What Percentage Does a Personal Injury Lawyer Take in Phoenix?

A personal injury lawyer in Phoenix may typically charge a contingency fee of around 33% to 40% of the compensation recovered. The exact percentage can vary by attorney and case, and the fee may change depending on whether the case settles before a lawsuit is filed or proceeds to litigation.

Understanding the standard contingency fee structure can help injury victims know what to expect before hiring an attorney. This includes the percentage charged, when the fee becomes payable, and whether additional case expenses are deducted from the recovery.

What Should You Know About Personal Injury Lawyer Fees in Phoenix?

Several factors can affect how much a personal injury lawyer charges and how the final fee is calculated.

Contingency Fees Are Common

Arizona Rule of Professional Conduct ER 1.5(c) allows a lawyer's fee to be contingent on the outcome of a case and requires the contingency-fee agreement to explain how the fee will be calculated, including the percentage that will apply to the recovery.

In a personal injury case, this arrangement generally means the lawyer receives an agreed percentage of the compensation recovered instead of charging an hourly fee. The fee is therefore connected to the amount recovered in the case.

Contingency fees can also reduce the upfront cost of hiring a lawyer. This may make legal representation more accessible to people who cannot afford to pay an attorney's fees at the beginning of a case.

The Percentage Can Vary

The contingency fee percentage can vary depending on factors such as the type of claim, the difficulty of the case, the amount of work involved, and the expected recovery. Different personal injury cases may require different levels of legal work, which can affect the fee terms a lawyer offers.

Clients should ask the lawyer to explain the exact percentage that will apply to their case before signing a representation agreement. Knowing the rate in advance makes it easier to estimate the attorney's fee based on different potential recovery amounts.

The Fee May Change if the Case Goes to Court

Some contingency agreements use one percentage when a case settles before a lawsuit is filed and a higher percentage if litigation begins or the case proceeds to trial. This difference reflects the additional legal work required once a lawsuit is filed.

A litigated case can involve pleadings, discovery, depositions, court appearances, motions, and other legal work that may not be necessary during pre-lawsuit negotiations. The fee agreement should clearly state whether the contingency percentage changes when the case reaches different stages.

Case Expenses May Be Separate From the Attorney's Fee

Arizona Revised Statutes § 12-341 addresses the recovery of costs in civil actions. Personal injury cases can involve expenses beyond the lawyer's fee, including court filing fees, medical-record charges, expert-witness fees, investigation expenses, copying costs, and other costs associated with preparing or pursuing a claim.

The representation agreement should explain which expenses the client may be responsible for and how those expenses will affect the final recovery. Understanding these costs in advance can help the client estimate how much of a settlement or award they may ultimately receive.

The Final Settlement Amount Matters

The amount stated in a settlement agreement is not necessarily the amount the client will receive after the case is resolved. Medical liens, case expenses, and other obligations may be deducted from the settlement before the remaining funds are distributed to the client.

Clients can ask for an explanation of these deductions before accepting a settlement. Understanding what will be taken from the recovery can help the client estimate the amount they are likely to receive after the case-related costs and obligations are paid.

Final Takeaways

• Phoenix personal injury lawyers commonly use contingency-fee arrangements, but the percentage can vary.
  
• A contingency fee is generally paid from the compensation recovered in the case.
  
• The percentage may be different if a case proceeds from settlement negotiations to litigation.
  
• Case expenses may be separate from the lawyer's contingency fee and should be discussed in advance.
  
• Reviewing the written fee agreement can help you understand exactly how attorney fees and expenses will affect your recovery.