After a serious injury, the last thing you should be worried about is how you can afford a lawyer. Your focus should be on your health and your family. That’s why nearly all reputable personal injury law firms work on a “contingency fee” basis.
You have probably heard the phrase, “No Fee Unless We Win.” This post will explain in simple, clear terms exactly how contingency fees work, what “case expenses” are, and why this system is designed to help you get justice, no matter your financial situation.
1. What Is a Contingency Fee?
A contingency fee is a promise. It means our payment is contingent on us winning your case.
In simple terms: We only get paid if you get paid.Instead of charging you an hourly rate, we agree to take a set percentage of the total money we recover for you in a settlement or jury verdict. If we are not successful in recovering any money for you, you owe us absolutely nothing for our time and work. This means there is zero upfront cost and zero risk to you to hire our firm.
2. The Two Types of Costs: Attorney’s Fees vs. Case Expenses
This is the most important part to understand. In any serious injury case, there are two types of costs.
A. The Attorney’s Fee:
This is the percentage we are paid for our knowledge, skill, and time spent working on your case. The standard fee in Texas is often 33.3% (or one-third) of the gross recovery if the case settles before a lawsuit is filed. This percentage may increase to 40% if we have to file a lawsuit and go to court, because that requires much more work.
B. Case Expenses:
These are the upfront costs of building a strong case. Think of them as the raw materials needed to prove your claim. Our firm pays for all of these costs out of our own pocket and we are only paid back for them at the end, out of the settlement. Common case expenses include:
- Court filing fees
- Fees for getting your medical records
- Fees for hiring expert witnesses (like doctors or accident reconstructionists)
- Costs for depositions (interviewing witnesses under oath)
- Fees for investigators
Understanding that these are two separate costs is key to understanding how a final settlement is handled.
The final settlement amount includes both your economic damages and your non-economic damages. Learn more about how we value the ‘pain and suffering’ portion of your claim here.
Our firm handles all types of serious Houston personal injury cases on a contingency fee basis.
3. A Simple Example: How a Settlement is Paid Out
This Let’s use a simple, hypothetical example to make this clear.
Imagine you were injured in a car accident, and after months of fighting the insurance company, we reach a settlement for $100,000. Here is an example how the money would typically be distributed:
- Gross Settlement Amount: $100,000
- Attorney’s Fee is Calculated: If our fee is 33.3% of the gross amount, then:
- $100,000 x 0.333 = $33,333
- Case Expenses are Paid Back: Let’s say our firm spent $5,000 on medical records and an expert witness.
- Medical Bills are Paid: Any outstanding medical bills are paid directly from the settlement.
- You Receive the Rest: You get the remaining amount, your “net recovery.”
This process is handled by our firm in a trust account, and you will see a detailed settlement statement that shows you exactly where every single penny went. Transparency is our promise.
4. Why This System is a Partnership That Benefits You
The contingency fee system is powerful for two main reasons:
- It Provides Access to Justice for Everyone. It levels the playing field. You can hire a highly experienced lawyer to fight a massive insurance company, even if you don’t have a penny to your name.
- It Aligns Our Interests. Because we only get paid if you win, we are 100% motivated to get you the best possible result. We are in this together. We share the risk, and we share the reward.
Hear from other clients about their experience with our firm.
5. Common Questions About Contingency Fees
Ready to have that free, no-risk conversation?
Now that you know how our fees work, see how it all fits into the complete personal injury claim process.
Don’t Let Cost Stop You from Getting Help
The most important thing to remember is that you can afford to hire an excellent personal injury lawyer. The contingency fee system was designed to make sure of it.
If you have been injured, contact our law firm today. We will explain this process in detail and answer all of your questions so you can move forward with confidence, knowing you have a strong advocate on your side at no upfront cost.
