How Contingency Fees Actually Work

Legal document review and analysis for clients by experienced attorneys.

If you’ve been injured in an accident, you’re probably juggling enough already—doctor visits, car repairs, insurance calls, and maybe time away from work. The last thing you want is a surprise legal bill.

That’s where contingency fees come in.

At Canyon State Law, we believe understanding how attorney fees work should feel simple—not stressful. So let’s break it down in plain English.

What Is a Contingency Fee?

A contingency fee means your attorney only gets paid if you win your case or secure a settlement. There are no hourly invoices showing up in your inbox and no large upfront retainer to get started.

In other words: if there’s no recovery, there’s no attorney’s fee.

This structure makes it possible for people to pursue personal injury claims without worrying about how they’ll afford legal representation while they’re already dealing with financial pressure.

How Does the Percentage Work?

Instead of billing by the hour, a contingency fee is a percentage of the total amount recovered in your case. The exact percentage is outlined in your written fee agreement before you move forward so there are no surprises.

For example, if your case settles for $90,000 and the agreed fee is 33⅓%, the attorney’s fee would be about $30,000. The rest of the funds are used to cover case costs (if any) and then go to you.

A good law firm will walk you through real-life examples so you can clearly see how the numbers would play out in your specific situation.

Attorney’s Fees vs. Case Costs: What’s the Difference?

This is where many people get confused, so let’s keep it simple.

Attorney’s fees are the percentage paid to the lawyer for their work.

Case costs are expenses involved in building and pursuing your claim. These might include:

  • Medical record retrieval fees
  • Filing fees with the court
  • Expert witness costs
  • Deposition expenses
  • Accident reconstruction services

Many personal injury firms, including Canyon State Law, advance these costs for you while the case is ongoing. That means you’re not writing checks along the way. If the case is successful, those costs are reimbursed from the settlement. The details of how this works should always be clearly explained in your agreement.

Why Contingency Fees Are Helpful

Contingency fees level the playing field.

Insurance companies have teams of adjusters and attorneys. With a contingency arrangement, you can have experienced legal representation without worrying about paying out of pocket as the case moves forward.

This setup also aligns your attorney’s interests with yours. Since their payment depends on the outcome, they’re motivated to pursue the strongest possible result for you.

And just as important—you can focus on healing instead of watching a billing clock.

Does the Percentage Ever Change?

In some cases, yes. If a case settles quickly, the percentage may differ from a case that requires filing a lawsuit and going to trial. Trials involve significantly more time, preparation, and expense.

But none of this should be a mystery. Your fee agreement will outline how this works, and your attorney should explain it clearly before you sign anything.

If something doesn’t make sense, it’s always okay to ask questions.

What Happens When the Case Ends?

When your case resolves, you’ll receive a settlement statement that shows:

  1. The total recovery amount
  2. Attorney’s fees
  3. Case costs
  4. Any medical liens or outstanding bills
  5. The final amount you receive

Everything is itemized so you can see exactly how the funds are distributed. Transparency matters.

Moving Forward with Confidence

Contingency fees are designed to remove barriers—not create them. You don’t pay upfront, and your attorney only earns a fee if you recover compensation.

At Canyon State Law, we believe clear communication builds trust. If you’re unsure how contingency fees work or want to understand how they would apply to your specific case, we’re here to walk you through it—step by step.

Getting answers should feel empowering. And getting the representation you deserve shouldn’t feel out of reach. Contact our attorneys at Canyon State Law.