How Do Personal Injury Law Firm Contingency Fee Contracts Work?

4 mins READ
Get a free consultation Call us About us

Contingency fee contracts are a common arrangement in personal injury cases, allowing clients to pursue justice without upfront costs. These agreements enable clients to hire an attorney without paying fees unless they win their case, ensuring that legal representation is available to those who may not have the financial resources to pay out of pocket.

Understanding Contingency Fee Contracts

A contingency fee contract is a payment agreement where the attorney’s fees are contingent upon winning the case. In contrast to hourly or fixed fee arrangements, a contingency fee is calculated as a percentage of the total compensation received from the insurance company for the injuries caused in an accident. If the case is unsuccessful, the client owes no fees to the personal injury attorney. These contracts usually specify an agreed-upon percentage, typically ranging from 25% to 40%, based on the case’s complexity and whether it proceeds to trial.

Calculation of Fees

Fees under contingency contracts are calculated as a percentage of the settlement or award. For example, if an attorney’s fee is set at 33% and the client receives a $100,000 settlement, the attorney would receive $33,000. It’s important to note that this percentage can vary, and clients should be aware of how these fees apply to their potential settlement amounts before hiring an injury law firm.

Costs and Expenses

While the attorney’s fees are covered under a contingency fee agreement, clients may still be responsible for certain litigation costs and expenses. These can include expenses such as court filing fees, charges for obtaining medical records, expert witness fees, and other necessary expenditures. Typically, these additional expenses are deducted from the settlement amount and do not come directly out of the client’s pocket, even if the claim or lawsuit are unsuccessful.

If the Claim is uncessful or Case is Lost

If the lawsuit does not lead to a favorable outcome, the client generally does not owe any attorney fees. It’s essential for clients to discuss these potential obligations with their attorney upfront.

Client Obligations

Clients have specific responsibilities under a contingency fee contract. These include cooperating fully with their attorney, providing necessary documentation, and keeping their attorney updated on their medical treatment and progress. For example, clients should inform their attorney about the medical providers they are seeing and notify them when they finish treatment to ensure accurate case management.

Payment Process

Attorneys are paid under these contracts once the settlement funds are disbursed. Typically, the attorney will receive the settlement check, deduct their fee and any costs, pay off any medical liens, and then provide the remaining amount to the client. This process ensures that all financial aspects are handled transparently and efficiently.

Fee Percentages

While most law firms have similar fee structures, it’s wise for clients to ask about the fee percentages during the hiring process. Not all firms charge the same percentage, and there is often a larger fee if the case goes to litigation. Understanding these differences can help clients make informed decisions when selecting a personal injury law firm.

What to Look for in a Contract

A clear and fair contingency fee agreement should include:

  • The percentage fee
  • Details on how litigation costs are handled
  • Clarification of client obligations
  • What happens in the event of a loss
  • A detailed explanation of the payment process


What is a contingency fee contract? A contingency fee contract is an agreement where the attorney’s fees are only paid if the client wins the case.

How are contingency fees calculated for a personal injury claim? Fees are typically a percentage of the total settlement or award, commonly ranging from 25% to 40%.

What costs are covered under a contingency fee agreement? While attorney fees are covered, there may be other expenses that will be charged and deducted from the settlement.

What happens if the case is lost? If the claim is unsuccessful or case is lost, the client generally does not owe any attorney fees.

Are there any upfront costs? In most cases, there are no upfront costs under a contingency fee agreement. Consultations with a personal injury or accident lawyer are free so makes it even more appealing to explore your legal options after being injured.

Additional Information

When evaluating a contingency fee contract, it’s important to grasp the wider context of personal injury law. Enlisting a personal injury lawyer gives you a committed advocate who can handle intricate legal processes and strive diligently to obtain the compensation you deserve.

If you’re uncertain about any aspect of your contract or case, always consult with your attorney for clarification and guidance. This approach ensures you are fully informed and prepared throughout the legal journey.

Contingency fee contracts offer a practical solution for people seeking legal representation for personal injury claims without the burden of upfront costs. By understanding how these agreements work, clients can make informed decisions and feel confident in their pursuit of justice. For further guidance, learn more about navigating the legal process from filing a claim to settlement.

Consult with an experienced personal injury attorney today! Contact Huffman & Huffman Brothers-in-Law for a free consultation or case evaluation. At Huffman & Huffman, we guarantee that our attorney fee for your personal injury claim will never overshadow what our clients put in their own pocket. That is just one of the ways we treat our clients like family. Call our legal team today and let our family help your family!

Related Posts

  • Man with a neckbrace
    Bike Accidents
    Car Accidents
    Dog Bites
    Pedestrian Accidents
    Personal Injury
    Premises Liability
    Slip and Fall Accidents
    5 mins READ

    Can I Make a Personal Injury Claim if My Injuries Are Not Serious?

    Can I Make a Personal Injury Claim if My Injuries Are Not Serious? Handling the aftermath of an accident can be challenging, particularly when your injuries appear minor. Many people mistakenly believe that only severe injuries warrant a personal injury claim. However, soft tissue injuries can still lead to considerable pain, interfere with your daily...
    Read More  
  • business woman in car listening carefully to someone
    Personal Injury
    3 mins READ

    How Distracted Driving Affects Personal Injury Cases

    Distracted driving is a major cause of catastrophic injuries on roadways. According to the National Highway Traffic Safety Administration, thousands of lives are lost annually due to driver distractions. Distracted driving is a pervasive problem that affects drivers of all ages, and includes any activity that diverts attention from driving, increasing the likelihood of accidents....
    Read More  
  • business-asian-people-and-lawyers-businessman-and-2023-11-27-05-34-55-utc
    Personal Injury
    4 mins READ

    How Free Consultations Work and Their Value in Personal Injury Cases

    Have you recently experienced an accident due to someone else’s carelessness and are considering legal action or seeking guidance on your rights? Or have you suffered injuries though no fault of your own and are exploring your legal options? Consider booking a free legal consultation with a personal injury law firm. Read more to understand...
    Read More