Contingency fees · Missouri
Contingency fees explained: how an injury lawyer gets paid
With a contingency fee, your lawyer is paid a percentage of the money recovered in your case, not by the hour. In Missouri, the agreement must be in writing and signed by you. It must say the percentage, how case costs are handled, and which costs you would owe even if you lose.
How a contingency fee works
Most people who are hurt cannot pay a lawyer by the hour. A contingency fee solves that. The lawyer’s fee comes out of the money recovered in the case. The fee is a percentage that you agree on at the start.
The word “contingency” means the fee depends on the outcome of the case. Your written agreement spells out exactly how.
But a fee is not the same as case costs. More on that below.
What Missouri says your agreement must include
The Supreme Court of Missouri sets the rules for lawyer fees (Rule 4-1.5). For a contingency fee, your agreement must:
- Be in writing and signed by you.
- State the percentage. It must also say if the percentage changes when the case settles, goes to trial, or is appealed.
- List the case costs that will come out of the recovery.
- Say whether costs come out before or after the fee is figured.
- Clearly tell you which costs you would owe even if you do not win.
At the end, your lawyer must give you a written statement. It shows the outcome, what you receive, and how that amount was figured.
Fees and costs are different
The fee pays the lawyer for legal work. Costs are what the case itself uses up. Examples include:
- Court filing fees.
- Fees to deliver court papers.
- Charges for copies of medical records.
- Court reporter fees for recorded interviews under oath, called depositions.
- Fees for expert witnesses, like doctors who testify.
Your agreement can make the fee depend on the outcome but still leave you owing some costs. That is why Missouri requires the agreement to spell out costs. It is also why it is not accurate to say a contingency case costs the client nothing.
Before or after: why it matters
Costs can come out before or after the fee is figured. This changes what you take home.
A SIMPLE EXAMPLE
Suppose a case settles for $90,000. The fee is one-third. Costs are $6,000.
Costs out first: $90,000 minus $6,000 is $84,000. One-third of that is a $28,000 fee. You get $56,000.
Fee figured first: One-third of $90,000 is a $30,000 fee. Then $6,000 in costs comes out. You get $54,000.
Medical bills and health plan paybacks are a third item. They are not fees or costs. But they are often paid from the recovery. Your final statement should list them.
Your fee must still be fair
A signed agreement does not make any fee okay. Missouri bars fees that are unreasonable. It looks at things like how hard the case is, how much time it takes, and how much is at stake.
Your lawyer must also explain what the work covers and how the fee is set. This should happen near the start, and ideally in writing.
Missouri does not allow contingency fees in two kinds of cases: criminal defense, and divorce fees that depend on getting a divorce or on the amount of support or property.
Questions to ask before you sign
- What is the percentage? Does it change if we file a lawsuit or go to trial?
- Which costs will the firm pay up front?
- Do costs come out before or after the fee?
- Which costs would I owe if we do not win?
- How will my medical bills be paid at the end?
- When will I get my final written statement?
A good lawyer will answer each question in plain words. The answers should match what the agreement says. Bring these questions to your first meeting. See what to bring to your consultation.
Checking your final statement
When your case ends, look for these lines on the statement:
- The total amount recovered.
- The fee and the percentage used.
- Each cost, listed one by one.
- Each medical bill or payback that was paid, and to whom.
- The amount paid to you.
If you do not understand a line, ask before you sign. Your lawyer should be able to explain every number.
Words you may hear
- Recovery: the money paid in your case, by settlement or court judgment.
- Lien: a legal claim to be paid from your recovery. Hospitals and health plans sometimes have one.
- Retainer or engagement agreement: the written contract between you and your lawyer.
- Net recovery: what is left for you after the fee, costs and liens are paid.
How this firm handles fees
The Law Offices of Harjot Singh Padda handles injury cases on a contingency fee. You get a written agreement that states the percentage and how case costs are handled. Your first injury consultation is free.
Business and corporate matters work differently. The first consultation is paid, and the terms depend on the work. See business law and civil lawsuits.
Common questions
Does a contingency fee agreement have to be in writing in Missouri?
Yes. It must be written and signed by you. See our personal injury page.
Could I owe money if I lose?
Maybe, for some costs. Your agreement must say which ones. Ask during your consultation.
Are business cases handled on contingency?
Business and corporate matters start with a paid consultation. See business lawsuits.
What happens to my medical bills at the end?
They are usually paid from the recovery and shown on your final statement. The case timeline guide explains that last step.
Related reading
- What to bring to your consultation
- How long a personal injury case takes
- Personal injury help
- Attorney advertising disclaimer
Questions about a fee agreement?
Mr. Padda will go through the agreement with you line by line before you sign. Injury consultations are free.
4477 Woodson Rd
St. Louis, MO 63134
The choice of a lawyer is an important decision and should not be based solely upon advertisements. This page is general information, not legal advice, and reading it or contacting the office does not create an attorney-client relationship.
Sources
- Mo. Sup. Ct. R. 4-1.5 (Fees). Supreme Court of Missouri