What Percentage Does a Lawyer Get in a Settlement Case? How Contingency Fees Work
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Last reviewed: October 5, 2026. This article is general information, not legal advice. Fee rules and caps differ by state and by type of case, so read your own fee agreement carefully and check your state's rules.
If you've been hurt and a lawyer has offered to take your case "on contingency," you'll want to know how much of the money will actually reach you. It's a fair question, and the answer is written down, or should be, before your lawyer does any work. Here's what percentage a lawyer gets in a settlement case, what decides it, and where the law sets limits.
Short answer: there's no fixed percentage set by law in most cases. In a contingency fee case, the lawyer's share is the percentage stated in your written fee agreement, often with a higher percentage if the case goes to trial. It must be reasonable, and certain kinds of cases (such as federal tort claims, some medical malpractice claims and workers' compensation) have legal caps or need a judge's approval.
How a contingency fee works
With a contingency fee, the lawyer is paid only if there's a recovery, through a settlement, verdict or award. If there's no recovery, there's usually no fee. In exchange for taking that risk, the lawyer receives a percentage of what's recovered.
The ABA Model Rules set the basic ground rules most states follow:
- It must be reasonable. Rule 1.5(a) says a lawyer "shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses." Whether a fee is fixed or contingent is one of the factors used to judge reasonableness.
- It must be in writing and signed by you. Rule 1.5(c) requires the percentage for settlement, trial or appeal, and how expenses are handled.
- You get a statement at the end. When the case ends, Rule 1.5(c) requires the lawyer to give you a written statement showing the outcome, what you receive and how it was calculated.
- Some cases can't be on contingency. Rule 1.5(d) bars contingent fees in criminal defense and in divorce or support matters where the fee depends on getting the divorce or the amount of alimony, support or a property settlement.
Fees vs. costs: the detail that changes your take-home
The fee is the lawyer's payment for their work. Costs (also called expenses) are money spent on the case: court filing fees, medical records, expert witnesses, depositions and so on. Costs are usually repaid from the settlement too, separately from the fee.
Whether the percentage is calculated before or after costs matters. Here's a simple, made-up example with a one-third fee, a $100,000 settlement and $10,000 in costs:
| Method | Lawyer's fee | Costs repaid | You receive (before liens) |
|---|---|---|---|
| Fee on the gross ($100,000) | $33,333 | $10,000 | $56,667 |
| Fee after costs ($90,000) | $30,000 | $10,000 | $60,000 |
Medical liens, health-insurer claims or Medicare repayment may then come out of your share. Ask your lawyer for a sample settlement statement before you sign, so there are no surprises.
Where the law caps the percentage
In most ordinary injury cases the percentage is a matter of agreement. But some laws set firm limits. These are examples; check the rule that applies to your case.
Claims against the federal government
If you're suing the United States under the Federal Tort Claims Act (for example, an accident with a federal vehicle), 28 U.S.C. § 2678 says no attorney shall charge fees "in excess of 25 per centum of any judgment rendered pursuant to section 1346(b) of this title or any settlement made pursuant to section 2677 of this title, or in excess of 20 per centum of any award, compromise, or settlement made pursuant to section 2672 of this title." In plain terms: 20% for an administrative settlement, 25% once a lawsuit is involved. Charging more is a federal crime.
Medical malpractice in California
California Business and Professions Code § 6146 limits contingency fees in professional negligence claims against health care providers to:
- 25% of the amount recovered if the case settles before a complaint or arbitration demand is filed; and
- 33% if it's resolved by settlement, arbitration or judgment after filing.
If the case goes to trial or arbitration, the lawyer can ask the court or arbitrator for a higher fee for good cause. Under the statute, "recovered" means the net amount after deducting the costs of the case, so in California's malpractice cases the cap is applied after costs. Many other states have their own malpractice fee rules, so check yours.
Workers' compensation
Workers' comp fees are often controlled by statute or need approval. Two examples:
- Florida. Section 440.34 of the Florida Statutes says no fee may be paid unless approved by the judge of compensation claims, and sets the formula: 20% of the first $5,000 of benefits secured, 15% of the next $5,000, 10% of the remaining benefits provided during the first 10 years after the claim is filed, and 5% of benefits after 10 years. On $20,000 of benefits secured within the first 10 years, that formula gives $1,000 + $750 + $1,000 = $2,750.
- California. Labor Code § 4906 says a fee agreement is not enforceable "in excess of a reasonable amount," and the Workers' Compensation Appeals Board may decide what's reasonable.
If you're in a workers' comp case, see I won my workers' comp case, now what? for what happens after.
Practical tips before you sign
- Get the agreement in writing, and keep a copy.
- Check each percentage for settlement before suit, after suit, at trial and on appeal.
- Ask how costs are handled: before or after the fee, and who pays them if you lose.
- Ask about liens: who will negotiate medical bills and insurance claims, and whether there's an extra charge.
- Compare offers. You can talk to more than one lawyer. Our guide on how lawyers decide to take a case explains what they look at.
- Check the final statement. When the case ends, compare the settlement statement with your agreement. If something doesn't add up, ask. For delays in getting paid, see how long can a lawyer hold your settlement check?
Is there a standard percentage lawyers take from a settlement?
There is no single legal standard. The percentage is whatever you and your lawyer agree in a written contingency fee agreement, as long as it is reasonable and within any legal cap that applies. Agreements often use a higher percentage if the case goes to trial or appeal.
Does the lawyer's percentage come out before or after costs?
It depends on your agreement, and the ABA rule requires the agreement to say which. Calculating the fee after costs are deducted usually leaves more money for you. Ask your lawyer to show you both ways with sample numbers.
Do I owe anything if I lose?
Usually no fee, because the fee is contingent on a recovery. But you might still owe case costs such as filing fees or expert fees. Under ABA Model Rule 1.5(c), the agreement must clearly tell you about any expenses you'll owe even if you lose.
Can I negotiate the percentage?
Yes. Fees are a contract, and you can ask about a lower percentage, a sliding scale, or how costs will be handled. Compare written terms from more than one lawyer before signing.
Are there cases where the law limits the percentage?
Yes. Examples include claims against the federal government under the Federal Tort Claims Act (20% or 25% caps), California medical malpractice cases (25% or 33%), and workers' compensation in many states, where a judge or board must approve the fee.
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About Farrukh Shahzad
Farrukh Shahzad is the founder and researcher behind TodayinTrend. He is not a lawyer and does not give legal advice — he reads the statutes, court rules and official data, then explains what they actually say in plain English.
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