What Is a Contingency Fee for Personal Injury?

What Is a Contingency Fee for Personal Injury? Date: Sep 2, 2025

If you have suffered a personal injury and are seeking legal recourse, you may or may not be able to afford the lawyers’ fees due to compounding medical bills and lost income. This financial constraint shouldn’t be why you don’t get justice for your injury. Fortunately, with a contingency fee arrangement, you can rest assured knowing you’ll pay the personal injury lawyer fees only when your attorney secures a win in court and recovers compensation for you.

How Do Contingency Fees Work?

As the name implies, a contingency fee is contingent on a defined outcome. Simply, it allows you to defer payment of legal fees until you’ve received a favorable judgment. In that case, you’ll pay your lawyer a percentage of your award.

The percentage of your compensation that you’ll pay to your lawyer after successful representation depends on several factors, including:

• Complexity of the case
• Amount of damages sought
• Skill and experience of the lawyer
• Stage of the litigation
• Means of resolution — trial or settlement

Do You Have to Pay Your Lawyer if You Lose a Case?

Attorneys who charge a contingency fee are called “no win no fee” lawyers, implying that you’ll owe your attorney nothing if your case is unsuccessful. This arrangement saves you from upfront flat or hourly payments before the case and protects you from the risks your lawyer now carries.

You should note that although you’ll not be liable to pay solicitor’s fees after a loss, you may be required to pay for out-of-pocket expenses incurred by your lawyer during the trial. Depending on your agreement, these expenses may include:

• Court filing fees
• Expert witness costs
• Administrative costs
• Private investigators’ fees

Benefits of Contingency Fee Arrangements

As the plaintiff seeking compensation, you enjoy several advantages from a contingency arrangement:

• No financial risks: While a contingency arrangement doesn’t eliminate risks, it shifts them to the lawyer whose payment hangs in the balance. You bear no risks — if the case goes well, you have much to gain and if it doesn’t, you lose nothing.
• No upfront payments: With a contingency fee arrangement, you have no obligation to pay any upfront flat or hourly fees. This arrangement saves you from the financial burden of hiring a solicitor for your case.
• Accessibility to legal services: Suffering an injury can dent your finances due to medical bills and possible income loss. Consequently, you may find it hard to access legal services if you have to pay the fees up front. A contingency fee arrangement closes the gap and gives you access to much-needed legal services, making pursuing justice possible. 
• Mutual incentives: A contingency fee arrangement creates a mutually beneficial incentive that drives your lawyer to do the best within their power to win your case.
•  Cost predictability: Unlike flat and hourly billing arrangements, which are largely uncertain, a contingency fee arrangement allows you to predict the amount payable based on the agreed percentage.

Understanding Your Contingency Fee Agreement

No two contingency fee arrangements are the same. To make the most of yours, you must understand the terms before signing. Here are some specific details to look for in the contingency fee contract:

• Fee percentage: Depending on specific variables, this percentage can range from 20% to 50%. Confirm that the agreement specifies the fee percentages before and after filing the lawsuit.
• Cost and expenses: The agreement should outline potential costs and additional expenses. 
• Terms of payment: Ensure the agreement spells out a defined payment structure for expenses.

Common Questions About Contingency Fees

You’re navigating a challenging phase, and it’s normal if you have questions about the ins and outs of a contingency fee arrangement. We have compiled answers to some commonly asked questions to guide you through the process.

Are Contingency Fees Negotiable?

There are no fixed legal requirements for contingency fees, meaning you can negotiate the percentage with your lawyer until you reach a favorable agreement. On the other hand, expenses incurred during the case may not be negotiable as they’ll likely be out of your lawyer’s control.

How Are Medical Liens Handled?

If you win a personal injury case, the first deductions from your settlement will be the contingency fees and court-related expenses, followed by any liens from insurance companies or healthcare providers. The remaining amount will be paid to you as compensation for the damages you suffered due to the injury.

What Is the Difference Between Legal Fees and Costs?

Aside from legal fees payable to your lawyer only after a successful settlement, you may incur certain additional costs during your trial. The contingency fee doesn’t include these expenses, which range from court filing costs to jury fees, medical experts and private investigation costs. Before entering a contingency fee agreement with your lawyers, they will communicate these anticipated costs and a payment structure before you sign.

There are two standard payment methods for additional costs. The first method will require you to pay upfront expenses as your case unfolds. With the second method, your lawyer will agree to pay the costs out of pocket, meaning you’ll reimburse them from your settlement. In any case, you should clearly communicate with your lawyer to define any financial commitment on your part.

How Are Contingency Fees Calculated?

Contingency fees are calculated based on a fixed or sliding scale percentage. A fixed percentage means your lawyer will take a fixed amount of your total settlement — for example, 25% of an $80,0000 settlement. A sliding scale percentage means your lawyer agrees to take varying percentages depending on the stage or outcome of your case — a lawyer charging 40% of the first $20,000 they recover, 30% of the next $30,000 and 20% of any remaining amount above $45,000.

Whatever the percentage you agree on, your lawyer will commit to writing.

When Contingency Fees Are Most Appropriate

Contingency fees are a typical arrangement in civil litigation cases and can have several advantages for anyone seeking compensation for damages caused. But is a contingency fee arrangement appropriate for your case? Here are some pointers to consider when deciding whether it’s right for you:

• Financial constraints: A contingency fee arrangement is right for you if you’re facing financial difficulties that limit your legal options without it.
• Strong claim: If you have a personal injury claim, a contingency fee arrangement may be your best bet to allow you access to legal assistance while you recover from your injury. Some common personal injury cases that benefit from this arrangement include car accidents, slip and fall injuries, medical malpractice and accidents suffered at work.

Enjoy Access to Legal Services Without Upfront Payment

Whether seeking compensation for a personal injury from a car accident, medical malpractice or any other source, a contingency fee arrangement puts you one step ahead without the stress of upfront payments. Beyond the minimal financial risk you bear, it incentivizes your lawyers to put their best foot forward in your case.

At the Law Offices of Argionis & Associates, LLC, we offer legal services for personal injury cases on a contingency. Contact our team of passionate lawyers for a free consultation about your case.

George Argionis

George Argionis has over 20 years of experience in handling cases involving auto collisions, premises injuries, medical malpractice, product liability, construction-related and work-related injuries. He has dedicated his career to helping restore lives both emotionally and economically.