The Short Answer:
Car accident lawyers in Massachusetts typically handle cases on a contingency basis, which means that there’s no fee unless you win. Typical legal fees range from 33.3% to 40% of the total recovery depending on the complexity of the case and whether it goes to court. Filing fees and other charges will also be deducted from the compensation that you receive based on actual costs.
Key Takeaways
- Most car accident lawyers work on a contingency basis known as no-win, no-fee.
- Massachusetts rules of professional conduct require all billing agreements to be signed upfront.
- Typical legal fees range from 33.3% to 40% of the total recovery.
- In some cases, fees may be lower for settlements and higher for cases that go to court.
- Accident victims are responsible for court costs and fees if the case is successful.
- Contingency billing reduces the financial risk and burden of hiring an attorney.
- Flat-rate and hourly billing are used by some lawyers, but they aren’t common in personal injury law.
Table of Contents
What Is Contingency Billing?
Contingency billing is a common fee agreement used in personal injury law and car accident cases. Essentially, your attorney’s payment is contingent upon them recovering compensation through a settlement or verdict. If your claim isn’t successful, your attorney doesn’t get paid. That’s why car accident lawyers often advertise their services as “No Win, No Fee.” Here are a few key characteristics of contingency billing:
- There are no upfront charges or retainers to hire the attorney.
- You will not receive monthly bills for your lawyer’s time.
- Attorney’s fees are a pre-determined percentage of the total money recovered in your case.
When Does Your Car Accident Attorney Get Paid?
In most cases, your car accident attorney gets paid at the very end of your case. Once a settlement has been negotiated with the insurance company or the court has awarded a verdict, the funds are sent to your attorney’s office.
The attorney deducts their fees as agreed from the total amount in addition to any case-related costs, such as filing fees, postage, and more. Some money may be set aside to reimburse your health insurance provider or pay any outstanding medical bills. The remaining funds, including compensation for pain and suffering, go directly to you. This way, you never have to worry about paying your attorney out of pocket.
What’s the Average Fee for a Car Accident Lawyer?
In Massachusetts, the standard contingency fee for a car accident lawyer is 33.3%, or one-third, of the total recovery.
Example: If your lawyer secures a $96,000 settlement for you, the attorney’s fee would be approximately $31,999. You would receive two-thirds or $64,001.
This percentage can sometimes change depending on the complexity of the case. Some attorneys may charge a base fee for cases that settle out of court. If your case proceeds to trial, fees may increase to 40% due to the additional work and preparation involved. Any such change must be clearly stated in the fee agreement that you sign at the beginning of your case. All fees must be agreed to in advance.
Pros and Cons of Contingency Fees
The contingency billing system is preferred in car accident cases and other personal injury claims because it benefits clients who are facing medical bills and may be unable to work due to their injuries.
Pros:
- Access to Justice: Contingency billing allows injured drivers to hire skilled legal representation without any upfront costs.
- No Risk: If your lawyer doesn’t win your case, you do not owe any attorney’s fees, so there’s no financial risk.
- Motivation: Lawyers may be motivated to work efficiently and negotiate better settlements because their compensation depends on the total recovery.
- Case Vetting: Because lawyers who work on contingency assume the financial risk, they’re incentivized to be honest about the strengths and weaknesses of your case.
Cons:
- Higher Potential Costs: In some simple car accident cases, a percentage-based fee might be higher than what an hourly rate would have been. However, this is difficult to predict.
- Confusion Over Costs: There may sometimes be confusion about the difference between legal fees and court costs, so it’s important to discuss the billing agreement with your attorney before you sign.
What Costs Are Included With Contingency Billing?
Before you sign any type of agreement, you want to make sure what costs are included with contingency billing. There’s a big difference between an attorney’s fee and court costs.
- Attorney’s Fee: This is the payment for the lawyer’s time, knowledge, and work on your case. This is the percentage discussed above.
- Case Costs: These out-of-pocket expenses are required to investigate, build, and litigate your claim.
A reputable law firm like Jim Glaser Law will cover all upfront costs on your behalf. However, you are generally responsible for paying the full amount if your case is successful. Your billing agreement should clearly state how the following case costs are handled and calculated.
- Court filing fees
- Document retrieval for police reports and medical records
- Costs to hire expert witnesses
- Deposition and court reporter fees
- Postage and copying costs
- Process server fees
How Costs Affect Your Car Accident Settlement
One key detail in any contingency fee agreement is when case costs are deducted from the gross settlement amount. These costs can be deducted either before or after the attorney’s fee is calculated. This seemingly small difference can have a significant impact on the client’s net recovery. The table below illustrates this point.
| Case Values | Scenario A (Costs Deducted BEFORE Fee) | Scenario B (Costs Deducted AFTER Fee) |
| Gross Settlement | $100,000 | $100,000 |
| Case Costs | $10,000 | $10,000 |
| Fee Calculation Amount | $90,000 ($100,000 – $10,000) | $100,000 |
| Attorney’s Fee (33.3%) | $29,970 ($90,000 × 0.333) | $33,300 ($100,000 × 0.333) |
| Net Recovery | $60,030 ($90,000 – $29,970) | $56,700 ($100,000 – $33,300 – $10,000) |
Exploring Alternatives: Other Legal Billing Systems
While contingency fees are the gold standard in personal injury law, other billing systems exist for different practice areas:
- Hourly: Lawyers often charge a set rate for every hour they work on a case, which can be costly. This is common in corporate and family law, but it’s often unaffordable and impractical for car accident victims.
- Flat Rate: For some simple legal services, it’s convenient for attorneys to charge a single flat fee. This is often used for predictable tasks, such as drafting a will or reviewing a contract, but it’s not common in personal injury law.
- Contingency With Retainer: In some cases, a lawyer might request a small upfront retainer to cover initial costs, but your payment will be deducted from the attorney’s fees at the end of the case. This is not a common practice in car accident cases.
Key Questions to Ask Before Signing ANY Agreement
Under Massachusetts law (Rule 1.5 of the Rules of Professional Conduct), all contingency fee agreements must be in writing and signed by both the client and the lawyer. The agreement must clearly state the fee percentage and how costs will be handled.
Never sign a fee agreement that you don’t fully understand. A trustworthy car accident attorney will be transparent and happy to answer all questions. Before hiring any lawyer, make sure you ask:
- What is your exact contingency fee percentage?
- Does that percentage ever change, such as if the case goes to trial?
- Do you offer a sliding scale if my case settles early?
- How are case costs handled? Can you provide an estimate?
- Will I be responsible for any costs if we don’t win? (The answer should be no.)
- Will costs be deducted before or after your fees are calculated?
- Will I receive a written statement itemizing the settlement and deductions?
- Who will be my main point of contact if I have questions?
- How often can I expect to receive updates about my case?
The process of discussing fees is a litmus test for the trustworthiness of a law firm. A firm that is patient, provides clear explanations, and puts everything in writing is demonstrating a client-first culture. In contrast, a firm that is evasive, rushes through the details, or seems annoyed by financial questions may be signaling a lack of transparency that could lead to problems down the road.
Don’t Let Cost Be a Barrier
If you’ve been injured in a car accident in Massachusetts, you probably have questions. Contact Jim Glaser Law today for a completely free, no-obligation consultation. We’ll review the details of your case, explain your rights, and answer every question you have about the legal process and the cost of hiring an attorney. If you choose to work with us, you won’t pay anything unless we win your case. Contact us now to take the next step.
