Simple Definition of a Contingency Fee
A contingency fee means:
- You do not pay legal fees upfront
- Your lawyer is paid a percentage of your settlement or award
- If you don’t win your case, you typically don’t pay legal fees
This aligns your lawyer’s interests with yours — they only get paid when you do.
How Contingency Fees Work in Alberta
In Alberta personal injury cases, contingency fees are governed by provincial rules to ensure fairness and transparency.
Here’s how the process generally works:
- You sign a written contingency fee agreement with your lawyer
- Your lawyer handles your case, often covering upfront costs
- If your case is successful, the lawyer takes an agreed percentage from the final settlement
To understand typical percentages, see our guide on what percentage personal injury lawyers take.
Typical Contingency Fee Percentages
While each case is different, most contingency fees in Alberta fall between:
- 25% to 40% of the final settlement
The percentage may vary depending on:
- How complex your case is
- Whether the case settles early or goes to trial
- The level of financial risk taken by the lawyer
What Costs Are Not Included?
Even with a contingency fee, there are additional expenses—known as disbursements.
These may include:
- Medical reports and expert opinions
- Court filing fees
- Police or accident reports
Some law firms cover these costs upfront and recover them later, while others may require partial payment during the case.
Always clarify this before signing an agreement.
Advantages of a Contingency Fee
Contingency fees offer several key benefits:
- No upfront legal fees
- Reduced financial risk
- Access to legal representation
- Motivated legal counsel
This structure is especially helpful for individuals dealing with lost income and medical expenses after an accident, such as those involved in motor vehicle accidents.
Potential Drawbacks to Consider
While contingency fees provide flexibility, there are a few considerations:
- The percentage can be significant depending on your settlement, but you don’t have to pay upfront.
- Disbursements may still be payable even if you lose, if you receive any disbursements from your personal injury lawyer.
- Not all cases are accepted on contingency. Moustarah & Company accepts most personal injury claims on contingency.
Understanding these factors can help you make an informed decision.
What Should Be Included in a Contingency Fee Agreement?
Alberta law requires contingency fee agreements to be clear and in writing. Your agreement should outline:
- The exact percentage the lawyer will charge
- How and when fees are calculated
- Responsibility for disbursements
- What happens if the case is unsuccessful
If you’re unsure what to look for, review our guide on choosing a personal injury lawyer in Edmonton.
Is a Contingency Fee Right for You?
For most injury victims, contingency fees provide a practical way to pursue compensation without financial strain.
However, every situation is different. You may also want to explore Do I have a claim? based on the specifics of your case.
Speak With a Personal Injury Lawyer in Edmonton
If you have questions about contingency fees or your legal options, getting personalized advice is the best next step.
You can reach out through our contact page to schedule a consultation.
Moustarah & Company is committed to transparency, clear communication, and helping clients understand every step of the legal process. Learn more about our team on our About page.