Attorney Fees
Definition
Attorney fees are the charges a lawyer receives for legal services. In personal injury cases, fees are typically structured as contingency fees—a percentage of the recovery paid only if the case is successful. This arrangement differs from hourly fees, where clients pay for each hour of work regardless of outcome. Fee agreements must comply with Texas State Bar rules and should be clearly documented in writing.
How It’s Used in Personal Injury Cases
Most personal injury attorneys work on contingency, typically receiving one-third of the settlement or verdict. This percentage may increase if the case goes to trial or appeal due to the additional work required. The contingency fee is usually calculated on the gross recovery before deduction of medical bills and costs—though some arrangements calculate from net recovery. Understanding exactly how fees are calculated and when they are owed is essential before signing any fee agreement.
Practical Example
Angela’s car accident case settled for $60,000. Her contingency fee agreement provided for a one-third (33.33%) attorney fee. Her attorney received $20,000. After also deducting $5,000 in case costs and paying $10,000 in medical liens, Angela received $25,000. Her attorney explained this breakdown before she agreed to the settlement, so there were no surprises about her final recovery.
Why It Matters to Your Case
Contingency fees allow injured people to pursue claims without paying upfront legal costs—your attorney only gets paid if you win. However, understanding how fees are calculated ensures you know what you will actually receive from any settlement or verdict. A written fee agreement should clearly explain the percentage, when it applies, and how costs and medical bills affect your recovery. Ask questions before signing to avoid later confusion.
Key Takeaway
Contingency attorney fees mean you pay nothing unless you win—understand exactly how your fee is calculated before signing to know what you’ll actually receive from your settlement.