One of the biggest concerns people have after an accident is whether they can afford a lawyer. Medical bills are piling up, income may have stopped, and the idea of paying hourly legal fees on top of everything else feels impossible. That is exactly why most personal injury attorneys, including the team at Bennerotte & Associates, work on a contingency fee basis. It means you pay nothing upfront, nothing out of pocket during the case, and no fee at all unless your attorney recovers compensation for you.
What Is a Contingency Fee?
A contingency fee is a payment arrangement where the attorney’s fee is contingent on the outcome of the case. If the case results in a settlement or jury verdict in your favor, the attorney receives a percentage of the recovery. If the case is unsuccessful and no compensation is recovered, you owe no attorney fee.
This structure removes the financial barrier that would otherwise prevent many injured people from pursuing valid claims. It also aligns your attorney’s interests with yours. The more your case is worth, the more the attorney earns, which creates a strong incentive to fight for the highest possible result.
How the Percentage Works
Contingency fees in personal injury cases are typically a percentage of the total recovery. The exact percentage can vary depending on the firm and the complexity of the case, but it is always agreed upon in writing before any work begins.
The fee agreement will specify the percentage, when it applies, and whether it changes at different stages of the case. For example, some agreements set a lower percentage if the case settles before a lawsuit is filed and a higher percentage if the case goes to trial. This reflects the additional time, resources, and risk involved in litigation.
Minnesota requires that contingency fee agreements be in writing and signed by the client. The agreement should clearly explain how the fee is calculated, what costs are deducted, and how the final distribution of funds works. You should always read the agreement carefully and ask questions about anything that is unclear before signing.
What About Case Costs and Expenses?
Attorney fees and case costs are two different things. Costs are the out-of-pocket expenses incurred during the handling of your case. They can include court filing fees, fees for obtaining medical records, costs of depositions and expert witnesses, accident reconstruction reports, postage, and other expenses that arise during investigation and litigation.
How costs are handled varies by firm. In many contingency fee arrangements, the law firm advances these costs during the case and is reimbursed from the settlement or verdict. If no recovery is made, some firms absorb the costs entirely while others may still seek reimbursement. This is an important detail to clarify in your fee agreement.
At Bennerotte & Associates, we advance case costs so that our clients never have to pay anything out of pocket while their case is being handled.
Why Contingency Fees Benefit Injured People
The contingency fee model exists because personal injury cases involve people who are already dealing with financial hardship. A car accident victim recovering from surgery cannot afford to pay $300 or $400 per hour for legal work. A family pursuing a wrongful death claim after losing a loved one should not have to choose between paying for a funeral and paying for a lawyer.
Contingency fees level the playing field. They give individuals the ability to go up against insurance companies and large corporations that have legal teams on retainer. Without this model, many people with legitimate claims would simply walk away because they could not afford representation.
The system also creates accountability. An attorney who works on contingency takes on financial risk with every case they accept. If the case does not result in a recovery, the attorney has invested time and money with no return. This means contingency fee attorneys are selective about the cases they take and motivated to achieve the best possible outcome once they do.
What to Look for in a Fee Agreement
Before hiring a personal injury attorney, make sure the fee agreement answers these questions clearly. What percentage does the attorney receive? Does the percentage change if the case goes to trial? How are costs handled, and who pays if the case is unsuccessful? Are there any circumstances where you could owe money even if no recovery is made? When and how will you receive your share of the settlement?
A reputable firm will walk you through the agreement, explain every provision, and give you time to review it. If any firm pressures you to sign immediately or is vague about how fees and costs work, that is a red flag.
How Settlements Are Distributed
When a personal injury case settles or a jury awards damages, the funds are not handed over as a lump sum. The distribution follows a structured process. The settlement check is deposited into the attorney’s trust account. The attorney’s fee is deducted based on the agreed percentage. Case costs and expenses are reimbursed. Any outstanding medical liens, such as amounts owed to health insurers or medical providers who treated you on a lien basis, are resolved. The remaining balance is paid to you.
Your attorney should provide a written settlement statement that shows exactly how every dollar was allocated. You have the right to review this statement and ask questions about any deductions.
Free Consultation, No Obligation
Understanding how fees work is part of making an informed decision about your case. If you have been injured in an accident in Eagan, St. Paul, or anywhere in Minnesota, contact Bennerotte & Associates for a free consultation. There is no obligation, and you will never pay a fee unless we recover compensation for you. You can also learn more about our fee structure on our cost to hire an injury lawyer page.
