The share
A contingency fee is a percentage of whatever is recovered for you, by settlement or by judgment. If nothing is recovered, no fee is owed. The percentage is set by agreement between you and the practice, and in some states a cap or a sliding scale applies to certain kinds of claims. The figure you are quoted should be written down, along with any step-up that applies if the case goes further, for instance once a lawsuit is filed or once a trial begins.
Costs are not the fee
Separate from the fee are case costs: court filing fees, obtaining medical records, expert witnesses, depositions, investigators. Practices differ on whether they advance these costs, whether you repay them out of the recovery, and whether you owe them if the case is lost. Ask, and read the clause.
- Gross or net: is the percentage taken before costs are subtracted from the recovery, or after? The difference can be large.
- Who pays costs if there is no recovery?
- Will you get an itemised statement of costs at the end?
Get it in writing
Most state bars require contingency agreements to be in writing and signed, and many require specific disclosures in them. Whatever your state requires, a practice that is reluctant to put the arrangement on paper before you commit is telling you something. Take the agreement home, read it, and ask about anything you do not follow.
General information about a common fee arrangement, not advice about your matter. Percentages, caps and disclosure rules vary by state; the practice and your state bar are the places to confirm them.