No Fee Unless We Recover: How Contingency Fees Actually Work

A contingency fee is a fee that is contingent on results. Instead of billing you for time, the firm agrees to take a percentage of whatever is recovered for you, whether by settlement or verdict. If the case recovers nothing, the firm's fee is nothing.

This is standard in personal injury, wrongful death, and many insurance claim cases. It is the reason an individual with no savings can take on an insurance company with unlimited resources.

Florida takes contingency fees seriously. The Florida Bar's rules on fees set maximum percentages for personal injury and wrongful death cases, and the percentage generally steps down as the recovery gets larger. The rules also distinguish between cases that resolve before a lawsuit is answered and cases that go further into litigation, with a higher permitted percentage for the latter because the work is greater.

Every contingency agreement must be in writing, signed by you and the lawyer, and it must be accompanied by the Statement of Client's Rights for Contingency Fees. That document explains, in plain language, what you are agreeing to and what you can expect.

You also have the right to cancel the agreement within three business days of signing without owing a fee. Take that time to read it.

The attorney's fee is the percentage. Costs are the out-of-pocket expenses of building a case: medical records, crash reconstruction, expert witnesses, court filing fees, depositions. Costs are separate from the fee.

Firms handle costs differently. Ask three questions before you sign: Who advances costs while the case is pending? Are costs deducted before or after the fee percentage is calculated? What happens to costs if there is no recovery? At Sunshine State Law Firm we advance case costs and walk you through exactly how they are handled before you sign anything.

When a case settles, the funds go into the firm's trust account. From there, in a typical case, the attorney's fee is calculated, case costs are reimbursed, and any medical liens or bills that must be paid from the recovery are resolved. What remains goes to you. You receive a written settlement statement showing every line.

Good firms work hard on the lien step. Negotiating medical liens down can meaningfully increase what ends up in your pocket, and it is part of the job.

The incentives line up. We only get paid when you get paid, and we get paid more when we recover more for you. That means we have every reason to investigate thoroughly, document your injuries properly, and refuse lowball offers. The insurance company knows we can afford to go to trial, which changes the negotiation.

It also means we are selective. When we take a case, it is because we believe in it.

Every case at Sunshine State Law Firm begins with a free, confidential case review. We will tell you honestly whether we think you have a claim, what the process looks like, and exactly how our fee works. There is no obligation and no fee unless there is a recovery.

Call (844) SUN-SHINE any time. Hablamos Español.