Nothing up front. Personal injury lawyers work on a contingency fee: a percentage of the recovery, paid only if there is one. At Owsley Law Firm the consultation is free and there is no fee unless the firm wins.
A contingency fee means the lawyer is paid a percentage of what is recovered, at the end, from the recovery itself. If there is no recovery, there is no attorney’s fee. The percentage and how case expenses are handled are set out in a written agreement before the firm is retained, as Texas rules require.
Case expenses are separate from the fee: crash reports, medical records, expert witnesses, filing fees, and depositions. Most firms advance these and recover them from the settlement. The agreement says how.
The arrangement aligns incentives. The firm is paid more when the client recovers more, and it bears the risk of a case that does not succeed. It also means people who could never afford hourly rates get the same representation an insurance company pays for.
Ask any lawyer three things before signing: the percentage, whether it changes if suit is filed, and how expenses are handled. Owsley Law Firm answers all three in writing.
Texas ethics rules govern what a fee agreement must say. Under Rule 1.04(d) of the Texas lawyer ethics rules, a contingent fee agreement must be in writing and must state how the fee is determined, including the percentages that apply if the matter settles, is tried, or is appealed. It must also say which expenses will be deducted and whether they come out before or after the fee is calculated. That last point can change a client's net recovery, so it is worth reading closely.
The rules also require a closing statement when there is a recovery. It shows the total, the fee, each expense, and what is paid to the client, so the client can see exactly where the money went. If a lawyer will not put those items in writing, that alone is a reason to keep looking.
Ask what happens to expenses if there is no recovery. Some agreements waive them and some do not, and the difference matters on a case that fails. Also ask who pays for medical records, experts, and filing fees while the case is pending, since a firm that advances them is taking on risk that the client is not.
Liens are a cost that comes with the recovery, not the lawyer. Hospital liens under Property Code Chapter 55 and reimbursement claims from health plans are usually paid from the settlement, and a lawyer's work in reducing them is part of what the fee pays for. A good lawyer will estimate them at the outset and give you a real picture of the net.
Mistakes that cost people money
- Signing with the first lawyer who calls you instead of comparing terms in writing.
- Not asking whether the percentage rises if a lawsuit is filed.
- Not asking whether expenses are deducted before or after the fee is calculated.
- Assuming a free consultation means the firm will take every case.
Related questions
Do I owe anything if I lose?
It depends on the agreement. Most contingent agreements mean no attorney's fee if there is no recovery, and some also waive expenses. Ask for the answer in writing before you sign.
Can I change lawyers mid-case?
Yes. A client can discharge a lawyer at any time, though the prior lawyer may be entitled to be paid for work performed, depending on the agreement. Read the termination terms before signing.
Does the lawyer's percentage come off before or after expenses?
That is set by the fee agreement. Texas Rule 1.04(d) requires the agreement to say. The order can change your net amount, so compare the terms on this point when you evaluate firms.
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