How Contingency Fees Work in an Ohio Injury Case

Published July 19, 2011 · Injury Law Basics

A man came into our Centerville office last month with a broken wrist, a totaled pickup, and a question he was almost embarrassed to ask: "What is this going to cost me?" He had been out of work for three weeks. The last thing he could afford was a legal bill on top of the medical bills. He is not alone. In my experience, fear of the cost keeps more injured people from calling a lawyer than any other single reason.

That fear is based on a misunderstanding. Injury cases in Ohio are handled on a contingency fee, and that changes everything about who can afford a lawyer. Here is how it works.

What "contingency fee" means

A contingency fee is a fee that is contingent, meaning dependent, on the result. If the case produces a recovery for you, whether by settlement or by a verdict at trial, the lawyer's fee is a percentage of that recovery. If the case produces nothing, the lawyer's fee is nothing.

That is the whole idea behind the phrase you see on our website and in our advertising: no fee unless we win. You do not write a check to hire us. You do not get a monthly invoice. You do not pay by the hour. The fee comes out of the money the insurance company or the at-fault party pays at the end, and only if there is money at the end.

Ohio's rules of professional conduct for lawyers require that a contingent-fee arrangement be put in writing and signed by the client, and that the written agreement explain how the fee will be calculated. You should expect to see, and keep, a copy of that agreement before any work begins. If a lawyer will not put the fee arrangement in writing, walk out.

Why this arrangement exists

Think about who is on the other side of an injury claim. It is almost never the driver who ran the red light. It is that driver's insurance company, with adjusters, in-house lawyers, and defense firms it pays by the hour. The insurer can afford to wait, to deny, and to litigate. A person with a herniated disc and no paycheck cannot.

The contingency fee levels that field. It lets an injured person hire an experienced lawyer on the same terms a large company would, without needing savings to do it. It also aligns the lawyer's interest with yours. We get paid when you get paid, and we get paid more when you get paid more. A lawyer working on contingency has every reason to push for the full value of your claim rather than a quick, cheap settlement.

I spent 19 years as a Dayton police officer before I practiced law. I have stood at enough crash scenes to know that the people who get hurt are usually ordinary working families. The contingency fee is what makes it possible for those families to hold a negligent driver or business accountable at all.

The free consultation carries no obligation

The first step costs nothing and commits you to nothing. When you call our office, we will sit down with you, listen to what happened, look at whatever paperwork you have, and give you an honest assessment. Sometimes that assessment is that you do not need a lawyer, or that the claim is one you can resolve on your own. We will tell you so.

If we do take the case, you will always be able to reach a lawyer who knows your case. Not a call center. You can read more about how our office operates on the About page.

Case expenses are different from the fee

This is the part that confuses people, so it is worth being precise. The fee is what the lawyer earns for the work. Case expenses are the out-of-pocket costs of pursuing the claim: court filing fees, the cost of obtaining medical records, deposition transcripts, expert witness fees, crash reconstruction, and the like.

In a straightforward car crash claim that settles before suit is filed, those expenses can be modest. In a serious case involving permanent injury, a commercial truck, or a disputed medical question, they can be substantial, because proving the full value of a serious injury requires experts. Our office advances those costs during the case so you do not have to. They are then reimbursed out of the recovery, separately from the fee. Your written agreement will explain exactly how that works.

Medical bills and liens come out of the recovery, too

The third piece of the picture is the money owed to the people who treated you. If your health insurer paid your crash-related bills, it will usually claim a right to be repaid from your settlement. The same is true of Medicare, Medicaid, and the Bureau of Workers' Compensation if you were hurt on the job. Hospitals sometimes assert liens as well.

Resolving those claims is part of the work, not an afterthought. Negotiating a lien down can put thousands of dollars back in your pocket, and it is one of the places an experienced lawyer earns the fee. We wrote last year about the difference between what a hospital bills and what it actually accepts as payment in Billed vs. Paid; that same gap is often the starting point for lien negotiations.

The closing statement: where every dollar goes

When a case resolves, you will receive a written closing statement before any money is distributed. It lists the gross recovery, the attorney fee, each case expense, each lien or medical bill paid, and the net amount paid to you. You should read it line by line and ask about anything you do not understand. You are entitled to a clear accounting, and an honest lawyer wants you to have one.

Questions worth asking any injury lawyer

• Is the fee agreement in writing, and may I have a copy?
• What percentage is the fee, and does it change if the case goes to trial?
• Who advances case expenses, and how are they repaid?
• Will you handle the liens and medical bills, or is that on me?
• Who will actually be working on my case, and can I reach that person?

You should get straight answers to all five. If you get vague ones, keep looking.

What this means for you

Cost should never be the reason an injured person goes without a lawyer. Under a contingency fee you pay nothing up front, nothing during the case, and nothing at all if there is no recovery. What a delay in calling can cost you, on the other hand, is real. Evidence disappears, witnesses move, and Ohio's two-year deadline for most injury claims keeps running whether or not you are ready. In the meantime, the other driver's insurer may be asking you for a recorded statement that can be used against you later.