What Percentage Do Lawyers Take For A Personal Injury Case?

In Kentucky, a personal injury case is one in which one party is injured due to the negligence of another. In these cases, the injured party has the right to compensation from the responsible party. A car accident claim is a common type of personal injury case.

In most states, if the other driver was responsible for the accident, you can file a claim for compensation for any incurred expenses with the other driver’s insurance company. If you feel the insurance company isn’t offering you fair compensation for your injuries after a car accident, you can file a lawsuit against the other driver and the insurance company. 

Other types of personal injury cases follow a similar trajectory. Usually, the case starts with an insurance claim and only escalates to legal action if needed. While legal action may be uncommon, personal injury lawyers can help with all aspects of a claim, even if it never goes to trial — and many claimants receive more compensation when represented by a lawyer.

But are they receiving more compensation after fees are calculated? Surprisingly, in most cases, they are. Hendy Johnson Vaughn, PSC, an experienced personal injury law firm in Louisville, KY, shares what you need to know about the typical fee structure for personal injury lawyers and what percentage they generally take from the cases they handle.

How Contingency Fees Work With Personal Injury Lawyers?

It helps to understand that almost all personal injury lawyers work on a contingency fee basis. This means that they initially charge nothing and only get paid if they successfully obtain money for their clients. If a lawyer loses a case, then they go unpaid.

Conversely, when the lawyer wins money, they receive a percentage of all money obtained as their fee. What percentage they take can depend on several factors. 

As a general rule of contract law, a contract requires both parties to agree to the terms before it can be enforced. Thus, your lawyer must inform you of their fee structure and get your approval — preferably in writing — before performing services for you.

Many states also have explicit laws that require attorneys to disclose their fee structure before performing services. These regulations are often strictly enforced and could result in a lawyer losing their license to practice if ignored.

Expected Personal Injury Attorney Contingency Fee Percentages

In Kentucky, most contingency fees average between 33% and 40%, but there are plenty of exceptions and variations. One of the most common variations is based on how the case ends. Many personal injury attorneys will charge a lower percentage — usually 25% to 35% — for cases that end in a settlement and then increase the percentage if the case gets more complicated.

For example, an attorney might charge 30% before a lawsuit is filed, 37.5% after it is filed, and 45% if the case goes to trial. The middle value may seem strange, but it is common for cases to be resolved via settlement after a lawsuit is filed, yet before the trial begins.

Additionally, some personal injury lawyers will charge different amounts of money for different types of personal injury cases. For example, many personal injury attorneys charge lower contingency fees for workers’ compensation cases than they do for medical malpractice or car accident cases. Some lawyers may charge as little as 10% to 20% for workers’ compensation cases.

Contingency Fee State Regulations

Another reason that contingency fees may differ throughout the U.S. is that some states cap them. For example, Michigan law limits personal injury attorneys to taking one-third of any compensation obtained as a contingency fee. This limit applies to all types of personal injury cases.

Currently, there is a ballot measure in Nevada that would place an even lower limit on contingency fees in the state. If the measure passes, all contingency fees in civil cases would be limited to 20%, the lowest limit in the country.

Fees That Shock The Conscience Of The Court

Furthermore, contract law doesn’t allow anyone to agree to a patently unfair contract. When a contract “shocks the conscience” of the court, a judge may find it invalid. While there is no set value for what constitutes an unreasonable fee, values above 50% are likely to be considered suspect by most judges.

Personal Injury Lawyer Pro Bono Work

Finally, personal injury lawyers sometimes provide pro bono services to a client. Pro bono work usually involves cases where the client is being treated particularly unfairly or is permanently disabled. If you ask a lawyer to work for you pro bono, they may not agree. However, an attorney might offer to take your case pro bono after hearing your story.

Even when a lawyer isn’t taking a contingency fee, that doesn’t necessarily mean you won’t need to pay a certain amount by the end of the case. Lawyers who are working pro bono may still require you to pay expenses if they win the case for you. 

Those expenses could add up in a complicated case, but they will generally be set values rather than a percentage of your winnings.

The End Result Of Attorney Fees In Personal Injury Cases

In general, if you seek a personal injury attorney to represent you, that attorney will charge a percentage of any money they obtain for you at the end of the case. This percentage is, on average, about 33%. Even with a contingency fee, though, hiring a lawyer usually nets you more money than you would have received on your own.