What percentage do attorneys typically receive in a settlement
A personal injury settlement in the United States is typically subject to an attorney fee of 33⅓% to 40% under a contingency-fee agreement. One-third is common when the case settles before a lawsuit is filed. The fee may increase to 40% if the attorney files a lawsuit, conducts discovery, or takes the case toward trial.
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There is no nationwide standard percentage. The rate depends on the type of case, state rules, the lawyer's fee agreement, and how far the case progresses.
Typical Attorney Percentages on a $100,000 Settlement
| Contingency percentage | Attorney's fee | Amount remaining before costs |
|---|---|---|
| 33⅓% | $33,333 | $66,667 |
| 40% | $40,000 | $60,000 |
| 50% | $50,000 | $50,000 |
These figures do not include litigation expenses, medical liens, insurance reimbursement claims, or other deductions that may apply.
Is the Percentage Calculated Before or After Costs?
The fee agreement should say whether the attorney's percentage is calculated before or after case expenses. That choice changes how much the client receives.
Assume the settlement is $100,000 and case expenses total $5,000.
Costs Deducted After the Attorney's Fee
- Settlement: $100,000
- Attorney receives one-third: $33,333
- Case expenses: $5,000
- Client receives approximately: $61,667
Costs Deducted Before the Attorney's Fee
- Settlement: $100,000
- Case expenses: $5,000
- Amount used to calculate the fee: $95,000
- Attorney receives one-third: $31,667
- Client receives approximately: $63,333
The American Bar Association's Model Rule on fees treats the handling of expenses as a term that should be addressed in the written agreement.
Can an Attorney Charge a Higher Percentage if the Case Goes to Trial?
Yes. Many contingency-fee agreements use different percentages based on the stage of the case. For example, an agreement might provide:
- 33⅓% if the case settles before a lawsuit is filed
- 40% if a lawsuit is filed
- A higher percentage if the case proceeds through trial or appeal
A higher rate reflects the additional time, preparation, expenses, and risk involved in litigation. The fee schedule should be agreed upon before the attorney begins representation. State rules may also affect what the agreement can provide.
What Expenses Are Separate From the Attorney's Percentage?
The contingency percentage generally pays the attorney for legal services. Other case expenses may be deducted from the recovery, including:
- Court filing fees
- Medical records and investigation costs
- Deposition and court reporter fees
- Expert witness fees
- Evidence-gathering costs
The written agreement should explain which expenses will be deducted from the settlement and whether the client may owe those expenses if the case produces no recovery. The ABA Model Rule on contingency fees addresses these terms.
Medical liens and health-insurance reimbursement claims can also reduce the client's payment. Those obligations are separate from the attorney's fee.
Do All Settlement Lawyers Use Contingency Fees?
No. Contingency fees are most common in cases seeking monetary damages, including personal injury claims and some workers' compensation matters. Other lawyers may charge by the hour, use a flat fee, or negotiate a combination of fee arrangements.
Contingency fees are restricted or prohibited in some matters. The ABA Model Rule prohibits contingency fees for representing a criminal defendant and for certain domestic-relations matters, although the specific rules depend on the jurisdiction.
What Should Your Agreement With the Attorney State?
It should state:
- The percentage that applies to a settlement, trial, and appeal.
- Whether the percentage applies to the gross settlement or the amount left after expenses.
- Which litigation costs you may owe.
- Whether you owe expenses if the case is unsuccessful.
- How medical liens, insurance claims, and other repayment obligations will be handled.
- Whether another attorney or referral lawyer will receive part of the fee.
The ABA Model Rule states that a contingency-fee agreement should be written and signed by the client. It should explain how the fee is calculated, what percentages apply at different stages, and how expenses are handled.
Bottom Line
For a typical U.S. personal injury settlement, an attorney's contingency fee is often about one-third to 40% of the recovery, plus possible case expenses. Check two details before signing: whether expenses are deducted before or after the fee is calculated, and whether the percentage increases after a lawsuit is filed.
Your signed fee agreement controls, subject to applicable state law. This article provides general legal information, not legal advice for a specific settlement.