One of the biggest concerns people have after an accident is whether they can afford to hire an attorney. Medical bills are piling up, you may be out of work, and the idea of paying a lawyer by the hour on top of everything else can feel impossible. The good news is that virtually all personal injury attorneys, including the team at Burrow & Associates, work on a contingency fee basis. This means you pay no attorney fees upfront and owe nothing unless your case results in a recovery.
This guide explains how contingency fees work, what to look for in a fee agreement, and why this arrangement exists to benefit injured individuals.
What Is a Contingency Fee?
A contingency fee is a payment arrangement in which the attorney’s fee is contingent on the outcome of your case. If your attorney recovers compensation for you through a settlement or court verdict, the fee is taken as a percentage of that recovery. If there is no recovery, you owe no attorney fees.
This structure is fundamentally different from the hourly billing model used in many other areas of law. With an hourly fee, you pay for every phone call, email, and court appearance regardless of the result. With a contingency fee, the attorney assumes the financial risk of taking your case. Their payment depends on their ability to achieve a positive outcome for you.
How the Percentage Is Determined
In Georgia, contingency fee percentages in personal injury cases typically range from 33 percent to 40 percent of the total recovery. The exact percentage can vary depending on several factors, including the complexity of the case, whether the case settles before trial or requires litigation, and the stage at which the case resolves.
A common structure works as follows. If the case settles before a lawsuit is filed, the attorney may take 33 percent of the settlement. If the case requires filing a lawsuit and goes through litigation, the percentage may increase to 40 percent. If the case goes to trial or appeal, a higher percentage may apply to reflect the additional time, resources, and risk involved.
These percentages are governed by Georgia Rule of Professional Conduct 1.5, which requires that all attorney fees be reasonable and that contingency fee agreements be put in writing. The written agreement must specify the method by which the fee is calculated, the percentage that applies at each stage of the case, and whether litigation expenses are deducted before or after the fee is calculated.
What Gets Deducted From Your Settlement
When your case resolves, the settlement or verdict amount does not go directly into your pocket in full. Several deductions are made before you receive your share. Understanding these deductions in advance helps you set realistic expectations about your net recovery.
Attorney fees are the contingency percentage agreed upon in your fee agreement. If you settled for $100,000 and the fee is 33 percent, the attorney’s fee would be $33,000.
Litigation costs and expenses are the out-of-pocket costs your attorney incurred while working your case. These can include court filing fees, costs for obtaining medical records and police reports, fees for depositions and transcripts, charges for accident reconstruction or other specialists, postage, copying, and administrative costs. Some firms advance these costs and deduct them from the recovery. Others require the client to pay them as they arise. At Burrow & Associates, we advance these costs so that our clients do not face any out-of-pocket expenses during the case. You can learn more about the full settlement process on our settlement payout breakdown page.
Medical liens may also be deducted from your recovery. If your health insurance company, Medicare, Medicaid, or a medical provider paid for your treatment, they may have a legal right to be reimbursed from your settlement. Your attorney will negotiate these liens on your behalf to maximize the amount you take home. After all deductions, the remaining balance is your net recovery.
Why Contingency Fees Benefit Injured People
The contingency fee model exists because most people who have been injured in an accident cannot afford to pay an attorney hundreds of dollars per hour while they are simultaneously dealing with medical bills and lost income. Without contingency fees, access to legal representation would be limited to those who could afford it, and insurance companies would have even greater leverage over injured individuals.
Contingency fees also align the attorney’s interests with yours. Because your attorney only gets paid if you get paid, they are motivated to pursue the maximum possible recovery and to work your case efficiently. There is no incentive to drag out the process unnecessarily or to recommend actions that do not serve your best interests.
Questions to Ask Before Signing a Fee Agreement
Before entering into a contingency fee agreement, it is reasonable to ask your attorney several questions to make sure you fully understand the arrangement. What percentage will you charge, and does it change depending on the stage of the case? Are litigation costs deducted before or after the contingency fee is calculated? Who is responsible for costs if the case is unsuccessful? Will I owe anything out of pocket during the case? How will medical liens be handled?
A reputable personal injury attorney will answer these questions clearly and provide you with a written agreement that spells out every detail. If a firm is not transparent about its fee structure, that should be a red flag.
No Fee Unless We Win
At Burrow & Associates, we handle all personal injury cases on a contingency fee basis. You pay no upfront fees, no retainers, and no hourly charges. If we do not recover compensation for you, you owe us nothing. This applies whether your case involves a car accident, a truck wreck, a slip and fall, medical malpractice, or any other type of personal injury claim.
If you have been hurt in an accident in Athens, Duluth, Conyers, or anywhere in Georgia, contact us today for a free consultation. We will review your case, explain your options, and answer any questions you have about our fee structure — all at no cost and no obligation.
