What is a contingency fee?

A contingency fee is a payment arrangement where the attorney's fee depends on a successful outcome. The attorney receives a percentage of the recovery and charges nothing if the case is lost.

What is the difference between damages and costs?

Damages are the monetary compensation awarded to the plaintiff. Costs (or expenses) are the out-of-pocket expenses incurred in pursuing the case, such as filing fees, expert witness fees, and deposition costs.

What does statute of limitations mean?

The statute of limitations is the legally prescribed time period within which a lawsuit must be filed. If you miss this deadline, your claim is typically barred regardless of its merits.

What is the difference between mediation and arbitration?

In mediation, a neutral mediator helps the parties negotiate a voluntary settlement — the mediator cannot impose a decision. In arbitration, a neutral arbitrator hears both sides and renders a decision that may be binding or non-binding.

What does fee-shifting mean?

Fee-shifting is a statutory provision that allows the prevailing party to recover their attorney fees from the losing party. It is common in civil rights, consumer protection, and employment discrimination statutes.

US Legal Glossary

A comprehensive glossary of legal terms commonly encountered in contingency fee cases, personal injury litigation, and civil law in the United States. All terms are explained in plain English.

55 terms

Answer: The defendant's formal written response to the plaintiff's complaint, admitting or denying each allegation and raising any affirmative defences.
Appeal: A request to a higher court to review and change the decision of a lower court. Appeals are based on alleged errors of law, not re-evaluation of facts.
Arbitration: A form of ADR in which a neutral third party (the arbitrator) hears evidence and arguments from both sides and renders a binding or non-binding decision. Arbitration is often faster and less formal than trial.
Bellwether Trial: A representative trial selected from a group of similar cases (often in an MDL) to test the strength of claims and help value the litigation for settlement purposes.
Breach of Duty: Failure to meet the standard of care required by law. A breach occurs when the defendant's conduct falls below what a reasonably prudent person would do under similar circumstances.
Burden of Proof: The obligation of a party to prove their allegations. In civil cases, the burden is on the plaintiff to prove liability by a preponderance of the evidence.
Case Costs (Expenses): Out-of-pocket expenses incurred in pursuing a case, separate from attorney fees. Includes court filing fees, deposition costs, expert witness fees, medical record retrieval, and postage. Responsibility for costs if the case is lost varies by agreement.
Causation: The requirement that the defendant's breach of duty actually caused the plaintiff's injury. Causation has two components: cause-in-fact (but-for causation) and proximate cause (foreseeability).
Class Action: A lawsuit in which one or more named plaintiffs bring suit on behalf of a larger group (class) who have suffered similar harm. Governed by Federal Rule of Civil Procedure 23.
Comparative Negligence: A system that reduces the plaintiff's damages by their percentage of fault. Most states use either 'pure' comparative negligence (recovery reduced by fault percentage) or 'modified' (recovery barred if plaintiff is 50% or 51% or more at fault).
Compensatory Damages: Damages intended to compensate the plaintiff for actual losses suffered, including economic damages (medical bills, lost wages) and non-economic damages (pain and suffering, emotional distress).
Complaint: The initial pleading filed by the plaintiff that sets out the factual allegations, legal theories, and requested relief (damages).
Contingency Fee: A fee arrangement in which the attorney's payment is contingent upon a successful outcome. The attorney receives a pre-agreed percentage of the recovery — typically 33⅓% to 40% — and charges nothing if the case is lost.
Contingency Fee Agreement: The written contract between attorney and client establishing the contingency fee arrangement, including the percentage, whether the fee is calculated on gross or net recovery, and responsibility for case costs.
Contributory Negligence: A harsh common law doctrine that completely bars recovery if the plaintiff is even 1% at fault. Only followed in Alabama, Maryland, North Carolina, Virginia, and the District of Columbia.
Damages: Monetary compensation awarded to a plaintiff in a civil lawsuit. Damages may be compensatory (to make the plaintiff whole), punitive (to punish egregious conduct), or nominal (to recognise a rights violation without significant monetary loss).
Defendant: The person or entity against whom a lawsuit is filed. In personal injury, the defendant is the party alleged to have caused the injury.
Demand Letter: A formal letter sent by the plaintiff's attorney to the defendant or their insurance company, outlining the facts of the case, the legal basis for liability, and the amount of compensation demanded.
Deposition: Sworn, out-of-court testimony given by a witness or party, recorded by a court reporter. Depositions are a key discovery tool and the testimony can be used at trial.
Discovery: The pre-trial phase of litigation in which each party obtains evidence from the other through interrogatories, depositions, requests for production of documents, and requests for admission.
Discovery Rule: A rule that delays the start of the statute of limitations until the plaintiff knew or should have known of the injury and its cause. Important in medical malpractice, product liability, and toxic exposure cases.
Duty of Care: A legal obligation requiring a person or entity to act with a reasonable standard of care toward others. Establishing a duty of care is the first element of a negligence claim.
Economic Damages: Quantifiable financial losses such as medical expenses, lost wages, property damage, and future earning capacity. Also called special damages.
Expert Witness: A person with specialised knowledge, training, or experience who is qualified to provide testimony on technical or scientific matters relevant to the case.
Fee-Shifting: A statutory provision that allows the prevailing party (usually the plaintiff) to recover reasonable attorney fees from the losing party. Found in civil rights (§ 1988), consumer protection (FDCPA, TCPA), and employment statutes (Title VII).
Good Faith: An implied obligation in every insurance contract requiring the insurer to deal fairly and honestly with its policyholder. Breach of this obligation gives rise to an insurance bad faith claim.
Interrogatories: Written questions sent by one party to another during discovery, which must be answered under oath within a specified time period.
Joint and Several Liability: A doctrine holding that each defendant in a multi-defendant case can be held individually liable for the full amount of the plaintiff's damages, regardless of their proportional share of fault.
Judgment: The official decision of a court resolving a dispute and determining the rights and obligations of the parties. A judgment may follow a verdict, a motion, or a default.
Lien: A legal claim or hold on a portion of a settlement or judgment. Medical providers, health insurers, and government programmes (Medicare, Medicaid) may assert liens against personal injury recoveries.
Loss of Consortium: A claim by the spouse (and in some states, children or parents) of an injured person for the loss of companionship, affection, sexual relations, and household services resulting from the injury.
Mediation: A form of alternative dispute resolution (ADR) in which a neutral third party (the mediator) facilitates negotiation between the parties to help them reach a voluntary settlement. The mediator does not impose a decision.
Multidistrict Litigation (MDL): A procedure (28 U.S.C. § 1407) that consolidates similar federal cases before a single judge for coordinated pretrial proceedings, commonly used in mass tort and product liability cases.
Negligence: A legal theory of liability based on a party's failure to exercise the degree of care that a reasonably prudent person would exercise under similar circumstances, resulting in harm to another.
Nominal Damages: A small monetary award (often $1) granted when a legal right has been violated but the plaintiff has not suffered quantifiable harm. Common in civil rights cases.
Non-Economic Damages: Subjective, non-monetary losses such as pain and suffering, emotional distress, loss of consortium, and loss of enjoyment of life. Also called general damages.
Plaintiff: The person who initiates a lawsuit by filing a complaint. In personal injury, the plaintiff is the injured party seeking damages.
Preponderance of the Evidence: The standard of proof in most civil cases. The plaintiff must show it is 'more likely than not' (greater than 50% probability) that the defendant is liable.
Proximate Cause: A legal concept requiring that the defendant's conduct be sufficiently connected to the plaintiff's injury. The harm must be a foreseeable consequence of the defendant's actions.
Punitive Damages: Damages awarded to punish the defendant for particularly egregious, malicious, or reckless conduct, and to deter similar behaviour. Not available in all states, and often subject to statutory caps.
Quantum Meruit: Latin for 'what one has earned.' A legal doctrine that allows an attorney to recover the reasonable value of services rendered if the contingency fee agreement is terminated before the case concludes.
Respondeat Superior: Latin for 'let the master answer.' The doctrine holding an employer liable for the tortious acts of employees committed within the scope of their employment.
Retainer Agreement: A written contract between an attorney and client that sets out the terms of representation, including the fee arrangement, scope of work, and responsibilities of each party. In contingency cases, this is sometimes called a contingency fee agreement.
Settlement: An agreement between the parties to resolve a dispute without a full trial. In personal injury, most cases settle — the defendant (or insurer) agrees to pay an agreed sum in exchange for the plaintiff releasing all claims.
Statute of Limitations: A law that sets the maximum time period within which a legal action must be filed. In personal injury, this is typically 2–3 years from the date of injury, though it varies by state and claim type.
Statute of Repose: A statutory deadline that bars claims after a set period from a specific event (e.g., date of product manufacture or sale), regardless of when the injury occurred or was discovered. Distinguished from a statute of limitations.
Strict Liability: Liability imposed without proof of negligence. In product liability, manufacturers can be held strictly liable for defective products under Restatement (Second) § 402A and Restatement (Third) of Torts.
Subrogation: The right of an insurer or other party who has paid a claim to 'step into the shoes' of the claimant and pursue recovery from the party responsible for the loss. Common in health insurance and workers' compensation.
Summary Judgment: A pre-trial ruling by the court that one party is entitled to judgment as a matter of law because there is no genuine dispute of material fact. Either party can move for summary judgment.
Survival Action: A claim brought on behalf of a deceased person's estate for the damages the deceased suffered before death, including pain and suffering and medical expenses. Distinguished from a wrongful death claim, which compensates the survivors.
Tolling: The legal suspension or pausing of the statute of limitations. Common tolling grounds include the plaintiff's minority (under 18), mental incapacity, the defendant's absence from the jurisdiction, and fraudulent concealment.
Tort: A civil wrong — other than a breach of contract — that causes harm, for which the law provides a remedy in the form of damages. Personal injury, medical malpractice, and product liability are all tort claims.
Verdict: The formal decision made by a jury (or judge in a bench trial) on the factual questions in a case, including liability and damages.
Vicarious Liability: The legal responsibility of one party for the actions of another, typically an employer for the acts of an employee performed within the scope of employment (respondeat superior).
Wrongful Death: A civil cause of action brought by the survivors or estate of a person who died due to another party's negligence or wrongful conduct. Each state has its own wrongful death statute.