Is the contingency fee taken before or after medical liens?

Typically, the attorney fee is calculated first on the gross settlement, then case costs are deducted, then medical liens are negotiated and paid. Practice varies by firm and state, and the fee agreement should spell out the order. Always read the fee agreement before signing.

What if I switch attorneys mid-case?

The first attorney usually has a lien for the value of work performed, often calculated on a quantum meruit basis. The replacement attorney negotiates how the fee will be split so the client is not charged twice. You are entitled to your file.

Fees

How contingency fees work.

The percentage every personal injury firm advertises, with the math, the carve-outs, and the lines to read carefully.

The standard structure

Pre-suit settlement: 33% of gross recovery.
Filed lawsuit: 40% of gross recovery.
Appeal: often 45%.
Case costs: separate, ranging from a few hundred dollars in simple cases to tens of thousands in litigated medical malpractice or trucking cases.

Worked take-home example

Gross settlement: $60,000 in a pre-suit car accident claim.

Attorney fee (33%): $19,800
Case costs (records, postage, mediator): $1,200
Outstanding medical liens, negotiated: $9,000
Client take-home: $30,000

What to read carefully in a fee agreement

Fee percentage tiers. When exactly does the percentage step up?
Order of deductions. Fee on gross or on net of costs? It matters.
Case costs. Who fronts them, and what happens if there is no recovery?
Lien handling. Who negotiates medical liens and how is the result allocated?
Termination. What happens if you or the firm ends representation?

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For the math behind the gross settlement number itself, see how settlements are calculated.