Money is often the first worry after a serious injury. Medical bills grow. Paychecks stop. You may wonder how you could ever afford a lawyer. Here is the hard truth. You usually do not pay a South Bend personal injury lawyer up front. Instead, most work on something called a contingency fee. They only get paid if you win or settle your case. This payment comes from the money they recover for you. This setup can remove pressure and let you focus on healing. It can also create stress if you do not understand how the fee works. You deserve clear answers before you sign anything. You need to know how the percentage is set. You need to know what happens with costs. You also need to know what you keep at the end. This guide walks you through each part.
What a Contingency Fee Really Means
A contingency fee is a simple deal. You agree that your lawyer gets a share of the money they win for you. If you recover nothing, the lawyer fee is usually zero. This ties your outcome to your lawyer’s outcome. You both want the strongest result.
Most states regulate these fees. Courts can review them for fairness. The American Bar Association explains that lawyers must use written fee agreements and charge reasonable fees. You can read general guidance at the ABA Model Rule on Fees.
You should always receive a written contract. You should be able to read it without help. You should have time to ask questions. If anything feels rushed, slow things down.
Common Contingency Percentages
Percentages differ by state, case type, and law firm. Many injury cases use a sliding scale. The share may rise if the case goes to court. It may rise again if there is a trial or appeal.
Here is a simple example of how a fee structure might look. This is only an example, not a promise of what you will see.
Sample Contingency Fee Structure
| Stage of the case | Lawyer percentage | When it applies |
|---|---|---|
| Pre lawsuit settlement | 33% | Case settles before a lawsuit is filed |
| After lawsuit is filed | 40% | Case settles after filing but before trial starts |
| After trial or appeal | 45% | Case goes through trial or appeal before resolution |
The higher share at later stages reflects more work, more time, and more risk. You should know the exact numbers before you sign. You should also know what could cause the percentage to change.
How Costs and Expenses Work
Contingency fees cover the lawyer’s work. They do not always cover case costs. These are hard costs that help prove your claim.
Common costs include:
- Court filing fees
- Medical records and reports
- Expert witnesses
- Accident reconstructions
- Travel and copies
- Deposition transcripts
Most lawyers front these costs for you. Then they get paid back from your settlement or award. This is one of the most confusing parts of a fee agreement. You need to ask three direct questions.
- Who pays costs if you lose
- Are costs taken out before or after the lawyer fee is calculated
- Can the lawyer spend over a set amount without asking you
The answers change how much you keep. The Federal Trade Commission warns people to get all fee details in writing in consumer deals. You can review general consumer advice about contracts at the FTC consumer education site. The same idea applies here. Written terms protect you.
Sample Settlement Breakdown
Numbers often help more than words. Here is a simple example that shows how money might be split. Again, this is only an example.
Example of a $100,000 Settlement
| Item | Amount |
|---|---|
| Gross settlement | $100,000 |
| Case costs repaid | $5,000 |
| Net after costs | $95,000 |
| Lawyer fee at 33% of net | $31,350 |
| Client share | $63,650 |
Your contract might use the gross number instead of the net. That one change can shift thousands of dollars. This is why you must read the math in the contract and not just the words.
Questions You Should Ask Before Signing
You are allowed to ask direct questions. You are allowed to take the contract home and think. You are allowed to say no. Here are three key topics to cover.
- Percentages. What is the fee at each stage. What events raise it.
- Costs. How are they approved. How are they taken out.
- Communication. How often will you get updates. Who will handle your case day to day.
You can also ask if the lawyer has handled cases like yours. You can ask how long those cases took. You can ask about likely ranges for settlement. No one can promise a result. Honest answers will still give you a rough picture.
When a Contingency Fee May Not Fit
Most injury cases use contingency fees. A few do not. A lawyer might suggest an hourly fee or a flat fee for certain tasks. This can happen if your case has low damages or high risk. It can also happen if you only need help with one step, such as reviewing a settlement offer.
You can also decide that a case is not worth the stress. That choice can hurt. It can still be wise. You can ask a lawyer to explain the pros and cons of moving forward. You deserve to understand your odds before you commit.
How to Protect Yourself
You protect yourself with three steps.
- Read every word of the fee agreement
- Ask for plain language if you see legal terms
- Keep a copy of everything you sign
You may also check your state bar website for rules on fees and for any past discipline. Many state bars post this information online. Public discipline records and fee rules can help you feel more secure about your choice.
You already carry pain, fear, and money strain. A clear fee agreement should not add to that load. When you understand how a contingency fee works, you gain control. You can decide if the lawyer is worth the cost. You can see what you might keep at the end. You can move forward with less doubt and more calm.
