One of the first questions people ask when they are injured in an accident is whether they can afford a lawyer. The short answer: you almost certainly can, because personal injury lawyers in Texas do not charge hourly rates or require payment upfront. They work on a contingency fee basis.
What Is a Contingency Fee?
A contingency fee means the attorney’s payment is contingent on the outcome — if they do not recover money for you, you do not owe them an attorney’s fee. The lawyer earns a percentage of whatever they recover on your behalf, whether through settlement or trial verdict.
This system exists specifically to give injury victims access to legal representation regardless of their financial situation. You do not need savings, a retainer, or a line of credit to hire a personal injury attorney in Texas.
What Percentage Do Personal Injury Lawyers Charge in Texas?
There is no single mandated percentage — Texas rules allow lawyers and clients to negotiate the fee. In practice, the standard range for personal injury contingency fees in Texas is:
- 33% (one-third) — Most common for cases that settle before a lawsuit is filed
- 40% — Common once a lawsuit is filed or litigation begins
- 45% — Sometimes used for cases that go to trial or appeal
At the Law Office of Chris Sanchez, we charge a contingency fee and explain the exact percentage before you sign anything. You will always know what percentage applies and when it changes.
What Costs Are Separate from the Attorney’s Fee?
The contingency fee covers the attorney’s legal work — investigation, negotiation, filing, hearings, trial. It does not cover out-of-pocket expenses incurred to build your case. These costs, called case expenses or litigation costs, may include:
- Filing fees for the lawsuit
- Expert witness fees (medical experts, accident reconstructionists)
- Court reporter fees for depositions
- Medical record retrieval costs
- Investigation costs
- Process server fees
Most personal injury attorneys — including the Law Office of Chris Sanchez — advance these costs on your behalf and deduct them from the recovery at the end of the case. If you do not recover, these costs are typically not collected from you under most fee agreements, but you should confirm this in writing before signing.
How Is the Contingency Fee Calculated?
The fee is calculated as a percentage of the gross recovery (the total amount recovered) or the net recovery (the amount after costs are deducted), depending on the fee agreement. This distinction matters significantly on larger cases — always confirm with your attorney which calculation method applies.
Example — Gross calculation:
Settlement: $100,000
Costs: $5,000
Attorney fee (33% of $100,000): $33,000
You receive: $100,000 – $33,000 – $5,000 = $62,000
Example — Net calculation:
Settlement: $100,000
Costs: $5,000
Attorney fee (33% of $95,000): $31,350
You receive: $100,000 – $31,350 – $5,000 = $63,650
What About Medical Bills and Liens?
In addition to the attorney fee and costs, any outstanding medical liens must be satisfied from the recovery. If you received treatment through health insurance, Medicaid, Medicare, or a provider who agreed to wait for payment (a letter of protection), those parties have a legal right to reimbursement from your settlement. An experienced attorney negotiates these liens down to maximize what you take home.
Is a Higher Contingency Fee Ever Worth It?
Yes. A lawyer with deep experience in 18-wheeler accidents, catastrophic injury cases, or complex multi-party litigation may charge a higher percentage — but may also recover dramatically more than a less experienced attorney charging a lower rate. What matters is the net amount you receive, not the percentage alone.
A 33% fee on a $50,000 settlement leaves you with less money than a 40% fee on a $200,000 settlement. Hire the attorney with the best track record for your type of case, not the cheapest fee percentage.
Frequently Asked Questions About Personal Injury Legal Fees in Texas
Do I pay anything if my case is lost?
Under a true contingency fee agreement, you pay no attorney’s fee if the case is not won. Most agreements also forgive the advanced costs if there is no recovery, but confirm this in your specific fee agreement. Never sign a fee agreement without understanding when and whether costs are owed if the case is lost.
Can I negotiate the contingency fee percentage?
Yes. The fee is set by agreement between you and the attorney. Some factors that may affect the rate: strength of the liability evidence, type of case, likely resolution timeline, and complexity. There is no harm in asking.
Are there types of cases that personal injury lawyers in Texas do not take on contingency?
Attorneys generally take contingency cases when liability is reasonably clear and damages are significant enough to justify the investment of time and costs. Very low-value cases or cases with very unclear liability may be difficult to place on contingency. If an attorney declines your case on contingency, ask why — it is important information about your claim.
Does the contingency fee change if the case goes to trial?
Usually yes. Most fee agreements provide for a higher percentage once a lawsuit is filed and a higher percentage still if the case goes to trial. This reflects the significantly greater time and cost required for litigation. These escalating rates should be clearly stated in your fee agreement before you sign.
What is a letter of protection and how does it work with a contingency fee?
A letter of protection (LOP) is an agreement between a medical provider and your attorney that the provider will defer billing and be paid from the injury settlement. This allows you to receive medical treatment while your case is pending without paying out of pocket. The medical bill is then negotiated by your attorney and paid from the settlement proceeds along with the attorney fee and other costs.
The Law Office of Chris Sanchez handles all personal injury cases on a contingency fee basis. You pay nothing unless we win. Call (956) 686-4357 for a free consultation to discuss your case and our fee structure.