What are contingency fees? Why are they prohibited in EU?

Answer 1

The first answer is completely incorrect, the second one also misses the mark, but at least is on the right track.

A contingency fee is a fee charged by an attorney based most often on a percentage of the amount recovered in a case, with an agreement between the attorney and the client that if there is no recovery, the attorney is not entitled to a fee for his or her services. Expenses of the suit typically must be paid by the client whether the client wins or loses.

In many countries they're disfavored because of a view that they tend to foster both additional litigation and questionable activity by attorneys in order to drive up their fees.

Answer 2

Contingency fees are negotiated by the lawyer on his client to pursue a case as long as the monetary consideration arising from judgement will be divided by them. It is prohibited because it is unethical for the lawyer to get a great portion of the award that was supposedly paid to the plaintiff.

Answer 3

In the U.S. they are common parts of contracts. One side agrees to do something, like purchase a house, contingent on getting financing. I will pay your fee if you provide your service.