A contingency fee ties the attorney's pay to your result: a percentage of the recovery, and nothing if there is no recovery. The concept is simple; the agreement is where the real money is decided. Here is every clause worth understanding before you sign.
How the percentage works
The fee is a percentage of the gross recovery before some deductions. If you settle for $300,000 at a one-third fee, the fee is $100,000 — but your net is lower still after case costs and medical liens come out. The single most important variable, beyond the percentage itself, is the order of deductions. Use the calculator to see how a costs-first versus fee-first convention changes your bottom line by thousands.
What a contingency agreement actually contains
- The percentage, and whether it is tiered (pre-suit vs. trial).
- Case costs — who advances them and whether they come out before or after the fee.
- Responsibility if you lose — does the firm or the client eat advanced costs?
- Lien handling — who negotiates medical liens and subrogation claims.
- Termination — what you owe if you change attorneys (see below).
Liens and subrogation — the hidden third party
Health insurers, Medicare, Medicaid, and medical providers often have a legal right to be repaid from your recovery — a lien or subrogation claim. These can quietly consume a large slice of your settlement. A skilled attorney negotiates them down, and that reduction frequently saves you more than the fee costs you. When comparing lawyers, ask specifically how they handle liens.
Comparing two fee quotes fairly
A 33% quote is not automatically cheaper than a 35% quote. If the 33% firm applies the fee before costs and does not negotiate liens, you can net less than with a 35% firm that deducts costs first and aggressively reduces liens. Run both scenarios through the net-recovery calculator using the same gross, and compare the net to you — the only number that matters.
If you switch attorneys mid-case
You generally have the right to change lawyers, but the first attorney may assert a lien for the value of work already done. This rarely increases your total fee — the two firms usually split the single contingency fee — but you should understand it before acting. We cover the mechanics in how to fire and switch attorneys.
