A contingency fee is a payment arrangement where a lawyer receives payment only if the case was won, usually as a percentage of the settlement or court’s award that came later–normally 25% to 40% after costs. 

This system generally applies in personal injury suits, employment law, or class-action lawsuits so that the purpose of suit can be pursued without upfront costs. However, contingent fees almost never apply in criminal defense and family law cases. This further enhances access to justice since clients who cannot afford hourly fees have means to secure representation; also attorneys are incentivized to take such cases that may be far more likely to yield a winning result- which may incidentally elevate said settlements even higher as the lawyers thus have an incentive to optimize the value of the case. 

However, it might sometimes disincentivize, since given that lawyers are enticed to fast money, they may prefer quick settlements rather than prolong the litigation process. Clients should assess the contingency fee agreements extensively to know what is required of them and whether the arrangement is in their best interest.