1. “We Don’t Get Paid Unless You Get Paid”: Understanding Contingency Fee Agreements

In the world of personal injury law, you’ve likely heard the phrase “We don’t get paid unless you get paid.” This popular slogan highlights contingency fee arrangements—a payment structure that has revolutionized access to legal representation for accident victims and others seeking compensation for injuries. But what exactly does this arrangement mean, and how does it benefit you as a client?

How Contingency Fee Agreements Work

Unlike traditional hourly billing or retainer fees, contingency fee agreements allow attorneys to represent clients without requiring any upfront payment. Instead, the attorney’s compensation comes from a percentage of the settlement or court award if the case is successful. If there’s no recovery, the attorney receives no fee for their services.

This arrangement creates several significant advantages:

Aligned Interests

Because the attorney only gets paid when you do—and their payment increases with the size of your settlement—they are motivated to pursue the maximum possible compensation. Their success is directly tied to yours.

Access to Justice

Contingency fees make quality legal representation available to everyone, regardless of financial status. This democratization of legal services ensures that even those facing financial hardship after an injury can secure experienced representation.

Reduced Financial Risk

Pursuing legal action typically involves numerous costs beyond attorney fees, including:

• Court filing fees
• Expert witness fees
• Medical record retrieval costs
• Deposition expenses
• Investigation costs

Under most contingency arrangements, the law firm advances these costs and only recovers them if your case succeeds, eliminating your financial risk.

Common Questions About Contingency Fees

Are There Hidden Costs?

Reputable law firms provide transparent fee agreements clearly outlining what percentage they’ll receive and how case expenses will be handled. These agreements should specify whether the percentage is calculated before or after expenses are deducted from the settlement.

What if My Case Goes to Trial?

Many attorneys structure their contingency fees with tiered percentages—a lower rate for cases that settle before filing a lawsuit, and a higher percentage if the case proceeds to litigation or trial. This reflects the substantial additional work required for trial preparation.

Can I Negotiate the Percentage?

While standard contingency percentages exist in the industry, there may be room for negotiation depending on:

• The complexity of your case
• The potential settlement value
• The expected timeline to resolution
• The attorney’s experience level

It’s appropriate to discuss fee structures during your initial consultation.

The True Value Proposition

While the contingency fee percentage might initially seem substantial, consider the value an experienced attorney brings:

• Knowledge of fair claim values and insurance company tactics
• Skill in negotiating with insurance adjusters
• Experience in properly documenting damages
• Understanding of legal precedents and procedural requirements
• Resources to build compelling evidence
• Trial expertise if settlement offers are inadequate

Studies consistently show that represented clients receive settlements significantly larger than unrepresented individuals—often 3-4 times higher, even after attorney fees are subtracted.

Beyond the Financial Arrangement

The “We don’t get paid unless you get paid” model offers benefits beyond finances:

Peace of Mind

With no upfront costs or monthly bills, you can focus on recovery without financial stress.

Case Screening

Because attorneys invest their time and resources without guaranteed payment, they carefully evaluate case merits before accepting representation. If an attorney takes your case on contingency, it suggests they believe in its validity.

Greater Accountability

The contingency model encourages attorneys to be efficient and strategic, as prolonged cases without resolution delay their compensation.

Choosing the Right Attorney

While contingency fees make legal representation accessible, not all attorneys offer the same experience or dedication. When selecting representation, consider:

• The attorney’s experience with your specific type of case
• Their track record of settlements and verdicts
• Their communication style and responsiveness
• Whether they handle cases personally or delegate to less experienced associates
• The resources they can commit to your case

The contingency fee model has transformed legal representation, ensuring that justice is available to everyone, not just those who can afford hourly legal fees. By aligning attorney success with client outcomes, this arrangement creates a partnership focused on achieving the best possible results.

People Also Ask

What’s the most a lawyer can take from a settlement?

The maximum percentage a lawyer can take from a settlement varies by state and case type, but typically ranges from 33% to 40% for personal injury cases. Some states impose caps through legislation or court rules—for example, limiting fees to 33% for cases settled before trial. Other jurisdictions use sliding scales where the percentage decreases as the settlement amount increases (e.g., 33% of the first $1 million, 25% of the next $1 million).

Medical malpractice cases often have stricter limits, with some states capping attorney fees at 15-30%. For cases involving minors or incapacitated adults, courts typically review and approve contingency percentages to ensure they’re reasonable. Outside regulated limits, the ethical rules governing attorneys require that fees remain “reasonable” based on factors like case complexity, attorney experience, and time investment.

In addition to percentage restrictions, many jurisdictions require that contingency fee agreements be in writing and clearly explain how costs and expenses will be handled. Always review these agreements carefully and don’t hesitate to ask questions about fee calculations.

What do most lawyers charge for a contingency fee?

Standard contingency fees for personal injury cases typically follow these patterns:

• 33% (one-third) is the most common percentage for cases that settle before filing a lawsuit
• 40% for cases requiring litigation or proceeding to trial
• 45% if the case involves an appeal after trial

These percentages can vary based on several factors:

• Case complexity and anticipated workload
• Potential value of the claim
• Geographic location (fees vary by region)
• Attorney experience and reputation
• Expected timeline to resolution

Some firms use sliding scales where the percentage decreases as the settlement amount increases. For example:

• 33% of the first $100,000 recovered
• 30% of the next $100,000
• 25% of any amount over $200,000

Additional considerations include how case expenses are handled—whether they’re deducted before or after the contingency percentage is calculated makes a significant difference in your net recovery. While these percentages may seem substantial, research consistently shows that represented clients typically receive settlements 3-4 times larger than unrepresented individuals, resulting in better net compensation even after fees.