The contingency fee
A contingency fee is a percentage of what is recovered. If nothing is recovered, there is no attorney fee. In Michigan personal injury and wrongful death cases, Michigan Court Rule 8.121 treats a fee above one-third of the net recovery as excessive, and contingency agreements must be in writing.
A worked example
| Step | Amount |
|---|---|
| Settlement | $90,000 |
| Case costs (filing fees, records, depositions) | −$3,000 |
| Net recovery | $87,000 |
| Attorney fee at one-third of net recovery | −$29,000 |
| To you, before any liens | $58,000 |
The figures are an illustration, not a typical result. Your agreement will state the percentage and how costs are handled.
Case costs
Costs are expenses of the case itself: court filing fees, medical records, deposition transcripts and expert witness fees. They are separate from the attorney fee. Before you sign with any firm, ask three questions and get the answers in writing:
- Is the fee calculated before or after costs are deducted?
- Who pays the costs if there is no recovery?
- Will you tell me before spending on expensive items like expert witnesses?
No-fault benefits and attorney fees
In a dispute over PIP benefits, the fee usually applies to the overdue benefits we recover. If the insurer’s refusal or delay was unreasonable, MCL 500.3148 lets the court order the insurer to pay a reasonable attorney fee on top of the benefits. Your fee agreement states whether the fee applies to benefits the insurer pays without a dispute; ask any firm this question.
Medical providers
Provider collection matters are handled on a contingency fee set out in a written engagement agreement. Interest under MCL 500.3142 and fee awards under MCL 500.3148 often change the economics of small balances.
Sources: MCR 8.121; MRPC 1.5; MCL 500.3142; MCL 500.3148.
Questions people ask us
Do I pay anything up front?
No. Injury cases are handled on a contingency fee, so there is no attorney fee unless money is recovered for you.
What is the most a Michigan lawyer can charge in an injury case?
Michigan Court Rule 8.121 treats a contingency fee above one-third of the net recovery in a personal injury or wrongful death case as excessive. Net recovery is what remains after the case costs are taken out.
Who pays the case costs if we lose?
Your written fee agreement answers this before you sign. Ask any firm you consider to put the answer in writing.
Does the insurer ever pay my attorney fees?
Sometimes. In a no-fault case, if the insurer unreasonably refused or delayed paying benefits, the court can order it to pay your attorney fees under MCL 500.3148.