A damages based agreement, also known as a contingency fee agreement, is a popular way for individuals to access legal services without having to pay upfront fees or expenses. Essentially, a damages based agreement is an agreement between a client and a lawyer where the lawyer agrees to take on the client’s case and only receive payment if and when a successful outcome is achieved.
So, how exactly does a damages based agreement work? Let’s take a closer look.
Firstly, it’s important to note that damages based agreements are typically used in cases where a financial award is being sought. This could include personal injury claims, employment disputes, or commercial litigation. The client and lawyer will agree on the percentage of the financial award that the lawyer will receive if the case is successful. This percentage can vary depending on the complexity of the case and the amount of work involved.
Once the agreement has been made, the lawyer will begin working on the case. They will investigate the circumstances and gather evidence to build a strong case. They may also consult with experts in relevant fields to build a strong argument. This can include medical professionals, financial experts, or forensic scientists, depending on the nature of the case.
Throughout the process, the lawyer will keep the client informed of progress and provide regular updates. They may also advise the client on settlement offers if they arise.
If the case is successful and a financial award is granted, the damages based agreement comes into play. The lawyer will receive their percentage of the award as previously agreed upon. This payment will cover their fees and expenses, including any costs incurred during the course of the case.
It’s important to note that if the case is not successful, the lawyer will not receive payment for their time or expenses. However, some damages based agreements may still require the client to pay for certain expenses, such as court fees or expert witness testimony.
In conclusion, a damages based agreement can be a helpful way for individuals to access legal services when financial circumstances may otherwise prevent them from doing so. By agreeing upon a percentage of a potential financial award, clients can hire a lawyer without having to pay upfront fees or expenses. If the case is successful, the lawyer will receive their agreed upon percentage of the financial award. However, if the case is not successful, the lawyer will not receive payment for their time or expenses.