Prospective clients often ask us about our contingency fee arrangement and how it measures up to hourly billing. It’s a great question, so we’d like to offer a brief comparison of the two and shed some light on their differences. If you’re considering hiring a lawyer for your personal injury, patient injury, or workers’ compensation case, we hope this will help you proceed confidently.
Breaking Down Attorney Contingency Fees Versus Hourly Billing
Here’s a quick side-by-side breakdown of how contingency fees differ from hourly billing as it applies to Cullotta Bravo Law and our clients in Aurora, Naperville, and areas around Chicago, Illinois:
Attorney Contingency Billing | Attorney Hourly Billing |
The attorney fee comes out of your winnings:
When reaching a favorable settlement or winning a case, the client pays their attorney a percentage of the damages awarded. This means we get paid out of the pot of money you win, not out of your pockets. |
The attorney fees come out of your pockets:
The attorney bills the client regularly for work performed throughout the process, before the client wins any potential damages. |
Low financial risk for client:
If a client loses their case, they pay their attorney nothing. |
Significant financial risk for client: The client pays the attorney for work provided, whether or not they win their case or achieve a favorable settlement. |
More accessible:
An individual experiencing financial hardship due to an injury or accident can get started right away without worrying about paying hourly attorney fees or a retainer. |
High barrier to entry:
A person dealing with lost wages and accruing medical bills would be invoiced regularly at an attorney’s hourly rate, effective at the start of the attorney-client relationship. The attorney could also require an up-front retainer. |
Miscellaneous expenses are tallied at the end:
Fees for miscellaneous expenses the client is responsible for are deducted from the damages awarded once a client wins their case. |
Miscellaneous expenses must be paid for as they arise:
Clients pay for miscellaneous expenses related to court filing as they arise, such as ordering medical records, depositions, discovery, court reporters, expert witnesses, and subpoena fees. |
Strong confidence in your success:
We carefully screen potential new cases and take on those we feel confident in. When you hire Cullotta Bravo Law, you hire a firm that believes your case is winnable. |
Little or no degree of confidence in your success is needed:
Attorneys may take on cases they know are likely to fail but at no risk to their firm since they will still be paid for their work. |
Predictable costs:
We agree with clients at the start about what percentage of the final recovery we will receive in the event of a settlement, trial, or appeal. In Illinois, it’s typical for attorneys working on contingency to charge from 33 1/3% up to 40% for attorney fees. Because each case is unique, we agree on a specific percentage before we begin our work. |
Unpredictable costs:
Clients can’t reliably predict the total amount they may spend on their case. It’s not easy to know how long or drawn out the case may be. As it continues, invoices continue mounting. |
Financial incentive for attorneys to go above and beyond:
Attorneys have a financial incentive to go above and beyond to secure the most lucrative settlement or award amount since they earn a percentage. |
No evident financial incentive for attorneys to try hard:
There isn’t a clear financial incentive for an attorney billing their clients hourly to seek the highest damages. They get paid regardless of what the client wins or doesn’t win. |
Contingency Fees Are a Win-Win for Clients
A percentage payment contingent upon a successful case is beneficial for clients, allowing them to work with their attorneys without the potential burden of financial limitations delaying the case. At Cullotta Bravo Law, we offer a no-obligation, free consultation to review your case’s details and discuss whether we believe it has a solid chance of succeeding. If it doesn’t, we’ll tell you so and may advise that you seek an alternate direction. When we work with you, we believe your chances of prevailing are good.
Let Our Experience Work for You
If you’re located in or around Aurora, Naperville, or Chicago, Illinois, and you’re dealing with the fallout from an accident or injury, this is not the time to worry about how you are going to pay an attorney, or to worry about receiving bills in the mail every month from a law firm.
Call us today at (630) 898-7800, or contact us online to discuss how we can negotiate and fight for what you deserve, medical bills, lost wages, and other reimbursements, and how you can focus on healing and winning your case, not on how you are going to pay for it.