How Much Does a Lawyer Take From a Settlement?

Settling a personal injury claim can be a relief after a long, stressful process, but understanding how much of that settlement you’ll actually receive is essential. In personal injury cases, attorneys typically work on a contingency fee basis, meaning they’re paid a percentage of your settlement or award rather than charging upfront fees. This arrangement makes hiring an attorney accessible to many people, as payment is contingent upon a successful outcome. However, it’s crucial to know how much a lawyer may take from your settlement to plan your financial future accordingly.

With over 18 years of experience, Dismuke Law has helped clients across Central Florida navigate the complexities of personal injury settlements. Our team is committed to transparency, ensuring you fully understand the costs involved in your case. As Board-Certified Civil Trial Attorneys, we focus on securing the best possible outcomes for our clients, while maintaining clear communication about what you can expect throughout the process.

Personal Injury Attorney Contingency Fees

Most personal injury lawyers charge on a contingency fee basis. The great thing about contingency fees is if you fail to recover any compensation for your injury, you do not owe your lawyer for the work they did. Contingency fees allow many people to hire lawyers when they otherwise could not afford to do so.

The other interesting thing about contingency fees is you pay the same percentage contingency fee if you hire a lawyer who has never handled an injury case or if you hire an expert in the field. Therefore, it is generally best to retain a personal injury lawyer for your injury claim—rather than a general attorney—as you’ll pay the same amount of money for someone with lots of experience and a track record of success, versus someone who is technically certified but has no other qualifications.

Contingency Fee Agreement Before a Lawsuit is Filed

Contingency fees vary depending on whether you speak with your attorney before or after filing a lawsuit. The following are the percentages for contingency fees if you file before a lawsuit is filed:

• 33 1/3% of any recovery up to $1 million
• 30% of any recovery between $1-2 million
• 20% of any recovery in excess of $2 million

The percentages for contingency fees shift depending on the value of your claim and the amount of money you recover.

Contingency Fee After a Lawsuit is Filed

Retaining a lawyer after filing a lawsuit may be slightly more expensive for most personal injury claims. The following describes the contingency fee rates if you retain your attorney after filing:

• 40% of any recovery up to $1 million
• 30% of any recovery between $1-2 million
• 20% of any recovery in excess of $2 million

Fees are higher for the first $1 million if you retain an attorney after filing your claim. However, your personal injury attorney from Dismuke Law will have the experience and qualifications necessary to maximize your potential recovery. When you work with an attorney, you’re likely to receive much higher compensation, compared to when you represent yourself in your case.

Contingency Fee if All Defendants Admit Liability in Their Answer to the Complaint and Request a Trial on Damages Only

Contingency fees are also different depending on whether other parties have admitted fault. The following are the contingency fees when all defendants admit their liability in a claim:

• 33 1/3% of any recovery up to $1 million
• 20% of any recovery between $1-2 million
• 15% of any recovery over $2 million

Fees are lower when responsible parties admit responsibility for your losses.

Additional Fee for Appellate Proceedings

Your lawyer will also receive an additional fee when you have an appellate proceeding. This is an additional 5% of the total gross recovery.

The Contingency Fee for Federal Tort Claims Acts or Claims against the State and Its Subdivisions under Florida Statute §768.28

An additional contingency fee applies if your claim is against the state, against one of its subdivisions, or is a federal tort claim. This is 25% of the total gross recovery. 

Claimants looking for compensation from an entity with sovereign immunity under Florida Statute §768.28 may also run into compensation limitations. These claims have a cap of $200,000 in compensation per person or $300,000 per incident.

Warnings Regarding Personal Injury Costs

At Dismuke Law, we only charge clients back costs if there is a recovery. In other words, clients never pay costs unless we recover funds on their behalf. Understanding legal fees is crucial, as they can significantly impact the overall compensation you receive.

Due to the legal system’s complexity, you should keep some additional thoughts at the forefront of your mind. For instance, some lawyers who are supposed to work on contingency fees end up charging costs to their clients whether they win or lose. Look out for this behavior when you hire a personal injury law firm. If you can choose between two otherwise qualified lawyers—where one only charges the cost if there is a recovery while the other charges whether they win or lose—it seems common sense that would be the best choice.

Additionally, some lawyers may charge as “costs” items that should be considered overhead. For example, some lawyers charge clients “costs” for hiring someone to write a demand or review medical records. It doesn’t seem fair for a lawyer to charge additional “costs” for these items when the attorney fee is already so much and should cover simple things like demand writing and record review.

Factors That Affect Attorney Fees

When determining attorney fees in personal injury cases, several factors come into play. These factors can impact the percentage of the settlement amount that the lawyer takes as payment for their services. Some of the key factors that affect attorney fees include:

• The complexity of the case: Cases involving complex legal issues, multiple parties, or extensive evidence may require more time and effort from the lawyer, resulting in higher fees. 
• The lawyer’s experience and reputation: Lawyers with a proven track record of success and a strong reputation in the field may charge higher fees due to their experience, qualifications, and the value they bring to the case.
• The state laws where the claim is filed: Different states have different laws and regulations governing attorney fees, which can impact the percentage of the settlement amount that the lawyer takes.
• Whether or not the case goes to trial: Cases that go to trial often require more time and effort from the lawyer, resulting in higher fees.

While you are not necessarily paying medical bills and legal fees related to your claim, that doesn’t necessarily mean these services are free. Your lawyer is paying for these costs out of their own pocket, accepting that they may face a financial loss if they lose your case. This means your attorney at Dismuke Law is just as invested in your claim’s success as you are. And we only take the fees we do to manage these costs and pay our employees fairly.

Understanding each of these factors can help you better anticipate the potential costs associated with your personal injury case and make informed decisions about your legal representation. 

Estimating Settlement Amounts

Estimating settlement amounts in personal injury cases can be a complex task. The settlement amount will depend on various factors, including the severity of the injury, the extent of the damages, and the strength of the evidence. A personal injury lawyer can help estimate the settlement amount by:

• Reviewing the case and assessing the strength of the evidence: A thorough review of the case details and evidence can provide a clearer picture of the potential settlement.
• Evaluating the severity of the injury and the extent of the damages: The more severe the injury and the greater the damages, the higher the potential settlement amount.
• Researching similar cases and their outcomes: Looking at similar cases can provide a benchmark for what to expect in terms of settlement amounts.
• Negotiating with the insurance company or opposing counsel to reach a fair settlement: Skilled negotiation can significantly impact the final settlement amount.
• Value of qualifying insurance coverage: The compensation you can receive may change based on the insurance coverage other involved parties have. For example, if someone has a maximum of $15,000 in PIP on their car insurance, a victim can only receive a maximum of $15,000 in compensation. You can also increase your compensation if you have your own insurance coverage for underinsured or uninsured parties.

By working with a knowledgeable personal injury lawyer, you can get a more accurate estimate of your potential settlement and ensure that you are fairly compensated for your injuries. You also avoid getting taken advantage of by other legal personnel. Leveling the playing field with an experienced attorney, such as one from Dismuke Law, will help ensure you get the maximum compensation possible for your losses and injuries.

How Settlements Are Distributed

When a settlement is reached in a personal injury case, the distribution of the funds can be complex. Typically, the settlement amount is distributed as follows:

• The lawyer’s fees are deducted from the settlement amount: This is usually a percentage of the total settlement amount, as agreed upon in the contingency fee agreement.
• Medical bills and other expenses are paid from the settlement amount: Any outstanding medical bills and related expenses are settled from the total amount.
• The remaining balance is paid to the client: After deducting the lawyer’s fees and medical expenses, the remaining amount is given to the client.

Understanding this distribution process helps clients know what to expect and ensures transparency in how the settlement funds are handled.

The Role of a Personal Injury Lawyer

A personal injury lawyer plays a crucial role in helping accident victims receive fair compensation for their injuries. Some of the key roles of a personal injury lawyer include:

• Reviewing the case and assessing the strength of the evidence: A detailed case review helps in understanding the merits and potential challenges.
• Evaluating the severity of the injury and the extent of the damages: Accurate evaluation of injuries and damages is essential for determining the compensation amount.
• Negotiating with the insurance company or opposing counsel to reach a fair settlement: Effective negotiation can lead to a favorable settlement without the need for a trial.
• Representing the client in court, if necessary: If a fair settlement cannot be reached, the lawyer will represent the client to fight for their rights.
• Providing guidance and support throughout the legal process: From filing the claim to final settlement, the lawyer offers continuous support and guidance.

By fulfilling these roles, a personal injury lawyer ensures that accident victims receive the compensation they deserve and navigate the legal process with confidence.

Tips and Tricks for Maximizing Your Settlement Amount

To maximize your settlement amount, working with an experienced personal injury attorney is essential. Some tips for maximizing your settlement amount include:

• Seeking medical attention immediately after the accident: Prompt medical attention not only ensures your health but also provides documentation of your injuries.
• Keeping detailed records of your injuries and expenses: Accurate records of medical treatments, expenses, and other related costs are crucial for your case.
• Avoiding statements to the insurance company or opposing counsel without consulting your lawyer: Any statements made without legal advice can potentially harm your case.
• Being patient and persistent throughout the legal process: Settlements can take time, and patience can lead to a better outcome.
• Working with a lawyer who has experience in handling similar cases: An experienced lawyer can provide valuable insights and strategies to maximize your settlement.

By following these tips and working closely with a knowledgeable personal injury attorney, you can increase your chances of receiving the maximum compensation for your injuries. If you need additional guidance, including ideas for next steps tailored to your specific circumstances, you’re welcome to contact us at Dismuke Law. We’re happy to help you and to tailor our approach to your needs.

Why Choose Dismuke Law for Your Personal Injury Claim?

Securing fair compensation from a personal injury settlement is often critical to recovering after a serious accident, and at Dismuke Law, we’re dedicated to helping you maximize your claim. With over 18 years of experience in Central Florida, we’re committed to guiding clients through each step of the legal process, ensuring transparency and dedication from start to finish. When you work with us, you’re choosing a team of Board-Certified Civil Trial Attorneys who understand the complexities of personal injury settlements and focus solely on getting you the best possible outcome.

Our team handles all aspects of your case, including costs, on a contingency fee basis, so you don’t pay anything unless we secure a recovery on your behalf. You can feel confident that we’re invested in your success and will work tirelessly to secure the compensation you deserve. Reach out to us today at (863) 250-5050 or complete our contact form to learn more about how we can support you.