How Do Contingency Fees Work in Personal Injury Cases?
If you’ve been injured in an accident and are thinking about hiring a personal injury attorney, one of your biggest concerns may be: “How much will it cost?” The good news is that most personal injury lawyers work on a contingency fee basis, which means you don’t pay anything upfront—and your lawyer only gets paid if you do.
In this post, we’ll break down how contingency fees work, what to expect, and what to look for before signing a fee agreement.
What Is a Contingency Fee?
A contingency fee is an arrangement where your attorney’s payment is contingent (dependent) on the outcome of your case. In other words, the lawyer only gets paid if you receive a settlement or win at trial.
If your case is unsuccessful and no compensation is awarded, you typically owe the attorney nothing for their time.
How Much Is the Contingency Fee?
While fee percentages can vary, the standard contingency fee in most personal injury cases is typically between 33% and 40% of your final recovery amount.
Common examples:
- 33% if your case settles before a lawsuit is filed
- 40% or more if your case goes to trial or requires an appeal
Each firm sets its own rates, and the exact percentage should be clearly outlined in your written fee agreement before your attorney starts working on the case.
What Costs Are Involved Besides the Attorney’s Fee?
Contingency fees usually do not cover case expenses such as:
- Court filing fees
- Medical record retrieval costs
- Expert witness fees
- Deposition or court reporter fees
- Investigation or administrative costs
Attorneys typically advance these costs during the case and are reimbursed from the settlement or judgment. Be sure to ask:
- Whether costs are deducted before or after the attorney takes their percentage
- What happens if the case is lost—some attorneys will still require reimbursement for expenses
Sample Breakdown of a Settlement
Let’s say you settle your personal injury case for $100,000. Here’s how a typical breakdown might look:
- Attorney’s fee (33%): $33,000
- Case costs advanced by the attorney: $5,000
- Remaining amount to the client: $62,000
Always read the fine print and ask your lawyer to walk you through exactly how fees and expenses will be calculated in your case.
Pros and Cons of Contingency Fees
Pros:
- No upfront payment required
- Lower financial risk for the client
- Attorney is motivated to maximize your compensation
Cons:
- You may pay a higher overall fee than an hourly rate if the case resolves quickly
- The percentage can increase if litigation or trial is required
Questions to Ask Before Signing a Contingency Agreement
- What percentage will you charge, and does it increase if the case goes to trial?
- Who pays the case expenses if we lose?
- Will I receive an itemized breakdown of all fees and costs?
- How will communication and billing updates be handled?
Being informed and asking the right questions can help you avoid surprises down the road.
Final Thoughts
Contingency fees make personal injury representation accessible to clients who might not be able to afford hourly legal rates. They allow injured individuals to pursue compensation without financial pressure—while giving attorneys an incentive to fight hard for the best possible result.
Need legal help? In California, navigating legal challenges, whether they involve personal injury, workers’ compensation, criminal defense or civil litigation, can be overwhelming. Khoury Law Group is here to provide the critical legal support you need. As a leading advocate for individuals facing legal battles, our experienced attorneys understand the complexities of the legal system and are committed to fighting for your best interests. With personalized legal strategies and compassionate support, we are dedicated to achieving the justice and compensation you deserve.
CONTACT US FOR HELP. Call us at (888) 354-6879 or fill out the form on our Contact page.
