A contingency fees agreement is a contractual arrangement between a client and a lawyer where the lawyer’s fee is payable only if the case is successful.
Key features include:
No Win, No Fee: If the lawyer does not win the case, the client is not responsible for paying legal fees, although they may still be liable for certain disbursements (e.g., court filing fees, expert witness fees).
Percentage-Based Fee: If successful, the lawyer typically receives a percentage of the awarded compensation. The Contingency Fees Act in South Africa caps fees at 25% of the awarded amount or double the normal fee, whichever is lower.
Written Agreement: The agreement must be in writing and fully explained to the client, outlining the lawyer’s fee structure and any other potential costs. These agreements are commonly used in personal injury, medical malpractice, and RAF cases, enabling clients to access legal representation without upfront costs.