What 'No Attorney Fees Unless We Win' Actually Costs: A Sample Settlement Statement

Short answer: "No attorney fees unless we win" means there is no fee if there is no recovery. When there is a recovery, three things come out of the gross figure before you are paid: the attorney fee, the case costs the firm advanced, and any medical bills or reimbursement claims still owed. Our fee is one-third of the total settlement the insurance company pays, calculated on the gross amount, and we advance case costs that are repaid from the recovery. Below is a hypothetical statement showing how the arithmetic works, including why the order of deductions changes what you take home.

Our terms, in one paragraph

You pay nothing up front, and no attorney fees unless we win. Our fee is one-third of the total settlement the insurance company pays, calculated on the gross amount before case costs and medical reimbursements are deducted. While the case is open, we pay the case costs, such as records, filing fees, deposition transcripts, and expert fees, and those costs are repaid from the recovery at the end. Your signed agreement spells out exactly how each piece is handled, and the agreement is what controls. For more on how contingency fees work in general, see how much a personal injury lawyer costs in Utah.

A hypothetical settlement statement

Hypothetical example. Every figure below is invented for illustration. It does not describe any real client, case, or result, and it is not a prediction of what any claim is worth.

Assume a case settles for $90,000, and assume for this first version that the fee is figured on the gross amount before costs are subtracted.

Two things stand out. First, the net in this example is well under half the gross, largely because of the medical reimbursement lines. Second, the $6,000 reduction in the health insurer's claim went straight into the client's pocket. Reimbursement claims are frequently negotiable, and that work affects the net as much as the settlement figure does. See medical liens after an accident in Utah for how those claims work.

Same settlement, costs subtracted first

Now change one assumption. If the agreement calls for case costs to come off the top before the fee is calculated, the math shifts:

The gap is exactly one-third of the costs. With $6,000 in costs it is $2,000. In a filed case where costs reached, say, a hypothetical $30,000 because of expert witnesses and depositions, the gap would be $10,000. The more a case costs to build, the more this one clause matters.

Fee terms vary from firm to firm, so this page cannot tell you which method any other firm's agreement uses. The written agreement answers that question, and it is what controls, so ask any lawyer, including us, to point to the sentence in the agreement that does. At West Injury Law, our fee is one-third of the total settlement the insurance company pays, calculated on the gross amount before case costs and medical reimbursements are deducted — the order shown in the first statement above.

What Utah's Rule 1.5(c) requires in writing

Utah does not allow a contingency arrangement to rest on a conversation. Rule 1.5(c) of the Utah Rules of Professional Conduct requires the agreement to be written and signed by the client, and to state:

• How the fee is determined, including the percentage at settlement, trial, or appeal
• Which litigation and other expenses are deducted from the recovery
• Whether those expenses are deducted before or after the contingent fee is calculated
• Any expenses the client owes whether or not the client prevails, stated clearly

The same rule requires a written statement when the matter concludes, showing the outcome and, if there was a recovery, what was paid to the client and how that figure was determined.

The closing statement you receive

At the end of a case with a recovery, you get a written closing statement laid out much like the hypothetical above: the gross figure, the fee and how it was computed, each case cost, each payment to a medical provider or reimbursement claimant, and your net. Read every line. If a cost looks unfamiliar or a reimbursement amount does not match what you were told, ask before you sign off on it.

What happens if there is no recovery

No recovery means no attorney fee. Whether you would owe anything toward the costs that were advanced is a separate question, and it is one Rule 1.5(c) requires the agreement to address. Ask about it before you sign, and make sure the answer you hear matches the paper.

Questions worth asking at the consultation

• Is the fee figured on the gross recovery, or on the recovery after costs?
• What kinds of case costs are typical for a case like mine, and will I see them as they are incurred?
• If there is no recovery, do I owe anything for costs?
• Who negotiates medical reimbursement claims?
• Will the closing statement itemize every deduction?

Common questions

Does a bigger settlement always mean more money for me?

Usually, but not automatically. If a case has to be filed and costs rise sharply, a modestly higher gross can produce a similar or lower net. That tradeoff is covered in settle early or wait.

Why does the settlement calculator show a different number?

The settlement calculator gives a rough gross range. It does not subtract fees, costs, or reimbursement claims, which is why a line-by-line statement like the one above is the more useful picture of what you keep.

Are future medical costs paid out of the settlement too?

A settlement is usually a single payment meant to cover past and future losses. How future care is valued is explained in future medical costs and lost earning capacity in Utah.

Can reimbursement amounts change after the case settles?

Final amounts can be confirmed only after the settlement, which is one reason the closing statement comes at the end rather than the beginning.

Ask us to walk through the numbers

Our legal team is glad to go through the agreement line by line before you sign anything. You can also read how Utah car accident attorneys handle insurance claims. Call (801) 921-5134 or contact us online.

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