One of the first concerns people have when considering a personal injury claim is how they can afford an attorney, particularly when their injury has already created medical bills or time away from work.
Personal injury attorneys commonly address this concern by using contingency fees. Instead of billing the client by the hour throughout the case, the attorney agrees to receive a portion of a successful recovery as the fee for legal services. This arrangement allows injured people to pursue claims without having to fund ongoing legal work while their cases are pending.
It is important that you understand the agreement before signing it. Attorney fees and case expenses are not the same, and Utah's professional rules require contingency fee agreements to specify how both will be handled.
Key Takeaways About Personal Injury Lawyers’ Fees
- Personal injury lawyers commonly use contingency fee arrangements. The attorney's fee comes from the amount they recover rather than ongoing hourly payments.
- The fee must be explained in writing. Utah requires contingency fee agreements to state how the fee will be calculated.
- Attorney fees and case expenses are different. The agreement should explain how expenses are handled and whether the client could be responsible for them without a recovery.
- The percentage can depend on the agreement. Utah does not establish one standard contingency percentage for every personal injury case.
- Clients should know how their recovery is distributed. At the end of a contingency matter involving a recovery, the attorney must provide a written statement explaining the award distribution and how it was determined.
Quick Answer: Why Do Personal Injury Lawyers Use Contingency Fee Agreements?
Personal injury lawyers commonly work on a contingency fee basis, meaning their attorney's fee is paid from money recovered for the client rather than through upfront or ongoing hourly charges. The percentage, responsibility for case expenses, and the effect of litigation expenses on recovery should be explained in the written contingency fee agreement.
What Is a Contingency Fee?
A contingency fee means payment of the attorney's fee is dependent on the outcome of the case. Rather than charging a retainer or ongoing hourly attorney fees, the lawyer receives an agreed portion of the money recovered through a settlement, judgment, or other successful resolution.
This structure shifts much of the financial risk of pursuing the claim away from the injured client. The attorney and law firm invest the time and resources necessary to investigate the accident, gather evidence, communicate with insurers, negotiate the claim, and, when appropriate, pursue litigation without sending the client legal bills throughout the process.
The details still matter. The written agreement should establish exactly how the contingency arrangement works so the client understands the terms before representation begins.
How Much Does a Personal Injury Lawyer Charge in Utah?
There is no single contingency fee percentage established by Utah law for every personal injury case. Under Rule 1.5 of the Utah Rules of Professional Conduct, an attorney's fee must be reasonable. Factors relevant to reasonableness can include the time and labor required, the difficulty of the legal issues, customary fees for similar services, the amount involved, the results obtained, the attorney's experience, and whether the fee is fixed or contingent.
For a contingency representation, the particular percentage or percentages must be stated in the written agreement. The terms should address how the case proceeds, including whether different percentages apply if the case settles, proceeds through litigation or trial, or requires an appeal.
Rather than relying on an online claim about a "standard" personal injury lawyer fee in Utah, prospective clients should review the specific agreement offered by the attorney and ask questions about anything they do not understand before signing.
What Does Utah Require a Contingency Fee Agreement to Explain?
Utah Rule of Professional Conduct 1.5 requires a contingency fee agreement to be in writing and signed by the client. The agreement must state how the attorney's fee will be determined, including the percentage or percentages that accrue to the lawyer in the event of settlement, trial, or appeal.
The agreement must also explain litigation costs and other expenses that will be deducted from the recovery, and whether those expenses are deducted before or after the attorney's fee is calculated. Importantly, the agreement must clearly notify the client of any expenses they could be responsible for paying, regardless of whether the client ultimately prevails.
These requirements give prospective clients useful questions to ask before hiring an attorney. Instead of focusing only on the contingency percentage, clients should understand the entire financial arrangement.
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Are Attorney Fees and Case Costs the Same Thing?
No. An attorney's fee compensates the lawyer for providing legal representation. Case expenses are costs associated with pursuing the claim.
Depending on the case, expenses can arise from court filing fees, obtaining medical records, depositions, expert witnesses, investigations, and other third-party services needed to develop or litigate the claim. A relatively straightforward claim may involve very different expenses from a complex case requiring extensive expert analysis and litigation.
How those expenses are funded, deducted, and ultimately allocated should be addressed in the contingency fee agreement. That is why asking only about the attorney's percentage does not provide a complete picture of the financial arrangement.
What Amounts are Deducted From a Personal Injury Settlement?
When a personal injury case results in a recovery, the entire amount is not delivered directly to the client. The funds will be distributed in accordance with the fee agreement and other legal obligations associated with the claim.
Depending on the circumstances, disbursements can include attorney fees, case expenses, valid medical liens or reimbursement obligations, and other amounts that must legally be resolved from the recovery.
The precise distribution is case-specific, so a generic online calculation can be misleading. Utah Rule 1.5 instead provides clients with an important transparency protection: at the conclusion of a contingency matter, the attorney must provide a written accounting showing the outcome.
If there is a recovery, the statement must show the remittance to the client and how it was determined. Clients have the right to see how the recovery was distributed rather than simply receiving a final amount without an explanation.
Do I Pay a Personal Injury Lawyer If I Lose?
Under a contingency arrangement, the attorney's fee depends on obtaining a financial recovery. If there is no recovery, a contingency attorney's fee is generally not earned.
Attorney fees should not, however, be confused with case expenses. Utah's professional rules specifically require a contingency agreement to explain any expenses for which the client could remain responsible regardless of the outcome.
The answer to "Do I pay if I lose?" therefore depends in part on what is being discussed. The contingency arrangement governs the attorney's fee, while the written agreement should separately explain responsibility for case expenses. Reviewing that provision before signing prevents surprises later.
Why Do Personal Injury Lawyers Use Contingency Fees?
Serious injuries can create financial pressure at exactly the time someone needs skilled legal assistance. Requiring an injured person to pay a substantial retainer and hourly attorney bills could make representation difficult or impossible for many people.
A contingency arrangement allows an attorney to begin developing a viable claim without requiring the client to finance ongoing attorney fees. The Utah State Bar explains why contingent fees are often used in personal injury cases and how the lawyer's fees depend on recovering money for the client. It also connects payment of the attorney's fee to obtaining a successful financial recovery.
For clients, this means the decision to seek legal advice does not necessarily depend on whether they have money available to fund months or years of legal work. They can instead discuss the claim and the proposed fee arrangement with an attorney before deciding whether to proceed.
What Should You Ask Before Signing a Contingency Fee Agreement?
You should understand every term of the agreement before you sign it. Useful questions include:
- What fee percentage applies to my case?
- Can the percentage change if litigation, trial, or an appeal becomes necessary?
- How are case expenses funded and handled?
- Are expenses deducted before or after the attorney's fee is calculated?
- Could I owe anything if the case does not result in a recovery?
- How will the final distribution of a settlement or judgment be explained to me?
An attorney should be able to explain these terms clearly. A prospective client should not have to guess how the lawyer will be paid or how expenses will be handled.
Frequently Asked Questions About Personal Injury Lawyer Fees
Can I change lawyers if I already signed a contingency fee agreement?
A client generally has the right to change attorneys, but doing so can create fee issues that depend on the circumstances and agreements involved. A former attorney may assert a right to payment for work already performed, and the attorneys may need to address how fees will be allocated if the case later produces a recovery. Before changing lawyers, ask how the transition could affect the claim and fees.
Does rejecting a settlement offer increase my attorney's fee?
Not automatically. The controlling terms are those in the contingency fee agreement. Some agreements provide different percentages depending on the stage of the case, so what happens after a settlement offer is rejected can matter if the case proceeds into additional litigation. Clients should review those provisions before deciding how to respond to an offer.
Can an attorney change the contingency fee after I hire them?
The written agreement establishes the terms of the contingency representation. Any proposed modification to the fee arrangement must comply with the lawyer's professional obligations, including the requirement that the fee remain reasonable. If an attorney proposes changing the fee terms, the client should ask why and obtain a clear explanation of the change before agreeing to it.
Talk With a Utah Personal Injury Lawyer at Parker & McConkie About Fees and Your Claim
Questions about legal fees should not prevent you from finding out whether you have a personal injury claim. A free consultation with our team gives you an opportunity to understand the proposed contingency agreement, ask how expenses will be handled, and learn what representation would involve before deciding how to proceed.
If you were injured because of someone else's negligence, the Utah personal injury lawyers at Parker & McConkie can evaluate your circumstances, explain your legal options, and answer your questions about the fee arrangement before you agree to partner with us.
Call (801) 845-0440 for a free consultation with our team today.