Last reviewed: October 2026 by the InjuryLawResource Editorial Team. This guide is general information, not legal advice.
A contingency fee means your lawyer is paid a percentage of the money recovered in your case, and nothing if there is no recovery. In personal injury cases the percentage is commonly around one-third for a claim that settles and around 40% if a lawsuit is filed or the case goes to trial. Case expenses are separate, and how they are handled can change what you take home by thousands of dollars.
How a contingency fee works
Instead of billing by the hour, the lawyer takes on the cost and risk of the case. If you win or settle, the fee comes out of the recovery. If you recover nothing, you owe no fee. This arrangement lets people hire a lawyer without paying up front, and it gives the lawyer a direct interest in the result.
“No win, no fee” refers to the lawyer’s fee only. Whether you owe anything for case expenses after a loss depends on your agreement, which is covered below.
Typical percentages
There is no single standard rate, and percentages are negotiable. Many agreements use a sliding scale tied to how far the case goes:
| Stage the case reaches | Commonly seen fee |
|---|---|
| Settled before a lawsuit is filed | Around one-third |
| Settled after a lawsuit is filed | Around 35% to 40% |
| Goes to trial or appeal | Around 40%, sometimes more |
The higher rates reflect the extra work and risk of litigation. Ask exactly what event moves your case from one tier to the next. In some agreements it is filing the lawsuit; in others it is a later point such as the start of trial preparation.
Some fees are limited by law
Certain kinds of cases have fee limits set by statute or court rule. Examples:
- Claims against the federal government. Under the Federal Tort Claims Act, a lawyer may charge no more than 20% of an administrative settlement and 25% of a judgment or settlement after suit is filed (28 U.S.C. § 2678).
- Medical malpractice. Several states cap these fees. California, for instance, limits them to 25% if the case resolves before a lawsuit or arbitration demand is filed and 33% after (Cal. Bus. & Prof. Code § 6146).
- Workers’ compensation. Fees are usually set or approved by the state workers’ compensation agency and are lower than in injury lawsuits.
- Claims for children. A court generally has to approve a settlement for a minor, including the lawyer’s fee.
Rules differ by state, so ask the lawyer whether any limit applies to your type of case.
Case expenses are separate from the fee
Running a case costs money apart from the lawyer’s time. Typical expenses include:
- fees for medical records and police reports;
- court filing fees and the cost of serving the lawsuit;
- deposition transcripts and court reporters;
- expert witnesses, such as doctors, engineers or economists, often the largest item;
- investigators, exhibits and mediation fees.
Most injury firms advance these costs and are repaid from the recovery. In a claim that settles early they may be a few hundred dollars. In a case that goes to trial with several experts they can reach tens of thousands.
Before or after: the detail that changes your share
The fee can be calculated on the full recovery, with expenses deducted afterwards, or on what is left after expenses are deducted. The same $100,000 settlement with a one-third fee and $10,000 in expenses works out differently:
| Method | Lawyer’s fee | Expenses | You receive |
|---|---|---|---|
| Fee on the full amount, then expenses | $33,333 | $10,000 | $56,667 |
| Expenses first, fee on the remainder | $30,000 | $10,000 | $60,000 |
Calculating the fee on the full amount is common. It is still worth asking for the second method, and you should at least know which one you are agreeing to. Medical liens and unpaid medical bills are normally paid from your share as well; see how much a settlement is worth for a full take-home example.
What the agreement must say
Under the American Bar Association’s Model Rule 1.5(c), which most states follow in some form, a contingency fee agreement has to be in writing and signed by the client. It must set out:
- how the fee is calculated, including the percentage at settlement, trial and appeal;
- which expenses will be deducted from the recovery;
- whether expenses are deducted before or after the fee is calculated;
- any expenses you must pay whether or not you win.
When the case ends, the lawyer must also give you a written statement showing the outcome, the amount paid to you, and how it was worked out. Keep it.
If you lose, or change lawyers
If there is no recovery, you owe no attorney fee. Expenses are a different matter. Many firms absorb them after a loss, but some agreements make the client responsible, and states differ on what is allowed. Ask directly: “If we lose, do I owe anything?”
If you change lawyers mid-case, the first lawyer is usually entitled to be paid for the work already done, typically out of the eventual fee and settled between the two firms. You should not end up paying two full fees, but confirm that with the new lawyer before you switch.
Questions to ask before you sign
- What is the percentage at each stage, and what triggers the higher rate?
- Is the fee taken before or after expenses?
- What expenses do you expect in a case like mine, and will you check with me before a large one?
- If we lose, do I owe any expenses?
- Is the percentage negotiable, or lower if the case settles quickly?
- Do you charge a fee on money used to repay my medical liens?
- Can I take the agreement home to read before signing?
For the wider interview, see questions to ask a personal injury lawyer and how to find a personal injury lawyer.
Frequently asked questions
Can I negotiate a contingency fee?
Yes. Percentages are set by agreement, not by a fixed rule. Lawyers are most open to a lower rate when fault is clear, the injuries are serious and the insurance is adequate, because the case carries less risk.
Do I pay anything up front?
Usually not. Most personal injury firms offer a free consultation and advance the case expenses.
Is a lawyer worth it if they take a third?
It depends on the claim. For a small property-damage claim, often not. For a claim with real injuries, disputed fault or a resistant insurer, a lawyer may recover enough more to leave you better off after the fee, and takes on the work and the risk. A free consultation is the way to find out for your case.
Does the fee apply to the whole settlement?
Normally it applies to the gross recovery, including the part that goes to repay medical bills or liens, unless the agreement says otherwise. This is one of the points worth raising before you sign.
Sources
- American Bar Association, Model Rules of Professional Conduct, Rule 1.5: Fees
- Federal Tort Claims Act, 28 U.S.C. § 2678 (attorney fee limits)
- California Business and Professions Code § 6146 (contingency fees in medical malpractice cases)
Fee rules vary by state and by type of case. Read your own agreement and ask the lawyer to explain anything unclear.
