Contingency fee vs Fixed fee
A fixed fee is a set price agreed in advance and payable whatever the result. A contingency fee is a share of what you recover and nothing if you lose. Fixed fees suit simple, predictable work; contingency fees suit claims where you want the lawyer to share the risk.
- If you lose
- Contingency fee: No fee to your lawyer (expenses and the other side's costs may apply). Fixed fee: The full fixed fee.
- If you win
- Contingency fee: An agreed share of the recovery. Fixed fee: The fixed fee only; you keep the rest of the award.
- Cash needed upfront
- Contingency fee: Little or none. Fixed fee: Often part or all of the fee at the start.
- Predictability
- Contingency fee: You know the percentage, not the final amount. Fixed fee: You know the price, unless the work goes beyond what was agreed.
- Typical use
- Contingency fee: Money claims with good prospects: injury, fraud, consumer and commercial claims. Fixed fee: Defined tasks: a demand letter, a simple debt claim, a contract review.
Frequently asked questions
Can I combine a fixed fee and a success fee?
Often, yes. Many lawyers in Spain, France, Italy and Brazil charge a smaller fixed fee plus a success fee. In some countries this mix is the only form allowed.
What does a fixed fee usually not include?
Court fees, expert reports and the other side's costs if you lose. Ask exactly which steps the fixed fee covers and what happens if the case goes further, such as to an appeal.
Is a contingency fee always more expensive if I win?
Not always. It depends on the size of the award and how much work the case needs. Ask the lawyer to show you both options on your figures.