Contingent Fee Agreements are commonly used by personal injury lawyers. Other types of law like business law or criminal law provide a service that does not seek to gain compensation for an intended purpose. In criminal law the defendants need someone to represent their interest so they don’t go to jail. Their fees will be paid strictly out of pocket. In business law, oftentimes lawyers are paid to minimize the liability of a business or protect them from being liable in certain situations (another service).

However, in personal injury law, the lawyer is working to get their client money to recover from property damage, injuries, and pain and suffering. Usually this means that the plaintiff is in need of money to sustain and recover back to their normal lifestyle (lost wages, medical expenses, money for repairs, etc.). Therefore, the personal injury lawyer and the client make a contingent fee agreement where the plaintiff does not have to pay any money unless he or she has received compensation from a settlement or verdict.

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