How Lawyers Get Paid: personal injury contingency fees

If you’ve been hurt in a crash, fall, or other accident, one of the first questions you’ll have is: “How do I pay a lawyer?” In personal injury cases, most firms—including Law Offices of Wilkerson, Jones & Wilkerson—work on contingency fees. That means you don’t pay upfront. The lawyer is paid a percentage of the money they recover for you, and if there’s no recovery, you typically owe no attorney’s fee.

Below is a clear, plain-English guide to how contingency fees work, what they include (and don’t), and how to compare offers before you sign.

What Is a Contingency Fee?

A contingency fee is a payment arrangement where your attorney’s compensation is contingent (dependent) on winning or settling your case. Instead of hourly billing, your lawyer receives an agreed-upon percentage of the settlement or verdict. Typical ranges are commonly 33⅓% to 40%, with variations based on the stage of the case and complexity.

Why it exists:

• Injury victims often can’t afford hourly fees while they’re out of work or paying medical bills.

• The arrangement aligns incentives: your lawyer gets paid more only if you get paid more.

• It helps level the playing field against insurers with deep resources.

Standard Percentages You’ll See (and Why They Vary)

While exact numbers depend on your agreement and local rules, these are common structures:

• Pre-litigation (Before a lawsuit is filed): ~33⅓%
  Many cases resolve during claims handling with the insurance company.

• Post-filing/Pre-trial: 35%–37.5%
  Once a lawsuit is filed, lawyers invest more time in discovery, depositions, motions, and experts.

• Trial or Appeal: 40% (or more, by agreement)
  Trying a case is resource-intensive. Appeals add further time and cost risk.

These steps reflect escalating commitment. As risk and workload rise, so does the percentage.

What’s the Difference Between Attorney’s Fees and Case Expenses?

This is the most misunderstood part of hiring an injury lawyer. Attorney’s fees are the lawyer’s compensation (the percentage). Case expenses (costs) are the out-of-pocket items needed to build and present your claim, such as:

• Medical records and imaging fees

• Filing fees and service of process

• Expert witness fees (e.g., accident reconstruction, medical experts)

• Deposition transcripts and court reporter charges

• Trial exhibits, travel, postage, and mediators

How costs are handled

• Advanced by the firm: Most firms (including ours) advance case costs so you don’t pay as you go.

• Reimbursed at the end: If you recover money, those costs are reimbursed from the gross settlement before calculating your net.

• If there’s no recovery: Your agreement will specify whether you owe advanced costs. Many injury firms waive them; some do not. Read this section carefully.

Example: How the Math Works

Scenario: A case settles for $120,000 before a lawsuit is filed. Your agreement sets fees at 33⅓% and case expenses total $4,000.

1. Attorney’s fee (33⅓% of $120,000): $40,000

2. Case expenses reimbursed: $4,000

3. Medical liens/bills (example): $18,000

4. Your net to client: $58,000

Order of deductions is spelled out in your agreement and may vary by state or firm. Always ask to see a settlement statement that itemizes every line.

When Do Percentages Change?

• Early, low-effort settlements: Some firms offer a slightly lower rate if the matter resolves quickly.

• Complex or catastrophic cases: Higher anticipated costs and expert needs can push the percentage up.

• Appeals or post-trial motions: Agreements often include a higher tier for these stages.

• Client-driven risk decisions: If you reject a solid offer against advice, your agreement may address how that affects the fee if the case later requires trial.

Medical Liens and Subrogation: Why They Matter to Your Net

Health insurers, government programs, or medical providers may have liens or reimbursement rights. Negotiating these can significantly improve your final recovery. A good firm will:

• Verify lien validity

• Challenge improper charges

• Seek reductions based on hardship, procurement costs, or legal arguments

Reducing a lien by a few thousand dollars can increase your take-home amount just as much as increasing the settlement itself.

Pros and Cons of Contingency Fees

Pros

• No hourly bills or upfront fees

• Lawyer shares your risk and incentive

• Access to experts and litigation resources you couldn’t reasonably fund alone

Cons

• The percentage may exceed what you’d pay for a simple matter on an hourly basis (if you had the cash and legal savvy to manage it)

• Not every case qualifies (lawyers evaluate liability, damages, and collectability)

• If you terminate counsel mid-case, you may owe a quantum meruit (reasonable value) fee to prior counsel from the eventual recovery

Key Questions to Ask Before You Sign

1. What is the exact percentage at each stage (pre-suit, post-filing, trial, appeal)?

2. How are costs handled? Who advances them? What happens if there’s no recovery?

3. How will medical liens be addressed? Who negotiates them?

4. Will I receive a detailed settlement statement?

5. What’s your plan for gathering evidence, experts, and negotiating?

6. How often will I get updates, and who is my point of contact?

7. What happens if we disagree about an offer? Is there a contractual clause affecting fees?

Red Flags to Watch For

• Vague contracts that don’t separate fees from costs

• No discussion of liens or medical bill strategy

• Guarantees of a specific result (unethical and unrealistic)

• Pressure to sign immediately without time to review

• Inaccessibility—if you can’t get clear answers now, it won’t improve later

How Law Offices of Wilkerson, Jones & Wilkerson Approaches Fees

Our goal is simple: maximum net recovery with zero surprises. We:

• Offer clear written agreements with stage-based percentages

• Advance reasonable case costs and explain them upfront

• Pursue strategic lien reductions whenever possible

• Provide transparent settlement statements at resolution

• Keep you informed at every step, from intake to negotiation to potential trial

Have questions about whether contingency representation fits your situation? We’ll walk you through it in plain English and outline the likely path, timeline, and resources required.

One More Resource

If you’d like a broader overview of contingency arrangements, the American Bar Association offers a helpful explainer on fee agreements and what to look for in a contract. You can read it here: American Bar Association – Understanding Fee Agreements.

Bottom Line

Contingency fees make quality legal representation accessible when you need it most. The percentage you agree to should reflect the stage and risk of your case, while costs, liens, and communication should be spelled out clearly. When you understand the structure—and work with a firm that’s transparent about it—you can focus on healing while your legal team focuses on results.

Ready to talk through your options? Contact the Law Offices of Wilkerson, Jones & Wilkerson for a free, straightforward consultation.