Once your personal injury claim settles, your lawyer receives the settlement check on your behalf. So how much do lawyers take from a settlement, and how much will you end up with? Here is how fees, costs and medical liens work in Florida.
What Percentage Will My Attorney Get?
You should know how much your lawyer will charge before you sign a written contract. Lawyers usually take a percentage of the final settlement, plus an amount to cover case costs. Typically, this is around one-third of the settlement amount. A $100,000 settlement for serious car accident injuries, for example, could mean a $33,333 payment to the lawyer and a $66,667 payment (minus costs) for the plaintiff.
What Is A Contingency Fee?
Many personal injury lawyers in the U.S. work on a contingency fee basis, and our guide explains how contingency fees work in Florida. They get paid only if they win compensation for an accident victim. Some people call it “no win no fee.” The fee is stated in your written agreement and deducted from the final amount, whether it comes from an insurance settlement or a court award. Built into the percentage is the risk of being paid nothing in some cases.
Florida’s Contingency Fee Limits for Personal Injury Cases
Florida Bar Rule 4-1.5(f)(4)(B) sets the maximum contingency fee a lawyer can charge in a personal injury case without a judge’s approval. The limits are tiered:
- By stage. The maximum is lower if the claim resolves before a lawsuit is answered. Once a suit is filed and the defendant files an answer (or arbitration is demanded), the maximum steps up.
- By size. The maximum percentage drops on the larger portions of a recovery.
- By appeal. An appeal can add to the allowed fee.
These are ceilings, not required rates. Before you sign, Florida also requires a written Statement of Client’s Rights. It explains the fee and your right to cancel within a short period. At Gerber Law, every term of the fee agreement is put in a written contract and explained to you in full before you sign.
A Sample Settlement Breakdown
Example only. These round numbers are hypothetical. They are not a real case result or Gerber Law’s fee terms. Say a car accident claim settles for $100,000 before a lawsuit is answered, with a one-third fee on the gross recovery:
- Gross settlement: $100,000
- Attorney fee (one-third): minus $33,333
- Case costs: minus $15,000
- Medical liens: minus $10,000
- Net to client: $41,667
Fees are only part of the picture. Costs and liens can change your take-home amount just as much, and every dollar cut from a lien generally goes to you.
Is the Fee Figured Before or After Costs?
Two fee agreements with the same percentage can leave you with different amounts. The difference is what the percentage is applied to.
- Fee on the gross recovery. The lawyer’s percentage is figured on the full settlement. Case costs and liens come out afterward. The sample breakdown above uses this method.
- Fee on the net recovery. Case costs are paid back first, and the percentage is figured on what is left. Because the fee is calculated on a smaller amount, your share is usually larger.
Neither method is hidden or unusual, but your written agreement should say clearly which one applies. If it does not, ask before you sign. It is also worth asking what happens to costs if there is no recovery. At Gerber Law, there are no fees or costs unless we win.
What Counts as a Case Cost?
Case costs are the out-of-pocket expenses of building and proving your claim. They are separate from the attorney fee. Common examples include:
- Copies of medical records and bills
- Police and crash reports
- Court filing fees and fees to serve the lawsuit
- Deposition and court reporter charges
- Fees for doctors and other witnesses who review your case or testify
- Accident reconstruction, photos and trial exhibits
- Mediation fees
A claim that settles early with the insurance company usually has fewer costs. A case that goes through a lawsuit, depositions and mediation usually has more. Your lawyer should keep a record of every cost and show each one on your final settlement statement, so you can see exactly where the money went.
It also helps to ask whether the firm charges for routine office expenses, such as copies and postage, or only for outside costs paid to others. Small charges can add up over a long case.
How Medical Liens and Letters of Protection Reduce Your Net Recovery
Anyone who paid for your care expecting repayment may have a claim on your settlement. These claims are paid before you get your check:
- Health insurance subrogation. Your health insurer, including Medicare or Medicaid, may have a right to be repaid from your recovery.
- Hospital liens. Some hospitals can claim part of your recovery for unpaid care, depending on local law.
- Letters of protection (LOPs). A doctor treats you now and is paid from your settlement later. This helps when you lack insurance or your Florida PIP benefits run out, but LOP bills are often charged at full price.
Lien amounts are not always final. A lawyer can check bills for unrelated charges and ask lien holders for reductions, which can raise your net recovery.
How Much Do Lawyers Take From a Car Accident Settlement?
For a car accident claim, the fee works the same way as for other injury claims: a contingency percentage written in your fee agreement, plus case costs, with Florida’s fee limits as the ceiling. A few things make car accident settlements in Florida a little different.
- PIP comes first. Florida is a no-fault state, so your own personal injury protection (PIP) coverage pays part of your medical bills and lost wages no matter who caused the crash. Benefits PIP already paid generally cannot be claimed again from the at-fault driver.
- Property damage may be handled separately. Ask whether the firm will help with your vehicle repair claim and whether any fee applies to that part.
- More than one policy may apply. Money can come from the at-fault driver’s bodily injury coverage and, in some cases, your own uninsured motorist (UM) coverage. Your agreement should say how the fee applies to each source.
Because PIP pays some bills early, there may be fewer medical bills left to pay from a car accident settlement. But serious injuries often cost more than PIP covers. Any remaining bills, health insurance claims or letters of protection are then paid from your settlement before you receive your share.
To learn how no-fault coverage works, read our guide to Florida’s PIP law and our post on Florida no-fault insurance laws. If you were hurt in a crash near Venice, you can also learn about our Venice car accident lawyer services.
Does the Fee Change If My Case Goes to Trial?
Under Florida’s schedule, the bigger step-up usually comes when the defendant answers the lawsuit. That tier generally covers the case through trial. An appeal can add to the fee. A lower tier may apply if every defendant admits fault and disputes only damages.
What often changes at trial is cost: depositions, transcripts, witness fees and trial exhibits. Learn more about when to settle or go to trial.
What Your Settlement Statement Should Show
When your case resolves, you should get a written settlement statement before any money is paid out to you. Florida’s rules call for a written closing statement in contingency fee cases. Read it carefully before you sign it.
A clear statement lists:
- The total amount recovered
- The attorney fee and how it was calculated
- Each case cost, line by line
- Each medical bill, lien or letter of protection being paid, and any reductions your lawyer obtained
- The net amount paid to you
If a number does not make sense, ask about it. Your lawyer should walk you through each line and answer your questions before you sign. You should never feel rushed at this stage.
Keep a copy of the signed statement with your other case papers. It is your record of how the settlement was divided, and it can help if a medical provider later sends you a bill you thought was already paid.
Questions to Ask Before You Sign a Fee Agreement
A fee agreement is a contract, so take your time with it. These questions can help you compare firms and avoid surprises later:
- What percentage will you charge, and when does it change?
- Is the fee figured on the gross recovery or after costs are repaid?
- Who pays the case costs if there is no recovery?
- Will you work to reduce my medical bills and liens before I am paid?
- Will I work directly with my lawyer, or will staff handle my case?
- How will you keep me updated, and how quickly will you return my calls?
- What happens to the fee if I change lawyers?
Write down the answers, or ask for them in writing. Comparing answers side by side makes it easier to see the real cost of each agreement.
At Gerber Law, all terms of the fee agreement are written into a contract, and you will always work directly with your lawyer. Consultations are free, and we are available 24/7, with home and hospital visits if you cannot come to our Sarasota or Venice office. We help injured people across Southwest Florida. Call (941) 484-2700 or reach us through our contact page to ask your questions before you sign anything.
Hire An Experienced Personal Injury Lawyer To Maximize Your Claim
Hiring a lawyer costs a share of the settlement, but a lawyer can handle the insurance company, the costs and the liens for you. Gerber Law only represents injured victims and has never represented insurance companies. Call (941) 484-2700 for a free case evaluation. If you are injured, we will come to the medical facility or your home for the initial consultation.
You can also reach our Sarasota and Venice offices through our contact page, or learn about our Sarasota car accident lawyer services.
Frequently Asked Questions
What percentage does a lawyer take from a settlement in Florida?
Many personal injury lawyers charge around one-third of the settlement, plus case costs. Florida Bar Rule 4-1.5(f)(4)(B) sets maximum percentages that step up once a defendant answers a lawsuit and step down on larger recoveries. Your exact percentage should be written in your fee agreement, and a lawyer should explain it before you sign.
Do I pay anything if I lose?
Under a contingency fee agreement, the lawyer is paid only if there is a recovery. At Gerber Law, there are no fees or costs unless we win, so you owe nothing for our services if we do not recover compensation for you. Other firms handle costs differently, so read the cost terms in any agreement before you sign.
Who pays the case costs?
Usually, your lawyer advances costs such as medical records, police reports, filing fees, depositions and witness fees while the case is open. Those costs are then repaid from the settlement or verdict at the end. Your fee agreement should say whether the lawyer’s percentage is figured before or after costs are taken out.
How long can a lawyer hold a settlement check?
The check goes into the lawyer’s trust account and must clear the bank first, which usually takes 3-10 business days or more. Liens and medical bills may also need to be resolved before everything can be paid out. Once that is done, fees and costs are deducted and you receive the rest. Ask your lawyer for a written settlement statement.
Can I negotiate my attorney’s fee?
Often, yes. A contingency fee agreement is a contract, and Florida’s fee schedule sets maximums, not required rates. Ask about the percentage, how costs are handled and what happens if the case goes to court before you sign. Gerber Law offers free consultations, so you can ask these questions at no cost. Call (941) 484-2700.
