The Contingency Fee Model
Under a contingency fee agreement, the attorney receives no upfront payment. Instead, they receive a percentage of any monetary recovery — typically 33-40% of the settlement or verdict. If the case is lost or no recovery is obtained, the attorney receives no fee (though you may still owe case costs depending on your agreement).
Typical Contingency Fee Percentages
- Pre-litigation settlement: typically 33% (one-third)
- After a lawsuit is filed: typically 35-40%
- After trial begins: may be higher — sometimes 40-45%
- Workers' comp cases often have lower percentages, regulated by state law
Fees vs. Costs
The contingency fee is for the attorney's services. "Costs" are separate — expenses incurred in handling the case (court filing fees, expert witnesses, deposition costs, medical records). Review your retainer agreement carefully to understand whether costs are advanced by the attorney and deducted from recovery, or billed separately.
What the Agreement Should Specify
- The contingency fee percentage at each stage
- Whether costs are deducted before or after the attorney fee is calculated
- What happens if no recovery is obtained
- How fee disputes are resolved
- Who makes settlement decisions
Why Contingency Fees Make Sense for Victims
Contingency fees allow injured people who cannot afford hourly legal fees to access experienced representation. The attorney's interests are aligned with the client\'s — the attorney is motivated to maximize the recovery because their fee depends on it.
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InjuryClaimSource is an educational resource. We are not a law firm and do not provide legal advice. Consult a qualified personal injury attorney for advice about your specific situation.