What percentage does a lawyer get in a settlement case

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The Percentages of Contingency Fees

In the vast majority of contingency fee agreements, the attorney receives a percentage of the total fee ranging from 33 to 40 percent; however, you can always attempt to negotiate a lower percentage or an alternative agreement. A personal injury attorney will, in the vast majority of instances, be entitled to receive 33 percent, also known as one-third, of any settlement or award.

For instance, if the insurance company for the party at fault offers you a settlement of $30,000, the amount that will be awarded to you and your attorney will be $20,000 and $10,000, respectively. (You should educate yourself on the process of hiring and working with an attorney as well as the circumstances under which it is appropriate to represent yourself.)

The Choice That Includes a “Sliding Scale”

Many legal professionals will draught a fee agreement in which the percentage of the contingency fee that will be paid varies based on the stage of the case in which it is resolved. This is what people commonly refer to as a “sliding scale.” For instance, fairly early on, your attorney may choose to send a demand letter to the other side of the dispute.

If you have a strong case, the other party may make a counteroffer, there will be additional negotiations, and a fair settlement may be reached before you have to file a personal injury lawsuit in court. If this occurs, you will have avoided having to go to court. In such a scenario, the percentage of the retainer fee that is paid to the lawyer might be the standard 33 percent, or it might be lower.


If, on the other hand, you reach a settlement after you have already filed a lawsuit, your attorney may be entitled to a greater percentage of the settlement money—perhaps even closer to 40 percent. For instance, if your case is settled for $30,000, but only after you have already brought a lawsuit against the other party in court, your attorney may be able to recover $12,000 if the fee agreement permits a 40% cut at this stage of the process.

If the lawsuit is taken all the way to trial, the percentage might even increase by a few points. Therefore, before making the decision to turn down a pre-suit settlement offer, you should think about the fact that as your case moves forward, the percentage of the settlement that you will have to give up might become more expensive.

What is a Fee-Based on Contingency?

A contingency fee is what you can expect from a personal injury attorney the vast majority of the time. Before beginning a court case or settlement negotiation, the client and the attorney will come to an agreement on the percentage of the total fee that will constitute the contingency fee.

The percentage is deducted from the total amount that has been settled, and not before the financial compensation has been determined. A written agreement outlining the terms of the contingency fee arrangement is typically signed by both the client and the law firm.

The court or an agreement signed by both parties will ultimately decide how much money will be paid out as part of the settlement. Because every case is different, there is no such thing as an average settlement. Your legal representation will be provided on a contingency fee basis, regardless of the amount in question. This indicates that they will take a predetermined percentage of your recovery, which is usually one-third, also written as 33.3%.


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