Contingency Fees Explained: How Personal Injury Lawyers Get Paid in Texas
💰 What Is a Contingency Fee?
A contingency fee means your lawyer only gets paid if you win. There are no upfront costs to hire the attorney. Instead, the fee is a percentage of your settlement or court award.
If you don’t recover any money, you don’t owe the attorney anything for their time.
🔢 Typical Contingency Fee Percentages
In Texas, many personal injury lawyers charge:
- 30% to 40% if the case settles before filing a lawsuit
- 35% to 40% or more if the case goes to court or trial
Each firm sets its own rates so check with your attorney for their rates. We can tell you our rates during our consultation.
📋 What’s Included in the Fee?
Most contingency fees cover:
- Attorney time and labor
- Negotiations with insurance companies
- Filing paperwork and court documents
- Gathering evidence, police reports, medical records
However, case costs (such as filing fees, expert witnesses, medical records) may or may not be included. Always ask. Most typically, case costs are deducted from the client’s portion rather than from the attorney’s portion.
⚠️ What Happens If You Lose?
In a true contingency agreement:
- You owe no attorney’s fee if you don’t recover money
- You may or may not owe case costs depending on your contract
Some firms cover case costs upfront and waive them if the case loses—others don’t. Be sure to read the fine print.
🧾 Example Breakdown:
Settlement: $100,000
Attorney fee (33%): $33,000
Case costs: $2,000
Net to client: $65,000
✅ Pros of Contingency Fees
- No out-of-pocket risk
- Attorney has incentive to fight for maximum recovery
- Access to legal help even if you can’t afford to pay upfront
❌ Cons to Be Aware Of
- Fee may feel high compared to hourly rates—but risk is on attorney
- If settlement is low, net payout may be modest
- Some firms charge the same % even for quick settlements—ask about tiers
🧠 Final Thoughts:
Contingency fees give injured Texans access to justice without worrying about legal bills. But not all agreements are created equal. Know the terms. Read the contract. And ask your lawyer to walk you through exactly how it works.
📆 Book a Free Injury Case Review
🌐 Visit us at mytxwills.com
⚠️ Disclaimer:
This blog is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney to review your situation and contingency agreement before signing.
