Nearly all personal injury lawyers work on contingency. You pay nothing upfront, and the lawyer is paid a percentage of whatever money you recover. If you recover nothing, you owe no fee.
Personal injury lawyer fees and percentages
A common fee is about one third of the recovery. Many agreements step up, often to around 40 percent, if the case goes into litigation or to trial, because that takes much more work. The exact numbers vary by firm and sometimes by state rules, so read your agreement.
Fees and costs are different
The fee is what the lawyer earns. Costs are what the case spends: filing fees, medical records, expert witnesses, depositions. Firms usually advance the costs and take them back out of the settlement. Ask whether you owe costs if you lose. Most firms say no, but not all.
An example
Say your case settles for $60,000 with a one third fee and $3,000 in costs.
| Costs taken after the fee | Costs taken before the fee | |
|---|---|---|
| Settlement | $60,000 | $60,000 |
| Costs | $3,000 | $3,000 |
| Fee (one third) | $20,000 | $19,000 |
| To you, before medical bills | $37,000 | $38,000 |
That order makes a real difference on larger cases, so ask which one your agreement uses.
Medical bills and liens
If your health insurer, Medicare, or a hospital paid for treatment, they may have a right to be paid back from your settlement. A good lawyer will often negotiate those amounts down, which can put more money in your pocket than a lower fee would.
Get it in writing
Your contingency fee agreement should state the percentage at each stage, how costs are handled, and what happens if you change lawyers. Do not sign one you do not understand.