Call Now - Open 24/7
888-521-6377
Latest update

What Is a Contingency Fee and How Does It Work?

Lawyer in a blue suit talks on a phone at a desk with coffee and papers.

After you’ve been injured and are wondering if you can afford legal assistance, one question hits fast: How much does a personal injury lawyer cost in Phoenix, Arizona, and can I afford one? As medical bills continue to pile up and going back to work seems uncertain, additional expenses aren’t something you need.

Here’s what most people don’t realize — many law firms work on a contingency fee these days, which means a client does not pay any upfront service costs; the hired bicycle accident lawyer in Phoenix is paid only if they win the case. No recovery — no attorney fee.

What Does ‘No Win, No Fee’ Mean for You?

A no-win, no-fee personal injury arrangement means exactly what it sounds like: your lawyer only gets paid if they recover money for you. Simply put, a contingency fee personal injury agreement implies that your lawyer does not charge upfront fees and does not have an hourly or any other type of fixed rate to worry about.

So, how can you cover the personal injury lawyer cost? Every legal professional sets their terms, which are discussed individually but always reflected in detail in the retainer agreement. If the case resolves in your favor, the attorney will receive a set percentage of the compensation amount.

Your attorney will invest their time, staff, and resources to build a strong case without charging you in advance. Such a fee structure aligns their interests with yours and enables injured people to get legal help without financial risk.

Typical Contingency Fee Percentages in Phoenix

Before you rush to assume that a personal injury lawyer’s percentage of the final compensation amount depends on individual preferences or the skills of the expert, you should know that the American Bar Association limits the contingency fee percentage to 33%–40% of the case’s worth.

So, what is the personal injury lawyer cost in Phoenix, Arizona? The fairest answer would be that it primarily depends on the case complexity. Typically, a 33% contingency fee is the most common starting point for straightforward cases that settle out of court. The stakes get higher if the claim becomes a lawsuit and goes to trial or if the case is appealed.

To give you a clearer idea of how the contingency-fee basis works, let’s review two examples:

  1. $90K settlement at 33% = $30K attorney fee, $60K to you (before expenses).
  2. $100K trial verdict at 40% = $40K fee, $60K to you (before expenses).

Important: ‘Before expenses’ means that additional case costs, such as court fees, expert expenses, record retrieval fees, etc., are covered separately by the plaintiff.

Note: The service fee percentage should be clearly stated in the agreement signed by both parties. However, some firms use a so-called sliding-scale approach, meaning the percentage can increase if the case requires litigation. You need to read the agreement carefully before signing it.

How Does Case Complexity Affect Your Fee?

It is the case complexity that pushes the contingency higher or keeps it at an average level. Speaking in simple terms, the more work, risk, and time your lawyer has to invest in the case, the higher its cost.

For instance, imagine you’ve been rear-ended in Phoenix, and the other party’s liability is clear (the driver was texting behind the wheel and didn’t notice the red light). You’ve sought immediate medical assistance so that your injuries are well documented. The chances are that the insurance will accept the fault and settle the case without lengthy negotiations. The contingency fee will stay at 33%.

However, if there’s medical malpractice, product liability, or multiple at-fault parties, the attorney may request a 40% contingency fee. Cases like that often require expert testimony, reconstructions, witnesses, detailed investigations, depositions, and possibly a trial. Not to mention that there’s a potential trial in sight, which usually affects personal injury trial fees because of the higher workload and risk.

Attorney Fees vs. Case Expenses: What Else Will You Pay?

Now that you understand how the contingency fee personal injury agreement works and what percentage of the settlement the legal representative gets, you may assume that the rest of the compensation is yours. However, many plaintiffs do not realize that there are costs beyond attorney fees. Every claim comes with a fair share of separate expenses. The better you understand these, the easier it will be to calculate how much of your recovery you keep.

Common Case Expenses in Personal Injury Claims

Usually, personal injury case expenses cover the cost of investigating the situation, gathering evidence, and filing a claim or lawsuit. Most injured cyclists remain unaware of these costs because the law firm advances them upfront. Typically, these expenses include, but are not limited to, the following:

  • Court filing fees for personal injury: Range between $200–$400 in Arizona
  • Expert witness fees for personal injury: $1K–$5K+, depending on the number of specialists involved
  • Medical and police record retrieval: Usually costs between $50–$500
  • Deposition and transcript charges: $500–$2,000 per deposition
  • Trial exhibits, investigation costs, postage, and administrative expenses: In a typical pre-trial case, these expenses could total $500–$3K.

Because the law firm initially covers these expenses, many victims mistakenly assume they are included in the contingency fee. However, these are the plaintiff’s out-of-pocket expenses. Thus, they are reimbursed from the final settlement, so you had better discuss them along with your personal injury attorney’s fees beforehand.

Are Expenses Deducted Before or After the Attorney’s Fee?

Personal injury lawyer expenses can be deducted both before and after the case expenses. Most people think that the order plays no major role. However, that is not true. See for yourself:

  1. Method 1 — case costs first:

  • $100K settlement – $5K case expenses = $95K
  • 33% contingency fee of $95K = $31,350
  • Client receives: $63,650

  1. Method 2 — case costs after:
  • $100K settlement – 33% contingency fee = $33,333 attorney fee
  • $100K − $33,333 − $5K = $61,667
  • Client receives: $61,667


As you can see, the difference is nearly $2,000 that you pay out of your pocket.

The deduction order also affects your financial recovery. Since you do not want to leave any of your take-home money on the table, you should point out in your retainer agreement that you want additional expenses deducted before the contingency fee.

What Happens to Your Settlement Check?

After both parties agree to a settlement, the insurance company releases a corresponding settlement check. However, the check isn’t sent directly to your account. It is issued to your lawyer instead. This is done for legal reasons and to ensure proper disbursement of settlement funds. Here’s a list of stages a compensation check usually goes through:

  • The insurance company sends the money to your lawyer
  • The attorney puts it into an escrow account
  • If there is a lien involved, for instance, with a health insurer, the costs are deducted from the trust account first
  • Then the lawyer takes a percentage of the settlement
  • The remaining balance is sent to the client’s account

To ensure there are no suspicious charges or unauthorized deductions from your compensation, ask your legal representative for a detailed statement and track all transactions.

Can You Negotiate Personal Injury Lawyer Fees?

You can save as much as $7K in personal injury settlement fees from a $100K compensation by negotiating a lower percentage, dropping it from 40% to 33%. Although a dramatic decrease is not always possible, there is certainly room for negotiation.

When Is Negotiation Realistic?

There are a few typical scenarios when you can negotiate personal injury attorney fees:

  • Scenario 1: The liability is crystal clear, say, the other driver fully admitted their fault. Cases like that are less risky to deal with, so a personal injury lawyer’s percentage can drop.
  • Scenario 2: You’ve done a fair share of the investigation and obtained most of the critical evidence that supports your case. The attorney’s workload reduces, so can the fee.
  • Scenario 3: You have a solid claim and are aiming at a substantial settlement. Even a reduced contingency fee will bring the legal representative a fair amount of compensation.

Keep in mind, sometimes you can’t negotiate the contingency fee of an injury lawyer because of their individual firm policies. However, it never hurts to try.

Practical Tips for Negotiating With Your Lawyer

If you decide to try to negotiate personal injury attorney fees, you may want to use one of these practical tactics:

  1. Propose an individual sliding scale: Ask for 30% on the first $100K of the settlement and a standard rate applicable to anything above that.
  2. No-trial reduced rate: If you are sure your claim won’t transform into a lawsuit, you can ask for a lower contingency fee if the case resolves outside the courtroom.
  3. Negotiate early: If you feel the suggested fee is a bit too high, discuss it with the lawyer before you sign a retainer agreement.
  4. Compare your options: Two law firms in Phoenix may offer different fee structures for the same services.

Remember that a lower fee may not equal a successful case. That is why, as you review the lawyer’s service costs, pay attention to their settlement track record.

Is Hiring a Personal Injury Lawyer Worth the Cost?

After you’ve learned how much a personal injury lawyer costs in Phoenix, you may wonder if their service percentage is really worth it. The settlement statistics indicate that represented plaintiffs receive average settlements that are three times higher than those of unrepresented plaintiffs. A committed lawyer can calculate the full extent of the losses, negotiate fiercely with the insurance company, and access evidence you may not know exists so that you receive the maximum possible reimbursement.

What Does the Data Show About Representation and Settlement Value?

Insurance industry studies indicate that injured people with legal representation receive settlements up to three times higher than those who handle their claims alone. The compensation is calculated with personal injury lawyer fees already deducted.

Here’s a simple example. Imagine the insurance company offers you $18K to settle. You are willing to accept the bicycle accident settlement because it sounds quite reasonable. However, you would definitely change your mind when you learn that with a lawyer at your side, you can recover $50K. Even with the personal injury attorney fees of 33% ($16,500), you would still be able to recover almost twice the initial offer — $33,500.

You may think that such an artificially low offer would mean that an insurer is breaking the law. In truth, insurance adjusters are allowed to negotiate lower compensation to protect the company’s funds. So, technically, if you accept a lowball settlement offer, it is your legal choice.

Attorneys, in turn, know how to calculate damages in full, including future medical care, lost wages, reduced earning capacity, and pain and suffering. They also know how to deflect all the insurers’ strategies and techniques.

Even though the cost of hiring a personal injury lawyer may seem unreasonable, chances are you will earn more than you lose. Let’s not forget the contingency fee, which means you don’t pay anything upfront.

Why Does Acting Quickly Protect Your Case and Compensation?

Every state, including Arizona, has its own statute of limitations that governs when the clock starts ticking after an accident and how much time you have to file a claim and recover your losses. To save you the trouble of guessing, it starts the day of the crash, not the day you introduce a lawyer to the case.

Evidence Disappears Faster Than You Think

A case is as strong as the evidence that supports it. Critical proof that can either make or break your case disappears faster than you think:

  • Security or dashcam footage: It is often overwritten within 3 to 14 days, depending on the device. Some systems can be preset to delete data every 48 hours.
  • Witness memory: People’s minds tend to delete the ‘files’ they do not use, and someone else’s accident may not be the most critical detail on the eyewitness’s mind, especially days or weeks after the collision.
  • Physical evidence: Skid marks wash away, debris is cleared, and road damage can be repaired a few days after the crash. Your claim weakens with every bit of proof disappearing.
  • Medical records: The sooner your injuries are reported, the easier it is to connect them to the accident. Besides, it becomes more challenging for an insurance adjuster to argue the severity of the sustained trauma or its connection to the accident.

As you can see, even though the official claims deadline under Arizona’s statute of limitations (A.R.S. § 12-542) is two years from the date of the accident, the deadline for preserving evidence is much shorter. Not to mention that the state abides by the pure comparative fault rule, which means that the defendant’s side will use every gap available to reduce the bicycle accident compensation you receive.

The bottom line is — the sooner you contact a law firm for a free consultation and professional help, the sooner your personal injury lawyer in Phoenix will start gathering critical evidence that will help them build a solid, success-oriented case.

Get a FREE case evaluation today

If you’re a cyclist who has been in an accident, call today for a free initial consult about your legal claim. We’re here to help and offer coast-to-coast representation.

Call us now at:
888-521-6377

Start Your Free Consultation

Supply a few simple details about your injury and our team will take it from there.

First Name
Start Your Free Consultation
Last Name
Start Your Free Consultation
E-mail
Start Your Free Consultation
Phone
Start Your Free Consultation
Which state did the accident occur in? Which state did the accident occur in?
  • Which state did the accident occur in?
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
What was the date of the accident?
Message
Start Your Free Consultation

We will do our best to reach you as soon as possible.

For urgent queries please call
888-521-6377
Start Your Free Evaluation