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Personal Injury Lawyer Contingency Fees Explained

Most injury lawyers charge contingency fees. When you hire a personal injury lawyer, you will be asked to sign a contingency fee agreement. You will likely have many questions. You have come to the right place.

My name is Joseph A. Nagy, and I am an experienced Edmonton injury lawyer. I have successfully resolved thousands of personal injury claims during my more than 20 years of personal injury law experience. My law firm, Joseph A. Nagy Injury Law, focuses on injuries resulting from motor vehicle accidents.

In this article, I answer the common questions clients ask about personal injury lawyer contingency fees. I give specific information about Joseph A. Nagy Injury Law contingency fees. And I invite you to contact me with any questions I may not have answered.

You may also be interested in my article Personal Injury Lawyer Disbursements Explained.

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Page Contents

How Contingency Fees Work

A contingency fee is the fee a personal injury lawyer charges for their services. It has two parts:

  • Payment is a percentage of the amount the insurance company pays for your personal injury claim.
  • Payment is contingent on the outcome of the case. You pay the fee if the injury lawyer successfully resolves your injury claim. You do not owe the fee if the injury lawyer does not win your case.

When you hire a personal injury lawyer, you will be asked to sign a Contingency Fee Agreement. The percentage is set by the law firm. Compensation is typically paid by the at-fault party’s insurance. The agreement will specify that the injury lawyer will not be paid unless you receive compensation for your injury, which is why it is often called a no win, no fee agreement.

The Contingency Fee Agreement must specify whether the lawyer charges a flat contingency fee or a graduated contingency fee, the percentage charged, and how it is paid. If you are uncertain about any of the language covering fees, or any other aspect of the agreement, always ask the lawyer to explain.

A flat contingency fee means the percentage charged remains the same until your case is resolved. The percentage does not increase even if your case takes longer to resolve, requires more work, or goes all the way to trial.

A graduated contingency fee means the percentage increases based on the time and the steps taken to resolve your case. A case that takes a long time to settle with the insurance company can result in a higher percentage charge. So can a case that is not settled but goes all the way to trial. Such factors can drive the fee up by as much as 10% or more. Most Alberta personal injury lawyers charge a graduated contingency fee.

The percentage and the type of fee both vary, and both are set by the individual injury lawyer. In general, the fee will reflect the lawyer’s experience, success rate, and area of practice. Bargain hunting is not the way to find the best personal injury lawyer.

In Alberta, personal injury lawyers are also required to charge GST for services.

Joseph A. Nagy Injury Law charges a flat 33% contingency fee. See Our Contingency Fees for a stage-by-stage comparison of what graduated and flat fees actually cost.

A no win, no fee agreement means you pay the injury lawyer’s contingency fee only if the case is won. You do not pay the contingency fee if the case is lost.

That does not necessarily mean you will owe the injury lawyer nothing. Win or lose, you may be charged for some payments the injury lawyer makes to third parties on your behalf. These payments are called disbursements.

Before you sign a contingency fee agreement:

  • Be certain you understand all the terms of the agreement.
  • Watch for any exceptions that might mean you are responsible for a payment.
  • Ask whether any disbursements are not covered by the contingency fee.
  • Ask whether you have to pay for any disbursements if the case is lost.

The injury lawyer should answer any questions you have. If you are not certain about the meaning of any wording in the contract, including legal costs, always ask.

Find out how I handle disbursements.

A personal injury lawyer contingency fee offers these important benefits to injury victims:

  • The contingency fee enables ordinary citizens to get justice for their personal injury claims. Victims who have suffered injuries, particularly serious injuries, are often unable to take on the costs of pursuing an insurance claim. A qualified and successful injury lawyer has the financial resources to handle those costs.
  • Payment of the fee is not due until your case is resolved. Until then, the injury lawyer usually pays the costs of your case. One exception is if the lawyer charges a retainer, which they use to help pay the costs of disbursements.
  • If the injury lawyer does not win your case, you do not pay. That means the injury lawyer should be very motivated to obtain the best possible compensation for your injury.
  • If the injury lawyer wins your case, the contingency fee is deducted from the compensation you receive from the insurance company.
  • In practice, the insurance company pays your compensation into the injury lawyer’s trust fund. The lawyer’s fees are deducted, and the remaining funds are then transferred to you.
  • Successful injury lawyers win their clients more net compensation from insurance companies. That means their clients receive more money than the insurance company initially offers. Find out how I deal with insurance companies.

Injury lawyers are successful if they can correctly evaluate the risks. When I enter into a contingency fee agreement, I already know the facts and potential risks of taking the case. My knowledge and experience as an injury lawyer will tell me whether:

  • I can win your case.
  • I can increase the net payment you will receive.
  • I can risk the resources needed to prove your case, including hiring medical and other personal injury experts.
  • I can recoup my firm’s costs from the insurance company.

Before You Sign

Ask these questions before you sign anything. My advice is, do not hire an injury lawyer who is unwilling to answer them in plain language.

  • Is your contingency fee flat or graduated? If it is graduated, what triggers each increase, and how high can it go?
  • Will the fee increase if my case goes to trial?
  • Is the percentage calculated before or after disbursements are deducted?
  • What disbursements do you expect in a case like mine, and who pays them while the case is proceeding?
  • Do I have to pay disbursements if my claim is unsuccessful?
  • Do you charge a retainer?
  • Do you charge interest on disbursements?
  • Is GST included in the percentage you have quoted, or added to it?

Write the answers down. The Contingency Fee Agreement you sign should reflect what you were told. If something in the written agreement does not match, ask about it before you sign.

Our flat 33% contingency fee described on this page applies to claims against an at-fault driver. Alberta’s Care-First no-fault system is scheduled to take effect on January 1, 2027. For accidents on or after that date, most claims will be handled as benefits disputes with your own insurer rather than as court claims against the driver who caused the crash, and disputes go to a tribunal rather than to a court. That is different work, and the fee arrangement for it will be explained to you at your free consultation.

For accidents before the changeover, nothing changes. Our flat 33% applies as it always has.

The Alberta government’s move to a no-fault system is not universally accepted by Albertans. Joseph A. Nagy Injury Law opposes the introduction of any cap, threshold, deductible or no-fault system that eliminates or erodes the right of injured Albertans to obtain fair compensation. Organizations including FAIR Alberta continue to campaign against the change, and Albertans who want the current system kept can still contact their MLA and add their voice. To learn more, read No-Fault Insurance in Alberta: What “Care-First” Means for Injured Albertans.

The Joseph A. Nagy Standard

Senior Lawyer Guarantee

We guarantee a knowledgeable and experienced injury lawyer will handle your injury claim from your first meeting until it’s successfully resolved.

  • No "Bait and Switch" Representation

    Your file is never handed off to junior associates or law students. You hire an injury lawyer with over 20 years of experience — and that same lawyer handles your case from start to finish.

  • Direct Access to Your Dedicated Lawyer

    Meet with your dedicated injury lawyer when you need legal advice on your case.

  • Strategy By Experienced Injury Lawyers, Not Algorithms

    Your dedicated injury lawyer will personally craft a custom legal strategy to win your case. We do not hand over legal strategies to algorithms or junior lawyers. We take the time to understand the unique impacts your injury has had on your life. We do not build strategies for easy settlements and quick paydays. We build strategies that will win at trial if needed.

  • We Are Your Ally Fighting the Billion Dollar Insurance Industry

    For more than 20 years, we have successfully taken on the insurance industry. We fight billion-dollar insurance companies, and we win!

More Money in Your Pocket!

Joseph A. Nagy Injury Law’s contingency fee means more money in your pocket!

  • No Win, No Fee

    If we don't win, you don't pay our contingency fee. Period.

  • Flat Contingency Fee

    We charge a transparent flat 33% contingency fee. Unlike most Edmonton injury law firms, we do not use 'graduated fees' that increase if your case requires more work or goes to trial.

  • No Retainer Fee

    Some lawyers charge a retainer fee. We do not.

  • Disbursements

    Disbursements are out-of-pocket costs such as medical reports and expert opinions. Joseph A. Nagy Injury Law pays the upfront costs of all disbursements. We recover those costs from the at fault party’s insurer (with very few exceptions). If we don't win, we are not paid.

  • Transparent Fee

    Joseph A. Nagy Injury Law prides itself on having publicly available, transparent fees. What we advertise is what you get!

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