Which fee arrangement pays the attorney a percentage of the recovery rather than a flat fee or hourly rate?

Which fee arrangement pays the attorney a percentage of the recovery rather than a flat fee or hourly rate?

• A. Contingency fee
• B. Negligence
• C. Client trust account
• D. Disbarment

Answer: (A)

Contingency fee is a compensation setup where the attorney’s payment comes as a percentage of what the client recovers, and the lawyer only gets paid if the case resolves in favor of the client. No upfront or hourly charges are required in this arrangement, which means the attorney bears some risk: if there’s no recovery, the lawyer typically does not receive a fee (though costs may be advanced or billed separately). This model is common in personal injury and other civil cases where clients may not have the means to pay hourly costs. The agreement is usually put in writing and must be reasonable under ethics rules; the percentage is negotiated and can vary by case and jurisdiction. The key idea is that the attorney’s profit depends on winning or recovering money for the client, aligning the lawyer’s incentives with a successful outcome. The other terms aren’t fee arrangements: negligence refers to a type of claim or wrongdoing, a client trust account is about how funds are held, and disbarment is a disciplinary action against a lawyer.

Contingency fee is a compensation setup where the attorney’s payment comes as a percentage of what the client recovers, and the lawyer only gets paid if the case resolves in favor of the client. No upfront or hourly charges are required in this arrangement, which means the attorney bears some risk: if there’s no recovery, the lawyer typically does not receive a fee (though costs may be advanced or billed separately).

This model is common in personal injury and other civil cases where clients may not have the means to pay hourly costs. The agreement is usually put in writing and must be reasonable under ethics rules; the percentage is negotiated and can vary by case and jurisdiction. The key idea is that the attorney’s profit depends on winning or recovering money for the client, aligning the lawyer’s incentives with a successful outcome.

The other terms aren’t fee arrangements: negligence refers to a type of claim or wrongdoing, a client trust account is about how funds are held, and disbarment is a disciplinary action against a lawyer.