What Texas Injury Lawyers Really Cost

Estimated Reading Time: 5 minutes

• The Contingency Fee: How It Is Structured
• Case Expenses Are Separate from the Attorney Fee
• How Expenses & Fees Are Deducted from a Settlement
• Medical Liens Can Also Reduce Your Net Recovery
• What You Should Ask Before Signing a Fee Agreement
• How MAS Law Approaches Legal Fees

In Texas, most personal injury lawyers charge nothing upfront. Instead, they work on a contingency fee, meaning they receive a percentage of whatever they recover for you and nothing if they do not. That percentage typically falls between 33% and 40% of the total recovery, depending on how far the case progresses.

If there is no recovery, there is no attorney fee. That is the core of how this works, but understanding what comes out of a settlement before you see it requires a closer look at the full picture.

The Contingency Fee: How It Is Structured

The percentage your attorney receives is not fixed. Most personal injury lawyers use a sliding scale that increases as the case moves through different stages. A common structure looks like this:

• Around 33% if the case settles before a lawsuit is filed
• Around 36% to 40% if a lawsuit is filed and the case moves into litigation
• Up to 40% or higher if the case goes to trial

The reasoning behind this structure is simple. A case that resolves through insurance negotiation requires less attorney time and fewer resources than one that involves depositions, court filings, expert witnesses, and trial preparation.

Under Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct, all contingency fee agreements must be in writing, must clearly explain how the fee is calculated, and must specify whether case expenses are deducted before or after the attorney's percentage is applied.

Case Expenses Are Separate from the Attorney Fee

This is the part of the cost structure that surprises people most. The contingency fee covers the attorney's compensation for their work. It does not cover the out-of-pocket costs required to build and pursue the case. Those expenses are separate, and they come out of the settlement before you receive your share.

Common case expenses include:

• Medical records and police reports: Obtaining certified copies of records involves fees charged by providers, hospitals, and agencies.
• Filing fees: Filing a lawsuit in court typically costs several hundred dollars, and can exceed $1,000 in more complex cases depending on the county.
• Deposition costs: When witnesses are deposed, court reporters, transcripts, and sometimes videographers are required. These costs can add up quickly in cases involving multiple parties.
• Expert witnesses: In cases where liability or the extent of injuries is disputed, expert testimony may be necessary. Medical experts, accident reconstruction specialists, and economic analysts can charge thousands of dollars, sometimes tens of thousands, for their involvement.
• Investigative expenses. Gathering evidence, hiring private investigators, or obtaining surveillance footage carries its own costs.

Most injury firms advance these expenses on the client's behalf and are reimbursed from the settlement proceeds at the end of the case. In cases where there is no recovery, the terms of the fee agreement govern whether the client owes anything for expenses.

How Expenses & Fees Are Deducted from a Settlement

The order in which attorney fees and expenses can vary, and it affects how much a client ultimately receives. Some agreements calculate the attorney's percentage from the gross settlement amount before expenses are subtracted. Others deduct expenses first, then calculate the attorney's fee from what remains. The difference can be meaningful on larger settlements.

Here is an example: Suppose a case settles for $60,000 with $3,000 in case expenses and a 33% contingency fee.

• If fees are calculated on the gross amount, then the attorney receives $19,800 (33% of $60,000), expenses of $3,000 are then deducted, and the client receives $37,200.
• If expenses are deducted first, the net recovery is $57,000, the attorney receives $18,810 (33% of $57,000), and the client receives $38,190.

The written fee agreement should clearly explain which method applies.

Medical Liens Can Also Reduce Your Net Recovery

An additional factor that affects what a client takes home is the presence of medical liens. If your:

• Health insurer,
• Medicare,
• Medicaid, or a
• Medical provider

Paid for treatment related to your injuries, they may have the right to be reimbursed from your settlement proceeds. Your attorney will typically negotiate these liens, which can reduce the amounts owed.

What You Should Ask Before Signing a Fee Agreement

Before retaining any injury attorney in Texas, a few questions are worth asking directly:

• What is your contingency fee percentage at each stage of the case?
• Are case expenses deducted before or after your fee is calculated?
• If we do not recover anything, do I owe anything for case expenses?
• How will medical liens be handled?

A straightforward attorney will answer all of these questions clearly, in writing, before you sign anything. The fee agreement itself should reflect those answers.

How MAS Law Approaches Legal Fees

At MAS Law, we handle personal injury cases on a contingency fee basis. You pay nothing upfront, and we only get paid if we recover compensation for you. We are transparent about our fee structure from the first conversation and walk every client through exactly what their agreement says before representation begins.

If you were injured in an accident in Texas and have questions about your options and what representation would involve, contact MAS Law for a free consultation. We are available 24/7 and can be reached at (866) 328-8433 or online.