One of the first questions people ask after an accident is, “Can I afford a lawyer?” For most personal injury cases, the answer is yes, because injury lawyers typically work on a contingency fee. If you’re searching for a Houston personal injury lawyer and worried about cost, this guide explains exactly what you would and wouldn’t owe.
1. What is a contingency fee?
With a contingency fee, your lawyer’s fee is “contingent” on recovering money for you. There’s no upfront retainer and no hourly billing. If your lawyer obtains a settlement or verdict, the fee is a percentage of that recovery. If there’s no recovery, you owe no attorney’s fee. This is why contingency fee lawyers are sometimes called “no win, no fee” lawyers.
2. What percentage do Texas personal injury lawyers charge?
Percentages vary by firm and by case, but many Texas personal injury agreements set a lower percentage if the case settles before a lawsuit is filed and a higher percentage if the case goes into litigation or trial. That’s because litigation requires far more time, work, and risk for the firm. Always ask for the exact percentages at each stage.
3. What is the difference between attorney’s fees and case expenses?
The fee is what the lawyer earns. Expenses are the separate costs of pursuing the case, such as filing fees, medical record charges, deposition transcripts, and expert witness fees. At Herrera PLLC, we advance these costs for you. If we recover money, expenses are repaid from the recovery. If we don’t, you never pay them back.
When comparing Houston injury firms, ask two questions about expenses:
- whether they are deducted before or after the percentage fee is calculated (this can change what you take home); and
- whether you would still owe expenses if the case is lost. Some firms require repayment either way. We don’t.
4. Who pays my medical bills during a personal injury case?
This is where many people get confused, so it’s worth being clear.
Treatment arranged through our firm
When you don’t have health insurance or can’t afford care, we can connect you with Houston area medical providers who agree to treat you under a letter of protection. That means the provider waits to be paid from your settlement instead of billing you now. If you receive treatment through one of these arrangements and your case does not result in a recovery, you do not owe those providers.
Treatment you received on your own
Medical care you received before hiring us, or care you arranged independently (for example, an emergency room visit, your own doctor, or providers you chose outside our network), is a debt between you and that provider. Those bills are still your responsibility whether or not your case is successful. The good news is that when there is a recovery, we work to include those bills in your claim and often negotiate the balances down, which puts more money in your pocket.
5. What does Texas law require in a contingency fee agreement?
Texas protects clients in contingency fee arrangements. A contingent fee contract for legal services must be in writing and signed by both the attorney and the client. The Texas Disciplinary Rules of Professional Conduct also require the agreement to explain how the fee is calculated, including the percentages for settlement, trial, and appeal, and how expenses are handled. When the case ends, your lawyer must give you a written statement showing the outcome and how the money was distributed.
6. What does a personal injury settlement breakdown look like?
Suppose your case settles for $60,000 before a lawsuit is filed, the agreed fee is one third, and case expenses are $1,500. The fee would be $20,000. After expenses, $38,500 remains, from which any medical bills or liens that must be repaid (such as hospital liens, providers treating under a letter of protection, or health insurance reimbursement claims) are paid before you receive your net amount.
And if that same case had been lost? You would owe no attorney’s fee, no case expenses, and nothing to providers who treated you through our firm.
7. Why do contingency fees work for injured people?
A contingency fee gives everyone access to legal representation, regardless of income. It also aligns your interests with your lawyer’s: the better your outcome, the better the result for both of you. And because your lawyer takes on the financial risk, including the cost of the case, they have every reason to evaluate your case honestly from the start.
8. What should I ask before signing a contingency fee agreement?
Ask what the percentage is at each stage, how expenses are handled, whether the fee is calculated on the gross or net recovery, what you would owe if the case is lost, and how your medical bills will be handled. At Herrera PLLC, we walk every client through the agreement line by line, in English or Spanish, before anything is signed. For more questions to bring to your meeting, see 10 Questions to Ask a Houston Personal Injury Lawyer at Your First Consultation.
Have questions about your case? Call Herrera PLLC at 832.891.3210 for a free consultation with a bilingual Houston personal injury lawyer. Our office is located at 2339 Commerce Street, #172, Houston, TX 77002. You pay no attorney’s fees unless we win or recover for you.
This article is for general information only and is not legal advice. Reading it does not create an attorney client relationship. Case results depend on the facts of each case.
