When you are recovering from an injury, the last thing you should have to worry about is how to afford legal help. The mounting medical bills and lost income are stressful enough. Most personal injury lawyers work on a contingency fee basis, which means you pay no attorney fees unless you win your case. The fee is a percentage of the final settlement or award.
If you have questions about an injury you or a loved one sustained, you deserve to get answers. Call Leonard Hill - Personal Injury Lawyers And Car Accident Lawyers for a free, no-obligation consultation at (215) 567-7600.
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The Contingency Fee: Leveling the Playing Field After an Accident
What Is a Contingency Fee Agreement?
A contingency fee is a payment structure where a lawyer's fee is "contingent" on the outcome of the case. This arrangement is particularly common in personal injury cases.
Think of it as a partnership. We invest our firm's time, resources, and knowledge into your case with the shared goal of securing the maximum compensation available under the law.
The percentage is agreed upon at the beginning and documented in a written agreement, so there are no surprises.
Why Is This the Standard Practice for Personal Injury Cases?
It provides access to justice. After an accident, you are likely facing unexpected medical costs and may be unable to work. This model allows you to secure legal representation without needing to pay out of pocket. Cost is a significant barrier for many people in need of legal help; one study found that 92% of low-income Americans do not get enough, or any, legal help for their civil legal problems. The contingency model removes that barrier.
It aligns our interests with yours. Our success is directly tied to your success. This ensures we are fully motivated to pursue the best possible outcome for your case, as the fee is based on the amount we recover for you.
Are There Other Costs I Should Know About?
It is important to understand the distinction between attorney fees and case costs.
- Attorney Fees: This is the percentage paid to the law firm for their work on your case. Again, you only pay this if we win.
- Case Costs: These are the out-of-pocket expenses required to build and pursue your claim.
Examples of common case costs include:
- Court filing fees
- Fees for obtaining medical records and police reports
- Costs for expert witnesses (e.g., medical professionals, accident reconstructionists)
- Deposition and transcript costs
Our firm advances these costs on your behalf. We will not send you a bill for these expenses as the case progresses. They are repaid out of the settlement amount at the conclusion of the case, after the attorney's fee is calculated. If the case is not successful, you may still be responsible for these direct costs, which will be clearly outlined in your agreement.
How Contingency Fee Percentages Are Regulated and What Protects You as a Client
Contingency fees are not set arbitrarily. State law and bar association rules impose strict guidelines to protect injured clients from unfair or excessive charges.
How Contingency Fees Are Set
Before representation begins, your lawyer must give you a written fee agreement that spells out exactly what percentage will be charged. This agreement is a requirement under the Pennsylvania Rules of Professional Conduct. Lawyers are prohibited from charging fees that are “unreasonable” for the services provided.
Limits on Excessive or Unfair Fees
Pennsylvania law gives you several safeguards:
- Written Disclosure: All terms must be laid out in writing, including how the fee might change if your case goes to trial or on appeal.
- Regulation by the Courts: Courts can review and, if necessary, reduce contingency fees that are excessive relative to the work performed or the result obtained.
- Bar Association Oversight: If a client believes a fee is too high or the agreement was unclear, complaints can be made to the state bar, which can sanction attorneys for unethical practices.
What to Do if You Dispute a Fee
Pennsylvania provides dispute resolution options. You can request mediation or arbitration through the local bar association, or the issue can be brought before a court for review. Lawyers must return any portion of a fee deemed excessive by an arbitrator or judge.
How Medical Liens and Subrogation Claims Affect Your Settlement
Several other parties may have a legal right to a portion of your recovery—often before you see a single dollar. This is where medical liens and subrogation claims come into play.
What Is a Medical Lien?
A medical lien is a legal claim filed by a healthcare provider, hospital, or insurer for repayment of the costs of your medical treatment related to your accident. If your bills were paid by your health insurance, a government program, or you received care with the promise to pay later, those providers can assert a lien against your settlement.
Medical liens must be handled according to Pennsylvania law. If a valid lien exists, your lawyer is required to pay the lienholder out of the settlement before disbursing funds to you. This includes not only hospitals and doctors, but also government entities such as Medicare and Medicaid, or your health insurance plan under ERISA or state law.
What Are Subrogation Claims?
Subrogation is the process that allows your health insurance, government program, or workers’ compensation insurer to be reimbursed for any medical expenses they covered on your behalf after an accident. In effect, the insurer steps into your shoes to recover what they paid for your care. These claims are asserted against your settlement, reducing your net recovery unless negotiated.
How a Lawyer Maximizes Your Payout
Negotiating medical liens and subrogation claims is a key part of an experienced personal injury lawyer’s job. Hospitals and insurers don’t always have the final say—Pennsylvania law gives your attorney tools to reduce what’s paid back in many cases. For example:
- Your lawyer can challenge invalid, excessive, or untimely liens.
- Pennsylvania’s “Made Whole Doctrine” sometimes limits how much a health insurer can recover if your damages are not fully compensated.
- Attorneys may negotiate with providers to accept less than the full billed amount, especially when the settlement is lower than the total medical charges.
Your lawyer’s negotiation can mean a difference of thousands of dollars in your pocket. Proper handling of liens also prevents future collection efforts or legal issues once the settlement is finalized.
Transparency in the Process
You will receive a detailed breakdown before any money is distributed. This will show the gross settlement amount, all liens and claims paid, attorney’s fees, case costs, and your final net recovery. If you have questions or concerns about a specific bill or claim, your legal team should address them directly and promptly.
Why This Matters
If liens and subrogation claims are ignored or mishandled, you could face lawsuits from providers or insurers after your case is closed. The right lawyer will ensure every lien is verified, negotiated, and paid appropriately, protecting your interests and maximizing your financial recovery.
Can't I Just Handle the Insurance Claim Myself?
Injury victims who hire a lawyer receive settlements that are, on average, 3.5 times higher than those who handle claims alone.
Insurance companies train their adjusters to pay out as little as possible. When you bring in a law firm, you instantly level the playing field and protect your interests at every step:
- Maximize Your Recovery: Lawyers uncover every dollar you’re owed, ensuring no damages—medical bills, lost wages, future care—are left out.
- Shield You From Mistakes: Every conversation, form, and deadline is handled for you, so you don’t lose out on technicalities or paperwork errors.
- Aggressive Negotiation: Your attorney pushes back against lowball offers and brings hard evidence to demand top value for your claim.
- Account for the Future: Legal teams fight for compensation that matches not just your needs today, but the rising costs you’ll face in years ahead.
Handling a claim yourself almost always means leaving money on the table. With healthcare costs climbing, that difference can decide whether your settlement truly covers your recovery.
What to Expect When You Contact Our Firm
Your First Conversation is Free and Confidential
The first step is a free consultation. This is a no-pressure conversation where we listen to what happened to you and provide an honest assessment of your legal options.
There is no obligation to hire us. The goal is to give you the information you need to make the best decision for you and your family.
A Clear, Written Agreement
If you decide to move forward with our firm, we will review the contingency fee agreement with you in detail.
This legal document will clearly outline:
- The exact percentage of the fee.
- How case costs are managed and reimbursed.
- The scope of our representation.
Transparency is paramount. We want you to feel confident and informed before signing anything. The legal system has rules in place that govern how attorney's fees are handled, ensuring a regulated process.
Common Questions About Personal Injury Lawyer Costs
What is the statute of limitations for a personal injury claim in Pennsylvania?
In Pennsylvania, you generally have two years from the date of the injury to file a lawsuit, according to 42 Pa. C.S.A. § 5524. However, if your claim is against a government entity, you may need to provide notice within just six months. It is important to speak with a lawyer as soon as possible to protect your rights.
Does the contingency fee percentage change if my case goes to trial?
In some cases, yes. The fee agreement may specify a higher percentage if the case must be litigated in court and go to trial. This reflects the significant increase in time, work, and resources required for litigation compared to an early settlement. This will be clearly defined in your agreement from the start.
Are there other payment options besides a contingency fee?
While less common for personal injury, some lawyers may work on an hourly basis. These rates can range from $150 to over $500 per hour. However, the contingency fee model is the standard because it provides the most benefit and least risk to the injured person.
Are the lawyer's fees tax-deductible?
According to the IRS, the portion of your settlement that covers medical expenses and pain and suffering is generally not taxable. Because the attorney's fee is paid from the settlement, it is not a separate expense you can deduct. We can discuss the specific tax implications for your situation.
If my case is successful, do I get a check for the full settlement amount?
The settlement check is typically sent to the law firm. We then use that to pay the agreed-upon attorney's fees, reimburse the advanced case costs, and pay any outstanding medical liens or bills. You then receive the remaining balance. We provide a detailed statement showing exactly where all the money went.
You Deserve Answers. We’ll Help You Find Them
Your energy should be focused on one thing: your recovery. Let us handle the complexities of the legal process.
You do not have to let financial worries prevent you from seeking the compensation you need to move forward.
For a free and confidential conversation about your case, call the team at Leonard Hill - Personal Injury Lawyers And Car Accident Lawyers today at (215) 567-7600.