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Legal questionswarm-otter-316

Got a contingency fee contract from a PI lawyer — is this normal before signing?

So I was rear-ended at a red light about three weeks ago. The other driver was 100% at fault — there's a police report and everything — but their insurance has been dragging their feet and my neck and back are still messed up. I finally reached out to a personal injury attorney and they sent over a retainer agreement to review.

The gist of it is: they take 33% of whatever settlement or award comes out of this, they're authorized to receive the settlement funds directly and deduct their fee before sending me the rest, and they can basically decide to drop the case if they don't think it's winnable — they just have to tell me in writing.

A few things I'm not sure about:

  • Is 33% the standard cut? Feels like a lot but I genuinely have no idea.
  • The part where they receive the money first and then pay me — is that normal or should I be worried?
  • There's language that lets them "compromise the claim" on my behalf. Does that mean they can settle without asking me first?
  • What happens to any costs they fronted (filing fees, medical record requests, etc.) if we lose?

I want representation because dealing with the other driver's insurer alone is exhausting and I feel like I'm getting lowballed already. But I also don't want to sign something I don't fully understand. Has anyone else gone through this process? What should I look for or push back on before signing?

11replies

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11 replies

  • 17
    curious-wren-731

    I went through almost this exact same thing last year after a T-bone crash. The 33% cut is pretty standard for pre-litigation — some contracts bump it up to 40% if it goes to trial, so check if yours has that escalation clause buried in there. Mine did and I almost missed it.

    • 18
      daring-raven-954

      The attorney receiving funds first is completely normal — it's called a trust or escrow account and there are actually strict bar rules governing how they handle it. They can't just pocket your money; it has to be itemized. What you should ask about is the costs question you raised. Some agreements say costs come off the top before the percentage is calculated, others take the percentage first and then deduct costs. That difference can be significant depending on how expensive the case gets. Ask them to walk you through a hypothetical example so you can see exactly how the math works.

  • 17
    quick-bison-709

    Quick question — did you actually read the full termination section? You mentioned they can walk away if they decide the case isn't viable, but can you walk away without penalty if you're unhappy with how things are going? Some contracts make it messy to switch attorneys mid-case because the original firm can still claim a portion of any eventual recovery. Worth knowing before you're locked in.

    • 10
      curious-optimist825

      Did you have to escalate, or did they come around after the first ask?

  • 16
    bright-swift-364

    Not legal advice, but to answer your specific question about 'compromising the claim' — ethically, an attorney cannot settle your case without your consent. That language is standard boilerplate giving them authority to negotiate, but any actual settlement offer should require your sign-off. If the agreement implies otherwise, ask them to clarify that in writing before you sign. Most reputable PI attorneys will have no problem confirming that in an email.

    • 0
      tired-commuter637

      Going through something similar right now. Did following up actually move the needle for you?

  • 16
    humble-wolf-347

    Speaking from experience on the other side of the table: the moment adjusters know you have an attorney, the whole dynamic changes. They know they can't just lowball you with a quick check and hope you take it. The 33% can feel painful but having someone who speaks the same language as the insurer is usually worth it. Just make sure whoever you hire actually returns your calls — that's honestly my biggest complaint about PI attorneys from what I saw.

  • 9
    brave-fox-426

    Getting a lawyer is smart. The other driver's insurer is not your friend — full stop. Every week you spend going back and forth with them without representation is a week they're building a file on why your injuries aren't that serious. Sign with someone you trust and let them handle the communication.

    • 9
      careful-dreamer184

      How long did it end up taking in your case?

  • 5
    kind-sparrow-862

    33% pre-trial, potentially higher at trial, costs reimbursed out of your share — that's the standard PI deal almost everywhere. What matters more than the percentage is whether this person has actually handled injury cases like yours and whether they'll keep you in the loop. Ask them directly: how many cases like mine have you settled in the last two years? Their answer will tell you a lot.

  • 4
    mellow-otter-481

    I'd be nervous signing anything without having someone else look at it first. Is there any chance you can get a second opinion from another attorney before committing? I think a lot of them will do a free consult.