Do I have to Pay My Lawyer?

It depends upon the nature of the legal service. 

For any service rendered directly to the client, the client generally pays.  This might include legal planning, document review or drafting, defending a litigation matter, etc. 

In a personal injury case, and in many other cases where you are trying to obtain a judgment against another party, attorneys work on a contingency fee basis.

Below is a comprehensive breakdown of what a contingency fee is, how it works, and what you should know before entering into this type of agreement.

What Is a Contingency Fee?

A contingency fee means that the attorney’s payment is contingent upon the outcome of the case. In other words:

• You only pay the attorney if you win or recover money through a settlement or judgment.

• The attorney receives a pre-agreed percentage of the total recovery.

• If no recovery is made, you owe no attorney’s fees.

Attorneys are also typically reimbursed for out-of-pocket expenses they incur while pursuing the case.

How Much Is the Typical Contingency Fee in a Personal Injury Case?

Contingency fees usually range between 30% to 40% of the total recovery:

• One-third (33.33%) is common for cases resolved prior to litigation.

• The fee may increase if the case proceeds to trial, appeal, or requires significant additional work.

Attorneys will negotiate and confirm the percentage with the client before beginning work on the case. The agreement must be in writing, as required by Georgia law.

Is a Contingency Fee Used in Every Legal Case?

No. Contingency fees are common in personal injury, wrongful death, and other civil tort claims, but they are prohibited in certain types of cases:

• Criminal defense

• Divorce and family law matters

In those situations, attorneys may charge hourly rates or flat fees. Plaintiffs and attorneys are also free to negotiate alternative fee arrangements where allowed by law.

What Are the Benefits of a Contingency Fee Arrangement?

Contingency fees offer several distinct advantages:

1. Access to Justice

Clients who cannot afford to pay hourly legal fees can still pursue their legal rights, even against large corporations or insurance companies.

2. Case Screening and Merit-Based Representation

Experienced attorneys are unlikely to accept cases without merit, which helps reduce frivolous litigation. Lawyers may still take calculated risks on novel or challenging cases if supported by a valid legal theory.

3. Alignment of Interests

Because the attorney’s pay depends on the outcome, they are strongly motivated to secure the best possible result. Unlike hourly billing, there is no incentive to prolong the case.

4. Advance Payment of Litigation Costs

Contingency-based attorneys often advance litigation costs such as court fees and expert witness expenses, which many clients could not afford upfront.

What Are the Downsides of a Contingency Fee?

While contingency fees offer accessibility and incentive, there are some potential drawbacks:

• Disproportionate Pay for Short Cases: In rare cases, a quick settlement may lead to a large fee for the attorney despite relatively little time spent.

• Extended Litigation Risk: If a case takes longer than expected, the attorney may effectively work for a low rate or even a loss.

• Higher Long-Term Cost for Clients: To compensate for risk, contingency fees may ultimately cost more than an hourly rate—especially in straightforward cases with clear liability.

Both clients and attorneys share risk in a contingency arrangement, and results can vary.

What Types of Expenses Might Arise in a Personal Injury Case?

Aside from legal fees, case expenses (often paid upfront by the attorney) can include:

• Court filing fees

• Process server charges

• Expert witness and consulting fees

• Deposition costs (including court reporters and video services)

• Medical record and police report fees

• Trial exhibits, illustrations, or visual aids

• Travel expenses and mileage

• Postage, copies, and administrative expenses

In routine car accident cases, expenses may range from $2,000 to $5,000. In complex cases like trucking accidents, product liability, or medical malpractice, costs can rise to tens or even hundreds of thousands of dollars.

Example: In a past automotive product liability case, a co-counseling firm spent over $500,000 in litigation expenses.

Do I Have to Pay for These Expenses Upfront?

In most personal injury cases, no. Attorneys typically advance expenses and recover them only if the case is successful. This helps ensure that clients aren’t burdened during the already stressful aftermath of an injury.

However, fee agreements vary:

• Some attorneys require clients to cover expenses as they arise.

• Others include them as part of the recovery deduction if the case is won.

If the case is unsuccessful, most attorneys waive reimbursement of expenses—meaning clients pay nothing.

Conclusion: Is a Contingency Fee Right for You?

Contingency fees can be a valuable option for injured clients seeking justice without financial risk. They allow access to experienced legal representation while aligning the attorney’s success with your own. However, it’s essential to discuss the terms in detail with your attorney and understand the potential fees and costs involved.

If you’ve been injured and are exploring your legal options, speak with a qualified personal injury attorney to see if a contingency fee arrangement is appropriate for your case.