Typically, a 1/3 contingency fee means that the lawyer's fee is contingent (that means, it depends on the outcome of the case). So the lawyer could get nothing if you lose your case. The way the fee is usually calculated is that from the total settlement or judgment, the costs which the lawyer spent or incurred are deducted. From what is left, the lawyer gets 1/3 and you get 2/3. Example: Let's imagine that the case settles for $10,000 and that the lawyer spent exactly $1,000 to get medical records, file suit, take testimony from witnesses, etc. So the lawyer gets his/her $1,000 back, which leaves $9,000 to distribute between you and the lawyer.
Answered on Feb 21st, 2013 at 11:56 PM