How Contingency Fees Work

One of the first questions injured people ask is the most practical: how can I afford a lawyer when I can’t even afford my medical bills? The answer in nearly every personal injury case is the same; you don’t pay anything upfront, and you don’t pay a fee at all unless your attorney recovers money for you. That arrangement is called a contingency fee, and it’s the standard in Missouri personal injury practice. Here’s how it actually works.

What Is a Contingency Fee?

A contingency fee is a legal fee that depends (“is contingent”) on the outcome of the case. Instead of paying an hourly rate or a flat retainer, you agree that the attorney will be paid a percentage of any recovery; settlement or verdict, they obtain for you. If there is no recovery, there is no fee.

For an injured person facing medical bills, lost income, and an aggressive insurance company, this matters enormously. It means the strength of your case; not the size of your bank account, determines whether you can hire qualified legal representation.

Why Contingency Fees Exist in Personal Injury Law

Hourly billing makes sense for predictable legal work: drafting a contract, forming a business, or handling a routine matter. It does not work well for personal injury cases, which involve months or years of investigation, negotiation, and sometimes litigation, with no guarantee of recovery and substantial upfront costs.

Contingency fees solve that problem in three ways:

1. Access. Injured people who could never afford hourly rates can still hire skilled counsel.
2. Aligned incentives. Your attorney is only paid if you are paid, and the more your attorney recovers, the more you both receive.
3. Risk-sharing. The law firm advances the time, costs, and expenses of building your case and only recoups them through a successful outcome.

This structure is why contingency fees are standard for St. Louis car accident cases, truck crash claims, premises liability cases, wrongful death actions, and nearly every other type of personal injury matter.

How the Percentage Works

The contingency percentage typically depends on how far the case proceeds:

• Pre-litigation settlement. A lower percentage often applies if the case settles before a lawsuit is filed.
• After filing suit. A somewhat higher percentage typically applies if the firm has to file a lawsuit, conduct discovery, take depositions, and prepare for trial.
• Trial or appeal. The percentage may step up again if the case is tried to verdict or pursued on appeal.

The exact percentages and tiers are set out in the written fee agreement you sign at the start of the representation. Missouri Rule of Professional Conduct 4-1.5(c) requires every contingency fee agreement to be in writing, signed by the client, and clearly state the method by which the fee is calculated; including what expenses will be deducted and whether they are deducted before or after the fee is calculated.

Costs vs. Fees — An Important Distinction

A contingency fee is what the attorney is paid for their work. Case costs are something different they are the out-of-pocket expenses required to build the case:

• Filing fees
• Medical record retrieval costs
• Expert witness fees
• Deposition transcripts and court reporter fees
• Accident reconstruction
• Trial exhibits and demonstrative materials
• Postage, copying, and service of process

In most contingency arrangements, the firm advances these costs and is reimbursed from the recovery. If there is no recovery, the costs are generally not collected from the client. The written fee agreement spells out exactly how costs are handled, and you should always read this section carefully.

How a Settlement Is Actually Distributed

A typical settlement distribution in a Missouri personal injury case looks like this:

1. Total settlement received (gross recovery)
2. Minus attorney’s fee (the agreed contingency percentage)
3. Minus case costs (advanced by the firm)
4. Minus medical liens and subrogation claims (health insurance, Medicare, Medicaid, hospital liens; see our guide on dealing with insurance companies)
5. Equals client’s net recovery

A reputable firm walks you through this distribution in detail before any settlement is finalized and provides a written settlement statement showing every line item.

What “Free Consultation” Really Means

A free consultation is exactly what it sounds like a meeting (in person, by phone, or by video) where you discuss your case with an attorney at no charge. There’s no obligation to hire the firm, and there’s no fee for the conversation itself. Schmittgens Injury Law Firm offers free consultations for every personal injury case, including bicycle accidents, pedestrian injuries, and hit and run cases.

Questions to Ask Before Signing a Contingency Agreement

Before signing any fee agreement, make sure you understand:

• The exact percentage at each stage of the case
• Whether the fee is calculated before or after costs are deducted
• Who advances case costs, and what happens to costs if there’s no recovery
• How medical liens and subrogation claims will be handled
• Whether the attorney handling your case is the one who will be your primary point of contact
• The firm’s experience with cases like yours and how strong evidence will be built and preserved

Anything unclear should be explained in plain language before you sign.

Talk to a Missouri Personal Injury Attorney for Free

Rob Schmittgens has spent nearly a decade representing injured Missourians on a contingency basis. There’s no fee for the initial consultation, no upfront cost, and no attorney’s fee at all unless the firm recovers compensation for you.

Contact Schmittgens Injury Law Firm today to discuss your case.

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