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Personal Injury

How Contingency Fees Work


In a contingency arrangement, your lawyer is paid a percentage of what is recovered, and if there is no recovery, there is no attorney's fee.

How does a contingency fee work in Texas?

In a contingency arrangement, your lawyer is paid a percentage of what is recovered, and if there is no recovery, there is no attorney’s fee. The fee, case expenses and medical liens all come out of a settlement before you are paid, and the order they come out in matters.

“No fee unless we win” is one of the most common lines on injury websites, and one of the least explained. The written fee agreement is something you read and sign before any work begins, so the questions belong before your signature, not after it. Deadlines in an injury claim can run while you compare lawyers. Call 713-521-0059.

What should your fee agreement say?

The percentage and the circumstances that change it are set out in a written fee agreement, which you read and sign before any work begins. It should state the percentage and whether it changes if the case is filed or tried. It should also explain how case expenses are handled and what happens if the representation ends early. If any of that is unclear to you when you read it, that is a question to ask before signing, not after.

Are case expenses part of the fee?

No. The attorney’s fee is what your lawyer is paid, and case expenses are the money spent to build your case. Those expenses include filing fees, deposition and court reporter costs, medical and billing records, and expert witnesses. They can also include accident reconstruction, life care planners, economists, investigators, mediation fees and exhibits.

In a serious case these costs are substantial, and experts alone can run into six figures. Your agreement should say whether expenses are deducted before or after the fee is calculated, because that changes the arithmetic. It should also say what happens to advanced expenses if there is no recovery. Firms handle both differently, and ours are stated in writing before you sign.

What happens to your medical bills and liens?

What is owed for your treatment also comes out of a recovery. Health insurers frequently have subrogation rights, and some providers treat under a letter of protection, agreeing to wait for payment out of the recovery. In many cases hospitals in Texas can file liens, and government payers may have their own recovery rights.

Part of the work at the end of a case is negotiating these amounts down, and that work changes what you receive. A settlement figure is not your number until the liens are resolved.

What should you ask a lawyer before you sign?

A lawyer should be able to answer all five plainly. If an answer is vague or incomplete, ask again before you sign the agreement.

What does a civil sexual assault case cost you?

Nothing up front, and no attorney’s fee unless there is a recovery. The same contingency arrangement described on this page applies to a civil claim after a sexual assault. The exam, counseling and other costs that come first are handled separately from the case.

Under Article 56A.304(f) of the Texas Code of Criminal Procedure, you may not be required to pay for the forensic portion of the exam or the evidence kit, whether or not you report. Counseling, lost wages and medical care beyond the exam can be paid by Texas crime victims compensation under Chapter 56B, with no conviction required. See who pays for a sexual assault exam and Texas crime victims compensation.

Where a case calls for it, we bring in the right experts and, where it serves you, co-counsel with the resources a case like this demands. That decision is made in writing, with your consent, and it does not increase your total fee.

What rules govern a contingency fee in Texas?

Contingent fees in Texas are governed by Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct. Rule 1.04(d) requires a contingent fee agreement to be in writing. It must state how the fee is determined, including the percentages that apply and how expenses are handled. Section 82.065 of the Government Code requires the contract to be signed by the attorney and the client. Rule 1.04(a) prohibits an illegal or unconscionable fee.

Does bringing in another firm cost you more?

Rule 1.04(f) permits a division of the fee between lawyers who are not in the same firm only if three things are true. You consent in writing to the terms of the arrangement before the association or referral, including which firms take part and how the fee is divided. The division is either in proportion to the work each lawyer performs or made with each lawyer assuming joint responsibility. The total fee is not illegal or unconscionable. Rule 1.04(g) sets out how that arrangement is confirmed.

From your side, the point is that bringing in co-counsel is a decision you make in writing. We do associate co-counsel on cases that need resources beyond what a small firm carries alone. When we do, your total attorney’s fee does not increase, because the existing fee is divided between the firms. It happens only with your written consent, after you are told which firms would be involved and how the fee would be divided. Jacob Schiffer remains your lawyer and remains responsible for the case.

Primary sources

Every statute and case linked above was read at its primary source. Texas statutes change every legislative session and case law is constantly changing.

This page is general information about Texas law. It is not legal advice about your situation, and reading it does not create an attorney-client relationship.

What do you receive at the end of a case?

In a typical closing statement the lines appear in this order: the gross recovery, the attorney’s fee, case expenses, and the medical bills and liens. Your fee agreement decides whether expenses come out before or after the fee is calculated. What remains is yours. At the end of a case you should receive a written closing statement showing every one of those lines. If a firm cannot show you that on one page, ask why.

How Schiffer Law Firm Can Help You

We start by walking you through the written fee agreement, line by line, before you sign anything, including the percentage, how case expenses are handled, and what happens if there is no recovery. At the end of the case, you receive a written closing statement that shows every deduction.

Schiffer Law Firm is a Houston personal injury firm with 50 plus years of combined experience representing injured people and survivors across Texas.

There is no charge to talk, and no attorney’s fee unless there is a recovery.

Written by Jacob Schiffer, Attorney, Schiffer Law Firm. State Bar of Texas No. 24105175.

Call 713-521-0059.

Frequently Asked Questions

What is the fee?

A percentage of the recovery, stated in writing before you sign, with the percentages and how expenses are handled set out in the agreement.

Are case expenses the same as the fee?

No. They are separate from the attorney's fee, and the written agreement says how they are handled.

Does a sexual assault civil case cost anything up front?

No. There is no charge to talk, and no attorney's fee unless there is a recovery. Under Article 56A.304(f) of the Code of Criminal Procedure you cannot be charged for the forensic portion of the exam or the kit, and crime victims compensation can cover counseling and other costs.

Does bringing in co-counsel cost me more?

Rule 1.04(f) requires your written consent to the terms before the association or referral, and the total fee must not be illegal or unconscionable. When we associate co-counsel, the existing fee is divided between the firms and your total fee does not increase.

If there is no recovery, do I owe the expenses?

There is no attorney's fee without a recovery. What happens to advanced expenses is a term of your written agreement, and firms handle it differently, so ask before you sign.

What should I receive when the case ends?

A written closing statement showing the gross recovery, the attorney's fee, case expenses, and the medical bills and liens paid. What remains is yours.