June 23, 2025\ Personal Injury

How Do Lawyers Get Paid if They Lose a Case?

If you’re thinking about hiring a personal injury attorney, you might wonder how they get paid if they lose a case. This is a common question, especially for people worried about the cost of legal services. Most personal injury lawyers use something called a contingency fee arrangement. This means they only get paid if they win your case.

Understanding how this system works can help you feel more confident when deciding whether to hire a lawyer.

What Is a Contingency Fee?

A contingency fee means that the lawyer’s payment depends on the outcome of your case. If the lawyer wins money for you—either through a settlement or court verdict—they will receive a percentage of that amount as their fee. If they don’t win, you don’t owe them anything for their time or legal work.

This system allows injured people to hire legal help without paying anything up front.

What Happens if the Lawyer Loses?

If your lawyer loses the case and you don’t get any money, they typically won’t receive anything. You are not responsible for paying attorney’s fees if there is no recovery. This gives lawyers a strong reason to fight for the best possible result.

However, some costs may still apply. These can include:

Court filing fees
Expert witness fees
Medical record copy charges
Deposition and transcript fees

Many law firms will cover these costs during the case and only seek repayment if you win. Others may require reimbursement regardless of the outcome, so it’s important to ask about this when you sign the agreement.

What Is a Fee Agreement?

When you hire a personal injury lawyer, you’ll sign a written agreement that explains how the fees and costs will be handled. This is called a contingency fee agreement. It should clearly state:

The percentage the lawyer will take if you win
How case expenses are paid
Whether you owe anything if you lose

In Florida, most personal injury lawyers charge between 33% and 40% of the recovery, depending on whether the case settles or goes to trial.

Why Do Lawyers Work on Contingency?

Lawyers work on a contingency fee basis because many injury victims cannot afford to pay out of pocket. This system helps more people get legal help when they need it most. It also means the lawyer takes on the risk—if they don’t win, they don’t get paid.

This encourages attorneys to take only strong cases and work hard to get results.

What Should You Ask Before You Hire a Lawyer?

Before hiring a lawyer, ask these questions:

Do you work on contingency?
Will I owe anything if we don’t win?
Who pays for court costs and expenses?
How much of my settlement will go toward fees?

Understanding the answers can help you avoid surprises later and make sure the lawyer’s payment structure works for you.