One of the most common questions people have when considering a personal injury lawyer is: “How much will this cost me?” The answer, in most cases, is nothing upfront.
Personal injury attorneys almost universally work on a contingency fee basis – meaning they only get paid if you win. If your case does not result in a settlement or court award, you owe no attorney fees.
How Contingency Fees Work
When you hire a personal injury attorney on contingency, you agree that if you win your case, the attorney receives a percentage of your settlement or court award as their fee.
Contingency fees typically range from 25% to 40% of the total recovery, depending on:
- The complexity of the case
- Whether the case settles before or after a lawsuit is filed
- Whether the case goes to trial
- Local market rates and norms
A typical fee structure might look like this: 33% if the case settles before a lawsuit is filed; 40% if the case requires filing a lawsuit and goes through litigation.
Case Expenses Are Separate
Attorney fees are not the only cost in a personal injury case. There are also case expenses – out-of-pocket costs incurred while building your case. These include filing fees, court reporter fees for depositions, costs to obtain medical records, fees for expert witnesses (doctors, accident reconstruction specialists, economists), and investigator fees.
In most cases, the law firm advances these expenses on your behalf and recoups them from your settlement – but this varies. The critical question to ask your attorney is: “Are case expenses deducted before or after your contingency percentage is calculated?”
Before vs. After Example
Suppose you have a $100,000 settlement, $10,000 in case expenses, and a 33% contingency fee. Expenses deducted first: $100,000 – $10,000 = $90,000 x 33% = $29,700 fee; you receive $60,300. Expenses deducted after: $100,000 x 33% = $33,000 fee; $100,000 – $33,000 – $10,000 = $57,000 to you. The difference is $3,300 – not trivial.
What Happens If You Lose?
If your case is unsuccessful, you owe no attorney fees under a true contingency arrangement. However, case expenses are a separate matter – some attorneys require you to repay expenses even if you lose; others absorb them. This is a critical point to clarify before signing any retainer agreement.
Getting the Agreement in Writing
Before signing anything, make sure your fee agreement clearly spells out: the contingency percentage and when it changes; how and when case expenses are handled; what happens to expenses if you lose; and when and how fees are calculated. A written retainer agreement is required by the ethics rules of most state bars. Never proceed without one.
For more guidance on choosing an attorney, see our full Find a Lawyer guide.