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How Much Do Car Accident Lawyers Take From a Personal Injury Settlement in Texas?

In Texas, injury lawyers typically work on a contingency fee structure that grants them 33.33% of the total recovery if the case settles without litigation, 40% if it settles during litigation, and 45% if the case must go up on appeal. The attorney’s fee is in addition to reimbursement for expenses incurred in prosecuting the claim.

While the above percentage is very common, you should know your fee may be different based on several factors including your attorney’s contract, the type of case, the timing of the settlement agreement, and your attorney’s individual policies on fee reductions. Thus, having a discussion with your attorney about how she handles these factors is wise before you sign the contract.

man with questionsThe Attorney-Client Contract

If a dispute arises, the attorney-client contract is what will ultimately determine what fee is owed on a recovery and how much a car accident lawyer takes from a settlement. Thus, the first thing you need to do is read and understand the contract and what it says about the fees. There should be a contract section dedicated to this which explains the above percentages if it is a contingency fee agreement. Beware that there is no law that requires any attorney to follow the above percentage rates. Some attorneys may charge 40% regardless of when it settles or have higher rates for litigation. For medical malpractice, fees of 40-45% are not uncommon due to the complexity and risk involved. Do not forget that you must also reimburse their expenses out of any settlement on top of the above percentage that is taken off the total recovery.

Type of Case May Affect What a Lawyer Takes from a Settlement

Attorneys may offer different contracts and rates depending upon the type of the case. Sometimes this is due to a rule of law and sometimes it is a matter of choice. Certain cases, such as cases against the federal government have specific statutes that limit the attorneys fees In the case of suing the federal government, the maximum fee is 25% under the Federal Tort Claims Act. Additionally, there are some cases where the court sets the attorney’s fee at some point during the case. Class actions and certain mass tort claims fall under this type of case. The fees may range from 10%-40% depending upon the court and the case.

Conversely, the attorney may set the fees at a higher rate in cases where a large amount of money must be invested and risked to pursue the case or where the case is so time-consuming he will miss out on other opportunities. Medical malpractice lawyers commonly charge a higher percentage for complex medical malpractice claims in Texas.

Timing of the Settlement May Affect What a Car Accident Lawyer Takes From a Settlement

The timing of a settlement may affect how much a car accident lawyer takes. A lawyer sometimes agrees to reduce their fees if the case does not require as much work. Say, for example, they file a lawsuit which means the fee jumps to 40%. But, as soon as it is filed they receive a settlement offer. In situations like these, it is not uncommon for us to agree to keep the fee at the lower 33.33% since we did not do more in litigation than file the suit itself.

Your Attorney’s Individual Policies on Fee Reductions

In reality, you never fully recover all of your damages in a personal injury claim. There are two reasons for this. First, you will always lose that percentage of your damages that you must pay to your attorney since Texas law does not allow recovery of attorney’s fees from the negligent party. Second, financial factors such as the maximum policy limits or risk of trial vs accepting a settlement typically result in you settling for less than your complete damages.

So, to try to put more in your pocket, your attorney will typically try to negotiate the hospital liens, outstanding medical bills from providers with a letter of protection, and insurance subrogation liens on your behalf so that you pay them less and you get more. Many of these debtors who have a claim against your recovery are more willing to reduce their balances if your attorney also agrees to reduce his fee. Thus, a key question to ask your prospective lawyer is how he handles the situation where the outstanding bills and his fees exceed the recovery. Otherwise, you could find yourself in a situation where the entire settlement goes to paying the lawyer and the medical providers.

Talk To an Experienced Car Accident Attorney

At Simmons and Fletcher, P.C., we work on the typical 33.33-45% attorneys fee contract. About 80% of our cases are resolved during the lowest fee timeframe–without litigation. Less than 1% ever go up on appeal. Additionally, our firm policy is that when a case settles, we don’t charge you more in attorney’s fee than we put in your pocket. Talk to the Christian trial lawyers at Simmons & Fletcher today by calling 800-298-0111.

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Simmons and Fletcher, P.C., rooted in Christian values, exclusively handles personal injury cases, advocating for the rights of accident and negligence victims. Our Houston-based team, dedicated to compassion and excellence, handles cases across car accidents, motorcycle accidents, truck accidents, slip and falls, dog bites, and other types of cases with a commitment to personalized care. Upholding integrity and client-focused service, we strive for impactful legal outcomes. For a detailed understanding of our approach and team, visit our attorneys page.

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