By Amanda J. Bonnesen, Esq. | Managing Partner, Berger and Green, P.C. | Last reviewed: September 2026
Quick answer: A contingency fee means a lawyer’s fee depends on recovering money for the client. In Pennsylvania, Rule 1.5 requires a contingent fee agreement to be in writing and to explain how the fee is calculated, including the percentages that may apply at settlement, trial, or appeal, how litigation expenses are handled, and whether those expenses are deducted before or after the fee is calculated. Pennsylvania Rule of Professional Conduct 1.5
For someone dealing with medical bills, missed work, and the uncertainty of an injury claim, the phrase “no fee unless there is a recovery” can sound simple. The actual agreement deserves a closer look. Attorney fees and case expenses are different things; the percentage can depend on the stage of the case, and Pennsylvania has special rules for certain types of claims.
The most useful question is not simply, “What percentage does the lawyer charge?” It is, “How will every deduction be calculated, and what will I receive at the end?”
What Is a Contingency Fee Agreement?
A contingency fee is a payment arrangement in which the lawyer’s fee is tied to the outcome of the case. Instead of billing the client by the hour throughout the matter, the lawyer receives an agreed percentage of a settlement, verdict, or other recovery if the claim succeeds.
If there is no recovery, the lawyer generally does not collect the contingent attorney fee. That does not automatically answer what happens to case expenses, however. The written agreement should explain whether the client can be responsible for expenses such as filing fees, record charges, deposition costs, or expert fees if the case does not produce a recovery.
What Pennsylvania Rule 1.5 Requires
Pennsylvania’s Rules of Professional Conduct do more than require the parties to agree on a percentage. Rule 1.5(c) says a contingent fee agreement must be in writing and must state the method used to determine the fee.Read Pennsylvania Rule 1.5
- The percentage or percentages that will accrue to the lawyer if the matter resolves by settlement, trial, or appeal.
- The litigation and other expenses that will be deducted from the recovery.
- Whether those expenses are deducted before or after the contingency fee is calculated.
- At the end of the matter, the lawyer must provide a written statement explaining the outcome and, if money was recovered, the remittance to the client and how it was determined.
Rule 1.5 also prohibits an illegal or clearly excessive fee. It does not create one mandatory percentage for every Pennsylvania personal injury case. That distinction matters because online articles sometimes describe one-third or 40 percent as if Pennsylvania law itself sets those numbers. It does not.
There Is No Single “Standard” Contingency Percentage
Personal injury firms commonly advertise contingency arrangements, but the exact percentage is a contract term and can vary by firm and by the stage of the case. An agreement may use one percentage throughout the case or different percentages depending on whether the matter settles before suit, after litigation begins, at trial, or on appeal.
Before signing, a client should ask the lawyer to walk through the agreement using real numbers. A percentage that looks straightforward on the first page can produce a different net recovery depending on when expenses are deducted.
A Simple Example: Why “Before or After Costs” Matters
Assume, only for illustration, that a case resolves for $100,000, the agreed fee is one-third, and reimbursable case expenses total $5,000. If the fee is calculated on the gross recovery first, the fee would be about $33,333, then the $5,000 in expenses would be deducted, leaving about $61,667 before any other liens or required payments.
If the same agreement instead deducts $5,000 in costs first and calculates one-third on the remaining $95,000, the fee would be about $31,667 and the client would receive about $63,333 before other deductions. This is only a math example, not a statement of what any particular lawyer charges. The point is that the order of the deductions can change the client’s net recovery.
Attorney Fees and Case Expenses Are Not the Same Thing
A contingency fee pays for legal services. Case expenses are the out-of-pocket costs of developing and litigating the claim. Depending on the case, those expenses may include:
- fees for medical records, imaging, and certified documents;
- court filing and service fees;
- deposition transcripts and court reporters;
- expert witness or consulting fees;
- accident reconstruction, inspection, or investigative expenses;
- trial exhibits, demonstrative evidence, and other litigation costs.
Some firms advance these expenses while the case is pending and seek reimbursement from the recovery. Other agreements may allocate costs differently. The client should not assume that “no fee unless we win” also means “no costs under any circumstances.” The written contract controls, subject to applicable law and professional rules.
A Pennsylvania Auto-Claim Exception Many Articles Miss
Contingency fees are common in third-party injury claims against an at-fault driver or other responsible party. But Pennsylvania law treats certain first-party motor-vehicle benefits differently. Under 75 Pa.C.S. § 1798, an attorney’s fee for representing a claimant in connection with specified first-party benefits may not be calculated or paid on a contingent-fee basis; the statute instead permits a reasonable fee based on actual time expended.See 75 Pa.C.S. § 1798
That does not mean a contingency fee is prohibited for every claim arising from a car crash. A third-party bodily injury claim and a first-party benefits dispute are legally different matters. If both are involved, ask the lawyer how the fee arrangement applies to each part of the case.
Special Rule for Injured Patients Who Are Hospitalized
Pennsylvania also has a less commonly discussed rule for people who are confined in a hospital or sanitarium because of an injury. Under 42 Pa.C.S. § 7101, an attorney generally may not enter into a wholly or partly contingent compensation agreement with that injured patient during the first 15 days of confinement, subject to the statute’s written-notice exception.Read 42 Pa.C.S. § 7101
This is a good example of why a Pennsylvania-specific article should not rely only on national summaries of contingency fees. State law can change how and when an agreement may be made.
What Happens to the Settlement After a Case Resolves?
The settlement check is not always the same as the amount the client ultimately takes home. A final distribution may account for the agreed attorney fee, reimbursable case expenses, medical liens, health-insurance reimbursement claims, Medicare or Medicaid interests, and other legally required payments.
Rule 1.5(c) requires a written closing statement in a contingent-fee matter that states the outcome and, when there is a recovery, shows the client’s remittance and how it was calculated. A client should be able to see the arithmetic rather than receiving only a final number.
Case Study: Why Case Complexity Can Affect Costs
Published results provide a useful reminder that two injury claims can require very different levels of investigation. In one anonymized matter, Berger and Green reported obtaining a six-figure settlement for a person injured in a rear-end collision involving a tractor-trailer in a construction work zone. The firm’s published result does not disclose the client’s fee agreement, litigation expenses, or net recovery, so those figures should not be assumed.
What the example does show is why the details of a fee contract matter. A claim involving a commercial truck, a work zone, significant injuries, and disputed liability can require more investigation and expert work than a straightforward claim. Those expenses are separate from the attorney’s percentage and should be addressed clearly in the written agreement.
Questions to Ask Before Signing a Contingency Fee Agreement
- What percentage applies if the case settles before a lawsuit is filed?
- Does the percentage change after suit is filed, at trial, or on appeal?
- Are expenses deducted before or after the attorney fee is calculated?
- Who is responsible for case expenses if there is no recovery?
- Will I be consulted before major expert or litigation expenses are incurred?
- Could medical liens or reimbursement claims reduce my final payment?
- Will I receive an itemized closing statement showing the fee, expenses, liens, and net amount?
- Does any part of my matter involve first-party auto benefits or another claim with special fee rules?
Fee terms are one part of choosing counsel. Experience with the type of claim, communication, litigation resources, and who will actually handle the file also matter.
Frequently Asked Questions
Do I pay a personal injury lawyer if I lose in Pennsylvania?
Under a typical contingency arrangement, the attorney does not collect the contingent fee if there is no recovery. Case expenses are a separate issue, however. The written agreement should state whether the client may owe expenses if the claim is unsuccessful.
What is the standard contingency fee percentage in Pennsylvania?
Pennsylvania Rule 1.5 does not set one universal percentage for personal injury cases. The fee must not be illegal or clearly excessive, and the written agreement must explain the method for determining the fee, including any percentages that apply at settlement, trial, or appeal.
Are case costs included in the contingency fee?
Not necessarily. Attorney fees and litigation expenses are separate concepts. The agreement should identify deductible expenses and state whether they are taken from the recovery before or after the attorney fee is calculated.
Can a contingency fee increase if a case goes to trial?
An agreement may provide different percentages at different stages, but those terms should be disclosed in the written contingent-fee agreement. A client should understand the triggers before signing.
Are contingency fees allowed for every Pennsylvania car-accident matter?
No. Pennsylvania law prohibits a contingent fee for representation involving certain first-party motor-vehicle benefits under 75 Pa.C.S. § 1798. A third-party bodily injury claim is different, so the fee structure may depend on the specific claim being handled.
What should I receive when the case ends?
In a contingent-fee matter, Pennsylvania Rule 1.5(c) requires the lawyer to provide a written statement explaining the outcome and, if there is a recovery, the remittance to the client and how it was determined.
Disclaimer
This article is for general educational purposes and is not legal advice. Attorney-fee agreements and case expenses vary by lawyer, claim type, and circumstances. Pennsylvania law may impose special rules on particular matters, and laws and professional rules can change. Reading this article does not create an attorney-client relationship. Anyone considering a contingency fee agreement should review the written terms carefully and consult a licensed Pennsylvania attorney about questions specific to the matter.
