In Texas, a personal injury lawyer is almost always paid by contingency fee: a percentage of what is recovered, charged only if there is a recovery. You pay nothing up front and nothing hourly. Case expenses are a separate line item, and your net is the recovery minus fee, expenses and any medical liens.
The Short Version: You Pay Out of the Recovery, Not Out of Pocket
A contingency fee means the lawyer’s payment is contingent on getting you money. If there is no settlement or no judgment, there is no attorney’s fee. That is why injury firms can take a case for a client who is out of work and has no savings, and it is why the consultation is free.
There is no hourly rate, no retainer, and no monthly invoice. The fee is a percentage written into the agreement you sign, and it comes out of the settlement or judgment when the money arrives, not before.
What that percentage is, and whether it changes if the case is filed in court, is set by contract rather than by any Texas statute. That number belongs in your signed agreement, in writing, before work begins. All parties must sign the contingency fee agreement. All parties must sign the contingency fee agreement. All parties must sign the contingency fee agreement.
Three Different Things Come Out of a Settlement
Clients often assume the attorney’s fee is the only deduction. It is usually one of three. The fee pays the lawyer. Case expenses reimburse money the firm advanced to build the case, such as records, expert witness fees, and filing fees. Liens and subrogation claims repay health insurers, hospitals, or a workers’ compensation carrier out of the recovery.
Each of these is defined in a different document. The fee is in your contingency fee agreement. Expenses are in the same agreement but in a separate paragraph. Liens come from your health plan, your medical providers, and/or Texas Labor Code §417.001 et seq. if a workers’ compensation carrier paid benefits, and that carrier’s lien is reduced by attorney’s fees under §417.003.
Ask for a written settlement statement showing all three lines and the final number payable to you.
Line item
What it pays for
Where the terms are written
Gross recovery
The total settlement or judgment
Settlement agreement or judgment
Attorney’s fee
The lawyer’s work on the case
Your signed contingency fee agreement
Case expenses
Records, filing fees, experts, depositions, mediation, and other expenses, mediation, and other expenses, mediation, and other expenses
Expense paragraph of the same agreement
Liens and subrogation
Health plan, hospital, or workers’ compensation repayment
Plan documents; Labor Code §417.001 et seq, §417.003
Net to client
What you actually take home
The written settlement statement
Order and treatment of each line depend on the language of your specific agreement.
What the Fee Includes Without a Separate Charge
In a normal contingency fee arrangement, the percentage covers the lawyer’s time and the firm’s staff time, from intake through settlement or judgment. That includes the investigation, the demand package, every call and letter with the adjuster, and the negotiation itself.
It also normally covers time nobody bills for separately: obtaining medical records, discussions with a lien holder to reduce a repayment, explaining an offer to you multiple times if that is what it takes.
There is no charge for the consultation, and none for the time spent deciding that a case should not be brought. A firm that declines a case owes you a straight explanation, not an invoice.
- Investigation and evidence gathering
- Preparing and sending the demand package
- All negotiation with the insurance carrier
- Filing suit and litigating, if the agreement covers that stage
- Negotiating liens down where possible
What the Fee Does Not Include
The fee is not the same as case expenses. Expenses are real money paid to third parties, such as a crash report from TxDOT C.R.I.S., a civil filing fee, citation issuance, constable service, and a jury fee. The Tarrant County District Clerk’s own worked example puts opening and serving a typical case at about $448 before anything else happens, all at no upfront cost to you.
The fee also does not cover your medical bills. Treatment is paid by your health insurance, by a letter of protection with the medical provider, or out of the recovery at the end. And it does not cover unrelated legal matters, such as a traffic ticket from the same crash, unless the agreement says so.
Property damage is a common gray area. Many firms handle the vehicle claim without taking a percentage of it, but that is a firm-by-firm choice. Ask, and get the answer in the contract.
Working Out What You Actually Net
The number that matters is not the settlement figure and not the percentage. It is what is paid to you at the end of the case. Two offers of the same size can produce very different nets depending on how much treatment was financed, how large the liens are, whether a lawsuit was filed, and whether the fee is calculated before or after expenses are subtracted.
That is why a lower offer negotiated with the liens reduced can beat a higher offer with untouched liens. Ask your lawyer to walk the arithmetic with you on any offer you are seriously considering, using the actual lien balances rather than estimates.
Ask early, too. Knowing how the fee interacts with expenses before you sign is the difference between a predictable outcome and an unpleasant one.
Get the Cost in Writing Before You Sign
Every question on this page has a written answer in a well-drafted fee agreement: the percentage, whether it increases at any stage, whether the fee is figured on the gross recovery or after expenses, who advances expenses, and what happens to those expenses if there is no recovery.
Read that document before you sign and ask for a copy of the signed version. If a term was explained to you verbally and is not in the paper, it is not a term.
Jim Ross Law Group offers a free consultation at 817-275-4100, in person at the Arlington office or by phone, and there is no fee unless we win.
Frequently Asked Questions
Is the first meeting with an injury lawyer really free?
Yes. Consultations at Texas injury firms are free as a matter of ordinary practice, including at Jim Ross Law Group, in person or by phone. You are not charged for the meeting whether or not the firm takes the case, and you are not obligated to sign anything that day. Bring your paperwork, ask your questions, and leave with a copy of any agreement you are considering.
Is the attorney's fee taken before or after my medical bills are paid?
In the usual sequence, the attorney’s fee and case expenses come out of the gross recovery first, then medical liens and subrogation claims are paid, and what remains goes to you. Because lien amounts are often negotiable, the order matters less than the final settlement statement. Ask to see that statement, line by line, before you sign the settlement paperwork.
Can I negotiate the percentage a Texas injury lawyer charges?
You can ask. A contingency fee is a contract term, not a fixed rate set by law, and firms do sometimes adjust it based on the type of case, the clarity of liability, or the stage at which it resolves. What you should not do is choose a firm on percentage alone. A slightly lower fee on a badly handled claim is not a saving.
Does the lawyer take a percentage of my vehicle damage claim too?
It depends on the firm. Property damage is usually a simpler claim than the injury claim, and many firms assist with it at no separate charge as a service to the client. Others treat it as part of the recovery. This is a specific question with a specific answer, so ask for it in writing rather than assuming either way.
Do I pay taxes on the portion that goes to my lawyer?
Under IRC §104(a)(2), compensatory damages for physical injury or physical sickness are generally excluded from gross income. Punitive damages and interest are taxable. Because the tax treatment of a mixed recovery can get complicated, ask a CPA about your specific settlement rather than relying on a general rule from any website, including this one.
What if the case settles quickly? Does the lawyer still get the full percentage?
Yes, unless your agreement says otherwise. The percentage is set by contract, not by hours worked, and a fast settlement usually reflects strong preparation rather than easy work. Some agreements do set a lower percentage for cases that resolve before suit is filed, which is one reason to read the contractual language carefully before signing.
How do I compare the cost of two different injury firms?
Compare four terms side by side: the base percentage, whether it increases if suit is filed or the case goes to trial, whether the fee is calculated on the gross recovery or after expenses are deducted, and who bears advanced expenses if nothing is recovered. Those four answers tell you far more about cost than any advertised number does.
This page is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every case is different and past results do not guarantee or predict a similar outcome in any future case. Jim Ross Law Group, P.C., 2201 E Lamar Blvd #110, Arlington, TX 76006.