QUESTION
What are the standard terms for distribution of funds for an accident?
Asked on Oct 03rd, 2012 on Personal Injury - California
More details to this question:
Does the lawyer usually get one-third of the gross, the accident victim gets two-third and pays the expenses with the two-thirds?
20 ANSWERS
Depends upon the contract.
Answered on Oct 07th, 2012 at 12:58 PM
Personal Injury Attorney serving Marietta, GA
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Law Office of Ronald Arthur Lowry
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Yes, normally that is how it is done.
Answered on Oct 04th, 2012 at 5:24 PM
Bankruptcy Attorney serving Bellevue, WA
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Wild Sky Law Group, PLLC
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The way you lay it out seems standard. However, I usually won't take more in attorney's fees than a client recovers. Typically, I split the difference with them even though the contract gives me the right to take 1/3 of the gross recovery.
Answered on Oct 04th, 2012 at 5:24 PM
Ronald A. Steinberg
Under Michigan law, the costs come off the top, and then the lawyer and the client split the remainder 1/3 to the lawyer and 2/3 to the client.
Answered on Oct 04th, 2012 at 5:23 PM
Alternative Dispute Resolution Attorney serving Austin, TX
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Law Offices of Steven D. Urban
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There is no standard, although most attorneys will negotiate a split similar to what you have described.
Answered on Oct 04th, 2012 at 5:23 PM
Insurance Defense Litigation Attorney serving Auburn, CA
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Graves Law Offices
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Bottom line it doesn't matter what is standard it matters what the fee agreement you signed provides, because it is contractual and it is what you agreed to when you signed the fee agreement. However, it is typical that personal injury attorney charges 1/3 of gross and the costs then are deducted from the balance and plaintiff gets what is left. But again, what is standard really doesn't matter review the fee agreement that you executed at the outset.
Answered on Oct 04th, 2012 at 5:22 PM
Thomas Edward Gates
Close, all of your creditors are paid, your attorney gets his agreed to percentage, his costs are paid, and then the balance is given to the victim.
Answered on Oct 04th, 2012 at 5:21 PM
Criminal Defense Attorney serving Anderson, SC
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The David F. Stoddard Law Firm
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Most attorneys get 1/3 or the gross. Some take 1/3 of the net after costs are taken out . In all cases, the attorney reimburses himself for the costs of the case. The only difference is whether the attorney computes the 1/3 after reimbursing the costs or before. Contingency fee retainers are required to be in writing, and the rule that requires them to be in writing require that the agreement specify whether the percentage is applied to the gross recovery or the net recovery.
Answered on Oct 04th, 2012 at 5:21 PM
Personal Injury — Plaintiff Attorney serving Taylor, MI
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Downriver Injury & Auto Law
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IT all depends on the fee agreement. Review a copy of the fee agreement.
Answered on Oct 04th, 2012 at 5:20 PM
Personal Injury Law Attorney serving Naperville, IL
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Law Office of Barry R. Rabovsky
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Please consult an attorney.
Answered on Oct 04th, 2012 at 5:19 PM
The attorney takes his percentage, and then all other deductions are made (expenses, medical bills (if applicable). The client gets the remainder.
Answered on Oct 04th, 2012 at 5:18 PM
Arbitration & Mediation Attorney serving Ann Arbor, MI
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Blaske and Blaske PLC
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Assume a gross recovery of $10,000, and assume costs and expenses of $1,000. Costs and expenses are taken off the top and reimbursed to whomever paid them (i.e. if you had paid $750 and your lawyer had paid $250, you would each be reimbursed those respective amounts). That leaves $9,000 as the net recovery. Under a contingency fee, the lawyer then gets 1/3 of the net recovery: $3,000. The client receives 2/3 of the net recovery: $6,000. If there are liens, those typically come directly out of the client's net recovery.
Answered on Oct 04th, 2012 at 5:18 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
In NJ, I first take expenses out of gross, then 1/3 to counsel, 2/3 to client subject to any liens or copays protected.
Answered on Oct 04th, 2012 at 5:18 PM
Truck Accidents Attorney serving Indianapolis, IN
Partner at
Craig, Kelley and Faultless LLC
3 Awards
It depends on the professional fee agreement. All contingency fee agreements are required to be in writing. Fee agreements do vary from attorney to attorney but since they are in writing the client should be aware of the terms when hiring the attorney. If there was no offer before the attorney was hired then it is pretty typical for the lawyer to take a fee from the gross settlement. That fee might be 25%, 331/3rd%, 37% or even higher.
Answered on Oct 04th, 2012 at 5:17 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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You have it right. the attorney fee is commonly one third in north America and I think South America as well (so said my Buenos Aires atty friend). Unpaid medical bills and liens have to be paid from the client funds. Client gets a net take home pay so to speak. It cant be otherwise. someones medical bills could be hundreds of thousands of dollars. Medical liens can be enormous your lawyer has little or no control over those enormous figures although he often negotiates in trying to get them lowered if he can if the case settles the lawyer will usually be paid a fair fee for his time and effort. If the case goes to trial usually the lawyer spends more time than the one third will cover and he takes a loss. Lawyers are not over paid and they usually get a client a settlement greater after deducting their fee than the client could have gotten on their own one of the reasons is that insurance companies hoodwink claimants, squeeze claimants, misrepresent things to claimants and fail to tell claimant sTHEY ARE ENTITLED TO DAMAGES FOR PAIN AND SUFFERING, FAIL TO TELL CLAIMANTS THEY ARE ENTITLED TO DIMINTION IN VALUE ON THEIR AUTO (AFTER REPAIR), AND FAIL TO TELL THEM ABOUT CLAIMING LOSS OF WAGES. INSURANCE ADJSUTERS WILL USUALLY VOLUNTEER NOTHING. They all advertise they are here to help you. they are not. They are here to make a profit for the company and to make your settlement a minimum got all this?
Answered on Oct 04th, 2012 at 5:17 PM
1 Award
The lawyer gets one-third of the gross or total amount collected from the insurance company. Out of the settlement proceeds the attorney usually pays the medical expenses as the attorney may have given a guarantee that he will pay such or the medical provider has advised the attorney of its lien against the settlement proceeds for payment of its medical expense.
Answered on Oct 04th, 2012 at 5:16 PM
Lisa Hurtado McDonnell
Usually that they standard but yoU need to read you fee agreement with your lawyer. Some lawyers pay the medical bills first and give the client what's left.
Answered on Oct 04th, 2012 at 5:16 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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That is pretty standard. However, it would depend on your contract with the lawyer.
Answered on Oct 04th, 2012 at 5:15 PM
Business Law Attorney serving Walnut Creek, CA
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Hirsch, Closson, McMillan & Schroeder, APLC
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That should be spelled out in your fee agreement with your lawyer. It is all negotiable.
Answered on Oct 04th, 2012 at 5:15 PM
Steven D. Dunnings
Expenses are deducted from the top, then the attorney gets 1/3 of the balance.
Answered on Oct 04th, 2012 at 5:15 PM