This page was written, edited, reviewed & approved by Ruben Davidoff following our comprehensive editorial guidelines Ruben Davidoff ,the Founding Partner, has 30+ years of legal experience as a New York personal injury attorney.
Contingency fees are a payment structure in which your lawyer receives a percentage of your settlement or court award, rather than charging upfront legal fees. This arrangement means you pay nothing out of pocket unless your attorney wins your case. Around 95% of personal injury cases settle before trial, and contingency fees in these cases range from 33% to 40% of the final settlement.
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Many Americans cannot afford hourly fees or retainers, so contingent-fee arrangements provide access to quality legal representation they would otherwise miss out on. At Davidoff Law, we handle every personal injury case on a contingency fee basis because we believe financial barriers should never block the path to justice.
What Are Contingency Fees in Personal Injury Cases?
A contingency-fee arrangement is a contract between a lawyer and a client under which the attorney receives payment only if the client wins the case or receives compensation through a settlement. Unlike hourly billing, in which clients pay for every hour of legal work regardless of the outcome, contingency fees tie the lawyer's fee to a successful outcome. This fee structure removes the upfront cost of hiring a lawyer and shifts the financial risk from the client to the law firm.
Contingency fees dominate personal injury cases for good reason. Most injury victims face mounting medical bills and lost income after an accident. Paying a lawyer by the hour while recovering from serious injuries creates an impossible burden for most families. The contingency-fee model addresses this problem by allowing injured people to pursue legal action — from car accident claims to construction site injury cases — without risking money they do not have.
How Contingency Fees Work Compared to Hourly Fees
The way attorneys charge for legal representation shapes your entire experience with the legal system. Understanding how contingency fees and hourly fees work helps you choose the right fee structure for your situation. Below is a breakdown of each approach.
Contingency Fees Work on a Percentage Basis
Under a contingency fee agreement, you pay nothing unless your case settles or a court award is granted in your favor. Your lawyer receives a set percentage of the recovery as payment for their work. This means your attorney has a direct stake in the outcome and will work diligently to maximize your compensation. Learn more about what percentage car accident lawyers typically take and how that percentage is structured.
Hourly Fees Require Upfront Legal Fees
With hourly billing, clients pay attorney fees based on the number of hours the lawyer spends on the case. Most law firms require a retainer — an upfront payment that covers initial legal expenses. You owe these hourly fees whether you win or lose, which creates significant financial risk for clients pursuing civil cases with uncertain outcomes.
Understanding a Contingency Fee Agreement
A contingency fee agreement is a written contract that spells out the terms of your arrangement with your attorney. This document is the foundation of your legal relationship, and you should review every detail before you sign. The New York Rules of Professional Conduct, Rule 1.5, require that such arrangements be clear, fair, and in writing.
The agreement states the exact percentage your lawyer receives from any settlement or court award. It also explains how the firm handles litigation costs like filing fees, expert witness fees, and other legal expenses. Some agreements deduct these costs from the recovery before calculating the attorney's percentage, while others deduct them after. At Davidoff Law, we walk every client through the fee agreement so there are no surprises when a case settles or goes to trial.
What Is Included in Attorney Fees and Legal Expenses?
Many clients conflate attorney fees with legal expenses, but they are two separate costs in any contingency-fee arrangement. Understanding this difference helps you know where your money goes if you win your case. Below is a clear breakdown of each category.
Attorney Fees vs. Legal Expenses
Attorney fees cover the cost of legal representation — the work your lawyer does on your behalf. The American Bar Association explains that contingency arrangements align the interests of attorneys and clients by tying payment to results. This includes research, negotiation, court appearances, and trial preparation. Legal expenses are the out-of-pocket costs tied to building and filing your case, and they exist separately from the contingency fee your attorney receives.
Common Legal Expenses in Personal Injury Cases
Personal injury lawyers handle many costs during litigation that go beyond their own fees. Common legal expenses include:
- Filing fees for court documents
- Expert witness fees for medical and financial testimony
- Costs to obtain medical records and bills
- Deposition and transcript fees
- Postage, copying, and administrative costs
Your contingency-fee agreement should explain how the firm handles these expenses and whether they are charged to your recovery.
Contingent Fees and Risk Sharing Between Lawyer and Client
One of the strongest benefits of contingent-fee arrangements is that they split the financial risk between the lawyer and the client. Your attorney invests time, resources, and money into your case with no guarantee of payment. If the case does not produce a successful outcome, the lawyer receives nothing for their work on your behalf.
This risk-sharing model creates a powerful incentive for your attorney to advocate vigorously for the best possible outcome. Lawyers who work on a contingency basis only win when their client wins. At Davidoff Law, we accept the financial risk of every case we take because we believe in the strength of our clients' legal claims and our ability to deliver results. Our proven track record of case results demonstrates the outcomes this commitment produces.
How Much Do Contingency Fees Typically Cost?
Contingency fees across the country range from 33% to 40% of the final settlement or court award. Most personal injury lawyers charge 33% if a case settles before trial and up to 40% if the case goes to litigation or trial. State government regulations and bar association rules cap the percentage attorneys can charge in certain types of cases. In New York, Judiciary Law §474-a specifically governs fee schedules in medical, dental, and podiatric malpractice actions, setting sliding-scale caps that decrease as recovery amounts increase.
The exact percentage depends on the complexity of your case and the stage at which it resolves. A straightforward settlement may cost less than a case that requires months of litigation. Transparency matters — your fee agreement should state the percentage in plain language so you know the cost before legal action begins.
Are Contingency Fees Worth It in Personal Injury Cases?
Contingency fees give injured people access to the legal system when they need it most. Without this fee structure, most accident victims could not afford to hire a skilled attorney or pay hourly fees while dealing with medical bills and lost wages. The contingency basis removes every financial barrier between you and justice.
Beyond access, contingent fees align your lawyer's interests with yours. Your attorney only earns money if you receive compensation, so they have every reason to build the strongest case possible. This applies whether you are pursuing a wrongful death claim, a workers' compensation dispute, or any other personal injury matter. At Davidoff Law, we believe this arrangement delivers the best results for our clients because it ties our success to theirs. For most personal injury cases, a contingency fee arrangement is the smartest financial decision an injured person can make.
Frequently Asked Questions About Contingency Fees
Contingency fees are a payment structure where your lawyer earns a percentage of your settlement or award. You pay nothing upfront. This system supports access to justice and aligns with public policy.
No. Under a contingency fee arrangement, you owe no attorney fees unless you recover money. This follows public policy and allows injured clients to seek help without financial risk.
Most personal injury lawyers charge between 33% and 40% of the final recovery. The rate may rise if the case goes to trial. Fees must follow professional conduct rules.
Often, yes. The percentage and terms depend on the case and the firm’s policies. Lawyers must follow professional conduct standards and clearly explain all fees before you sign.
If you lose, you usually owe no attorney fees under a contingency agreement. This approach aligns with public policy goals and protects clients from incurring costs for unsuccessful claims.
It depends on your agreement. Some firms cover all expenses if there is no recovery. Others may charge certain costs. Professional conduct rules require clear disclosure of these terms.
Your lawyer receives a set percentage of your total recovery. The calculation method is explained in your contract. Professional conduct standards require that fees be fair and reasonable.
The agreement lists the fee percentage, how expenses are handled, and the scope of services. It should be clear and written. Professional conduct rules require full transparency.
Yes. Most personal injury cases are handled on a contingency-fee basis because it gives clients access to quality legal representation without upfront payment. This is the standard across most law firms that handle injury claims, whether in Manhattan, Brooklyn, Queens, or anywhere in New York City.
Yes. Some attorneys prefer hourly billing, and clients can choose it if they want. However, hourly fees require an upfront payment and carry the risk of owing money even if the case is not successful.
Review your fee agreement before you sign it. Pay close attention to the percentage, how expenses are handled, and what happens if you lose. Ask your lawyer to explain every section of the agreement in plain language.
es. We explain every detail of our contingency fee agreement. Our team adheres to strict professional standards and values transparency. Clear communication supports public policy and builds client trust.
Speak With Davidoff Law About Your Case for a Free Consultation
Contingency fees exist to ensure that money never stands between you and the legal help you deserve. At Davidoff Law, we handle every personal injury case on a contingency basis — you pay no upfront attorney fees and owe nothing unless we win your case. Our fee agreement is transparent, and we explain every detail before you sign.
If you or a loved one suffered injuries due to someone else's negligence, contact us today. Call 718-268-8800 or schedule a free consultation online to discuss your legal claims with an experienced attorney. We serve clients throughout Forest Hills and across Queens, Brooklyn, the Bronx, Manhattan, and Staten Island. We are available 24/7. Se Habla Español. Take the first step toward justice and the compensation you deserve.
Ruben Davidoff, founder of Davidoff Law, established his practice in 2012 after moving to Queens in 1988 and beginning his legal career in 1997. Admitted in NY State and the US District Court for the Eastern District of NY, he has extensive experience in personal injury, handling various cases like airline crashes, auto accidents, and slip/trip and fall cases. Mr. Davidoff provides personalized attention, recovering millions for clients through settlements or verdicts, leveraging decades of experience.
