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You are here: Home / Contingency Fees—How Do They Work at Catalyst?

Contingency Fees—How Do They Work at Catalyst?

Catalyst Legal Group will often take a case on a contingency basis.  This means, if there is a result that produces money for our client, then we will receive a portion of that result.  The portion, or percentage of the recovery, varies depending on the complexity of the case, the work involved, and the likelihood of a successful result.  There are two kinds of contingency cases, pure contingency and partial contingency.

Pure Contingency

In a Pure Contingency case,Catalyst will cover all of the cost of litigation up front.Catalyst will pay all expenses, such as filing fees, expert fees, court costs, travel expenses, deposition cost, and transcript expenses.  When the case is resolved, before money is distributed to the client, the money recovered will be used to reimburse these expenses.

Example of Pure Contingency

Contingency Fee 30%

Costs paid by Catalyst:  $65,000

Recovery amount $1,000,000

(less) Catalyst’s Fee:  $300,000

(less) Costs reimbursed:  $65,000

Net check to client:  $635,000

Partial Contingency

In a Partial Contingency case, the client will pay all costs associated with a matter.  When the case is resolved, the client receives everything other than Catalyst’s fee (less any outstanding expenses).

Example of Pure Contingency

Contingency Fee 25%

Costs paid by Catalyst:  $0

Recovery amount $1,000,000

(less) Catalyst’s Fee:  $250,000

(less) Costs reimbursed:  $0

Net check to client:  $750,000

What type of contingency agreement is right for a given matter?

This is part of the analysis of each individual case.  The likelihood of recovery, the complexity of the matter, and the client’s needs all factor into the structure of each contingency fee agreement.  Your attorney will discuss the various options and factors in detail at an initial consultation.

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