Most personal injury lawyers in the US work on contingency. You pay no hourly fee, and the lawyer takes a share of what you recover. This makes legal help reachable for people without savings. It also means the number on a settlement offer is not the number that reaches your bank.

What you keep from a settlement

Fee, costs and liens come out before your check is written. Works in any currency.

Assumes the percentage is taken from the gross amount. Your agreement may differ.

The usual fee structure

Contingency fees often fall around one third of the recovery, and they commonly rise, sometimes to about 40%, if a case goes to trial. The percentage can be negotiable, and state rules may limit it for certain cases. The agreement should be in writing, and many states require it.

What else comes out

  • Case costs: court filings, medical records, expert witnesses and depositions. Expert fees can be large.
  • Medical liens: health insurers, Medicare, Medicaid or hospitals may have a claim on part of the settlement.
  • Order of deduction: whether the percentage is taken before or after costs changes your net. Ask which.
  • Losing the case: ask whether you would still owe costs if nothing is recovered.

Questions for the first meeting

  1. How many cases like mine have you handled, and how many went to trial?
  2. Who will actually work on my case day to day?
  3. What is your fee at each stage: pre-suit, filed, trial, appeal?
  4. What will you need from me, and how often will you update me?
  5. Is there a deadline I should know about?

Deadlines and warning signs

Every state has a statute of limitations, and the clock can be much shorter for claims against a government body. If you are hurt, get medical care first, keep your records and photos, and think twice before giving a recorded statement to the other side’s insurer. Be wary of anyone who contacts you uninvited after an accident or promises a specific result. Your state bar can confirm a lawyer’s license and any public discipline.

Outside the US, fee rules are very different. The UK uses “no win, no fee” agreements with their own caps, and in Canada the rules vary by province. Ask the local bar or law society.