Understanding Contingency Fees: What You Really Pay

One of the biggest concerns for people considering a personal injury claim in Ontario is cost. If you are already dealing with medical bills, lost income, and the stress of recovery, the last thing you want is another financial burden. That is why most personal injury lawyers, including those at Auger Hollingsworth, work on what is called a “contingency fee” basis.

But what exactly does that mean? And how can you be sure you are getting a fair deal? Let us walk you through it.

What Is a Contingency Fee?

A contingency fee is a payment arrangement where your lawyer is paid only if you win your case or reach a settlement. Instead of paying an hourly rate or a flat fee upfront, your lawyer receives a percentage of the amount recovered in your case. If you do not get compensated, your lawyer does not get paid.

This model makes it possible for injured people to access legal representation without worrying about upfront costs. It also ensures your lawyer is motivated to fight for the best possible result.

What Percentage Will You Pay?

In Ontario, all contingency fee agreements must now follow a standard format. The one main difference between firms is the percentage they charge. Some may advertise a lower percentage, but that does not always mean you will end up with more money.

For example, a lawyer who charges 20 percent but settles quickly for $50,000 may not serve you as well as a lawyer who charges 30 percent but builds a stronger case and settles for $200,000.

At Auger Hollingsworth, we are transparent about our fees from day one. We discuss the contingency rate clearly and ensure that you understand exactly how fees and disbursements (case-related expenses) will be handled.

What About Other Costs?

While the legal fee comes out of your settlement, there are also “disbursements.” These are out-of-pocket expenses paid by the law firm during the case, such as fees for medical records, expert reports, or court filings. At Auger Hollingsworth, we cover these expenses upfront, so you are never out of pocket.

If your case is successful, disbursements are reimbursed from the settlement. If it is not, you do not owe us for them. In most cases, we also recover part of the legal fee from the other side through a contribution to legal costs, which can help offset what you pay.

Ask Questions and Read the Agreement

Before you hire a lawyer, ask to see the contingency fee agreement and make sure it is explained to you. A good lawyer will give you time to review it, answer all your questions, and help you make an informed decision.

ALSO READ: Questions to Ask Before Hiring a Personal Injury Lawyer

Fair Fees, Clear Terms, Real Results

At Auger Hollingsworth, we believe that legal fees should never be a barrier to justice. Our team is committed to clear communication, no surprises, and putting your interests first.

Call us today for a free consultation. We will explain everything you need to know about contingency fees and show you how we can help without adding to your financial stress.