Guide to Contingency Fee in Tort Law

What is a Contingency Fee in Tort Law?

A contingency fee, also known as a "conditional fee" or "success-based attorney," is an agreement between an accident victim and their attorney whereby the fee paid by the injured party to the attorney depends on achieving a favorable outcome in the claim. In other words: if you do not win the case or do not receive compensation, you pay nothing to the attorney. If you succeed, you pay him a percentage of the compensation received.

This model has been used in Israel for many years, particularly in tort claims—traffic accidents, workplace accidents, public negligence, and insurance claims. It allows injured parties, especially those without financial resources, to file a legal claim without upfront costs and with assurance that they will not bear legal expenses in case of failure.

Why Choose a Contingency Fee?

For a traffic accident or workplace injury victim, especially one who has suffered actual bodily harm, it is often difficult to afford an attorney upfront. With legal costs that may reach thousands of shekels, and without certainty of success, many forgo their right to sue. Contingency fees solve this problem: the injured party pays only if compensation is recovered. The attorney, in return, assumes the risk—if the claim is dismissed or settled for less than expected, he may lose income.

In Israel, many law offices, including our firm—Mandelbaum, Gor, Witzman-Gor and Co.—specialize in representing plaintiffs in tort cases precisely because we believe that every injured party has the right to fair compensation without financial barriers. We accept contingency cases as part of our commitment to community service.

Advantages of Contingency Fees

• No Upfront Cost: The injured party pays nothing during the consultation or initial case review phase.
• Shared Risk: The attorney shares the risk; he is interested in the best outcome because his success depends on it.
• Equal Access to Justice: Injured parties unable to pay an attorney "upfront" can still file a claim and be represented by an experienced attorney.
• Shared Motivation: Both parties—the injured party and the attorney—are interested in achieving the highest possible compensation.
• Transparency: The agreement is defined in writing in advance, so there are no surprises at a later stage.

Risks and Disadvantages of Contingency Fees

• Higher Percentage: Typically, contingency fees are higher than fixed fees because the attorney assumes risk.
• Lack of Clarity in Calculation: If it is not clearly defined how the percentage is calculated (from the total compensation? from the net? after deduction of expenses?), disputes may arise.
• Lack of Control: The injured party depends on the attorney's decisions regarding settlement acceptance, filing appeals, etc. If the attorney decides to settle for a low amount, the injured party may lose substantial income.
• Legal Risk: If the claim is dismissed or lost, the injured party receives nothing and may also have to pay the opposing party's legal costs (at the court's discretion).

How is success-based attorney fees calculated?

Success-based attorney fees are typically calculated as a percentage of the compensation received in the claim. The percentage varies depending on the type of case, its complexity, the stage at which it was concluded (early settlement or court judgment), and also in accordance with the professional regulations of the law firm.

Typical percentage ranges in tort claims

In tort claims in Israel, success-based attorney fee ranges typically fall between 15% and 40% of the compensation, depending on the following factors:

What is the calculation basis?

It is important to clarify: the percentage is typically calculated from the net compensation that the claimant receives, after direct legal expenses (expert fees, medical examinations, document expenses, etc.). However, there are differences between firms. Some calculate the percentage from the gross compensation (before expenses), and some calculate from the compensation after deducting expenses. This is why it is very important that the attorney fee agreement be detailed and in writing, so there is no ambiguity at a later stage.

At our firm — Mandelbaum, Gur, Witzman-Gur and Co. — we believe in complete transparency. Every success-based attorney fee agreement is clearly defined: what percentage, what the calculation basis is, and what direct expenses are deducted. We prefer equitable agreements, in which the claimant clearly understands what they are paying and in return for what service.

Percentages compared to fixed attorney fees

If the claimant chooses to pay an attorney on a fixed fee basis (without contingency), they typically pay a fixed hourly rate (ranging from 800 to 2,000 shekels per hour, depending on experience and complexity) or a fixed fee for representation in the claim (for example, 5,000–15,000 shekels for representation from the beginning to the end of the claim). However, for a claimant without financial resources, this is not viable. Success-based attorney fees allow them to avoid this payment upfront.

Types of Success-Based Attorney Fee Agreements

Not all success-based attorney fee agreements are the same. In Israel, several variations exist, depending on the preferences of the claimant and the attorney:

1. Fixed Percentage of Compensation

This is the most common model. The attorney receives a fixed percentage of the compensation received, regardless of the stage at which the claim was settled or its complexity. For example: "20% of the net compensation".

2. Variable Percentage Based on Stage

Some attorneys offer a lower percentage if the claim is settled early (for example, 15%), and a higher percentage if it reaches a court judgment (for example, 35%). This reflects the difference in legal work required.

3. Tiered Percentage Based on Compensation Amount

In cases where large compensation is expected, some attorneys offer a tiered percentage: for example, 25% on compensation up to 100,000 shekels, and 20% on the excess amount. This provides an economic advantage to the claimant in larger cases.

4. Mixed Attorney Fees

In rare cases, the claimant pays a small fixed fee (for example, 2,000 shekels) at the beginning of the case, plus a percentage of the compensation at the end (for example, 15%). This allows the attorney to cover some of his expenses upfront while still taking on risk.

At our firm, we typically accept cases on the basis of a fixed percentage of the compensation (usually 20%–30%, depending on complexity), so the claimant knows exactly what he is paying upfront, with no surprises.

What Should You Ask an Attorney Before Signing?

Before signing a success-based attorney fee agreement, it is important that the claimant ask the attorney clear questions:

• What exactly is the percentage? 20%? 25%? 30%? Is it fixed or variable?
• What is the basis for the calculation? Is the percentage calculated from the gross or net compensation? What are the direct expenses that are deducted?
• What about legal expenses? Who pays for medical examinations, expert fees, document preparation costs, etc.? Are they deducted from the compensation before calculating the percentage, or after?
• What if the claim is dismissed? Does the claimant need to pay the legal costs of the other party? Who pays?
• Is there an option to appeal? If the attorney decides to appeal a judgment, does the percentage change?
• What is the timeline? How long does a case like this typically take? When is compensation expected to be received?
• What about case updates? Will the attorney regularly update the claimant on the progress of the case?

All of these questions should be documented in a written agreement, so there is no misunderstanding later on.

Rights of an Injured Party in Tort Claims

It is important to understand that an injured party in a traffic or work accident is entitled to compensation under Israeli tort law. This compensation includes:

• Personal Injury Damages: Pain and suffering, loss of earning capacity, loss of income, medical expenses (past and future).
• Property Damages: Damage to vehicle, personal property damaged in the accident.
• Non-Pecuniary Damages: Damage to quality of life, impairment of enjoyment of life, psychological damages.
• Legal Costs: In some cases, the court may order the defendant (or their insurance company) to pay the plaintiff's legal proceedings costs.

The compensation amount is determined based on evidence: medical reports, testimonies, expert opinions, and case law precedents. In complex cases, these amounts can reach tens or even hundreds of thousands of shekels.

Contingency Fee in National Insurance Claims

In claims relating to national insurance (for example, determining disability percentage, increasing a pension, or appealing an insurance institution's decision), the law is somewhat different. Generally, a lawyer in national insurance cases cannot receive a contingency fee at as high a rate as in "classic" tort claims. However, the lawyer may receive a percentage of the added pension or compensation received as a result of the appeal. National insurance laws protect the insured's rights, and therefore there are limitations on the contingency fee that can be charged.

What is Our Office's Experience with Contingency Fees?

Our office — Mandelbaum, Gor, Witzman-Gor and Partners — specializes in representing plaintiffs in tort claims since 2008. Because we specialize in plaintiff cases only (and not in representing insurance companies or defendants), we accept most of our cases on a contingency fee basis. This reflects our commitment to equal access to justice — every injured party, regardless of their financial situation, deserves quality legal representation.

Over the years, we have accumulated deep experience in complex claim negotiations, negotiating with major insurance companies, preparing professional medical examinations, and courtroom representation. We understand the details that affect the compensation amount — from defining work-related disability to calculating future earning potential.

Our Ramat Gan office serves residents of Ramat Gan, Petach Tikva, Givatayim, Bnei Brak, Yarok, and the entire central region. We prefer face-to-face meetings to get to know the injured party personally, understand their story, and plan the representation according to their unique needs.

Why Choose an Experienced Contingency Fee Attorney?

Choosing the right attorney is a critical decision. When you are injured in an accident and seek compensation, you want someone in your corner — someone who understands the law, has experience with similar cases, and is motivated to obtain the highest possible compensation for you.

An experienced contingency fee attorney in personal injury law knows:

• How to assess the case's merits upfront — the probability of winning and the expected compensation range.
• How to negotiate with major insurance companies — they recognize experienced attorneys and are more likely to be open to fair settlements.
• How to prepare medical examinations and expert opinions that strengthen your claim.
• How to represent you in court, if necessary — this requires legal skills and knowledge of case law.
• How to calculate compensation accurately — not just for physical injuries, but also for indirect damages, loss of future earning capacity, and more.

At our firm, every personal injury attorney undergoes comprehensive training on these cases. We work with leading medical experts, we are familiar with current case law regarding compensation, and we know how to match the injured party's needs with the actual legal prospects.

What Does It Mean to Work with Our Firm?

When you choose to work with Mendelboums, Gor, Witzman-Gor and Partners on a personal injury case:

• Free Initial Consultation: You speak with an experienced attorney, share your story, and receive an initial assessment of your case — with no obligation or cost.
• Transparent Agreement: All terms are defined in writing. No surprises.
• Regular Communication: We keep our clients updated regularly on case progress. You always know where things stand.
• Full Representation: From the initial case evaluation, through document preparation, negotiation with insurance, and court representation if necessary — we are with you every step of the way.
• Local Office: Our Ramat Gan branch serves residents of Ramat Gan, Petah Tikva, Givatayim, Bnei Brak, Yehud, and the greater Tel Aviv area. We prefer in-person meetings.
• Experience Since 2008: Because we specialize exclusively in representing plaintiffs, we have deep experience with injury cases. We know what works and how to achieve the best compensation.

General Legal Information

The content on this page is general legal information only and does not constitute personal legal advice. Every personal injury case is unique, and the probability of winning, the compensation amount, and the attorney's fee percentage depend on the specific circumstances of the case. If you have been injured in an accident and believe you are entitled to compensation, we recommend consulting with an experienced attorney. At the initial consultation, the attorney will be able to assess your case accurately and provide you with professional advice.