Almost nobody hiring a personal injury lawyer pays an hourly rate or a retainer. Injury cases run on contingency fees, which means the lawyer is paid a percentage of what they recover for you and nothing if they recover nothing. That is the short version. The details — what percentage, what counts as an expense, what comes out first — are where people get surprised, so here is the whole picture.
The short answer
A personal injury lawyer costs you nothing up front. The fee is a percentage of the recovery, commonly around one third if the case settles before a lawsuit is filed and higher — often 40 percent — if suit has to be filed and the case is litigated. Case expenses such as filing fees and records are separate from the fee. If there is no recovery, there is no fee. Consultations are free.
How a contingency fee actually works
You sign a written fee agreement at the start. Texas requires contingent fee agreements to be in writing and signed by the client, and the fee has to be reasonable under the Texas Disciplinary Rules of Professional Conduct. That agreement states the percentage, how expenses are handled, and what happens at each stage of the case.
When the case resolves, the settlement is paid to the law firm’s trust account. From there the fee, the case expenses, and any medical liens or reimbursement claims are paid, and the balance goes to you along with a written settlement statement itemizing every line. You should see that statement and understand it before you sign off.
Why the percentage changes if suit is filed
It reflects the work and the risk. A claim resolved with the adjuster involves records, a demand, and negotiation. A filed lawsuit adds pleadings, written discovery, depositions, expert witnesses, mediation, motions, and possibly a trial — often a year or more of additional work and tens of thousands of dollars in expenses the firm fronts. A well drafted agreement tells you exactly when the higher tier kicks in, and that is a question worth asking before you sign.
Fees versus expenses — not the same thing
The fee is the lawyer’s compensation. Expenses are the hard costs of building the case: medical records and billing affidavits, the crash report, filing fees, service of process, court reporters and deposition transcripts, expert witness fees, accident reconstruction, exhibits, and mediation fees. Most firms advance these and are reimbursed from the recovery.
The critical question is whether the fee percentage is calculated on the gross recovery before expenses are deducted or on the net after. That single choice changes your take home number, and it is spelled out in the agreement. Ask.
What happens if you lose
You owe no attorney’s fee. Whether you owe advanced case expenses depends entirely on the agreement — many firms absorb them when there is no recovery, and some do not. Get a straight answer in writing rather than assuming. Separately, unpaid medical providers who treated you are still owed regardless of the outcome of the case, which is a different obligation from anything you owe the lawyer.
Does hiring a lawyer actually leave you with more?
It is the fair question: if a third comes off the top, are you better off? Usually yes, for three reasons. Represented claims are generally valued higher by insurers, because the alternative to a reasonable offer is a lawsuit. A lawyer finds coverage an unrepresented person misses — underinsured motorist coverage, a commercial policy, an employer’s liability, an umbrella policy. And the negotiation of hospital liens and health plan reimbursement at the end frequently recovers more than people expect, sometimes several thousand dollars that would otherwise have gone to a lienholder. The honest exception is a very small claim with minor injuries, clear liability, and no dispute — that one you may reasonably handle yourself.
What to ask before you sign
What is the percentage, and at what point does it increase. Is the fee calculated on the gross or the net. Am I responsible for case expenses if we lose. Who will actually handle my case day to day. Will you negotiate my medical liens at the end, and is that included in the fee. Will I see a written settlement statement before anything is disbursed. A lawyer who is uncomfortable answering any of those is telling you something.
A note on referral fees
Some firms sign cases and hand them to another firm. Texas rules permit fee sharing between lawyers in different firms only with the client’s written consent after disclosure, and the split has to be proportional to the work performed or based on joint responsibility. If you are asked to consent to a fee division, you are entitled to know who is doing the work and why.
Frequently asked questions
How much does a personal injury lawyer cost in Texas?
Nothing up front. Personal injury lawyers work on contingency, taking a percentage of the recovery — commonly about one third if the case settles before suit is filed, and often 40 percent if a lawsuit is filed and litigated. If there is no recovery, there is no fee.
What is a contingency fee?
It is a fee paid as a percentage of the money recovered rather than by the hour. Texas requires the agreement to be in writing and signed by the client, and the fee must be reasonable. It lets people with no money hire counsel against an insurer that has unlimited resources.
Do I have to pay case expenses if I lose?
That depends on your fee agreement. Many firms absorb advanced expenses when there is no recovery and some do not, so ask before signing and get the answer in writing. You owe no attorney’s fee if there is no recovery.
Is the fee taken before or after medical bills are paid?
The attorney’s fee is normally calculated on the recovery, and medical liens and provider balances are paid from the remainder along with case expenses. Whether the fee is figured on the gross recovery or on the net after expenses is set by the fee agreement, so it is worth confirming.
Is a free consultation really free?
Yes. Injury consultations are free and carry no obligation, and no fee is owed unless and until there is a recovery.
Find out where you stand at no cost
If you were hurt in a Houston crash, call Blass Law at (713) 664-4000 or request a free case evaluation. We will explain exactly how the fee works before you sign anything, in plain language. See also what your car accident case is worth and our Houston car accident lawyer page.
Reviewed by Jay Blass Cohen, founder of Blass Law PLLC — ACS-CHAL Forensic Lawyer-Scientist, certified Drug Recognition Expert, and SFST instructor, serving Houston since 2009. This article is general information, not legal advice for your situation. Prior results do not guarantee a similar outcome.