Contingency fees
In plain English: a contingency fee means your lawyer is paid a percentage of what you recover. If you recover nothing, you usually pay no fee. In the UK the equivalent is a conditional fee agreement, better known as "no win, no fee".
Typical percentages
In the US, personal injury lawyers commonly charge around a third of the recovery. Many agreements go up, often to around 40%, if a lawsuit is filed or the case goes to trial. Canadian agreements often fall in a similar range, with provincial rules on how they must be written. In England and Wales, a lawyer's success fee in a personal injury claim is capped at 25% of your compensation for pain and suffering and past losses.
Fees are not the same as costs
Costs are the expenses of running the case: court filing fees, medical records, expert reports, deposition transcripts. Your agreement should say whether costs come out before or after the lawyer's percentage is calculated, and whether you owe costs if you lose. That one detail can change what you take home by thousands.
Example
A $90,000 settlement, a one-third fee and $6,000 in costs. If the fee is calculated first: fee $30,000, costs $6,000, you receive $54,000. If costs come off first: fee is a third of $84,000, which is $28,000, and you receive $56,000.
Questions to ask before you sign
- What percentage, and does it change at different stages?
- Are costs deducted before or after the fee?
- Who pays costs if we lose?
- Are medical liens or unpaid bills paid out of my share?
- In the UK: is there insurance for the other side's costs, and who pays the premium?
- Can I have a written example of what I'd receive at a few settlement amounts?
Related: how to hire an accident lawyer · lawyer vs representing yourself · lawyer consultation workbook.
Related terms
General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer