What is the sharing ratio for attorneys in a personal injury settlement?

Question

What is the sharing ratio for attorneys in a personal injury settlement? Is it based on the gross settlement or net?

Erven Nelson · Answer

That depends on how the fee agreement was written.  Usually, it is on the gross proceeds actually received.

Gregory Janks · Answer

Attorney fees in PI cases in Michigan are restricted by the  Michigan Court Rules to be no more than one third of the amount recovered (MCR 8.121(B)). This is if you signed a so-called contingent fee agreement. You could also have agreed to pay the lawyer by the hour,  in which case the fee would be whatever the agreed to hourly rate was x the # of hours spent (and the lawyer would have to give you a reasonably detailed billing). The "math" is to take the gross settlement amount, deduct any costs of the litigation the attorney's office has incurred and then take their contingent fee from the net settlement (MCR 8.121(C)).

Ronald A. Steinberg · Answer

In Michigan, we are restricted to no more than 33 1/3% after reimbursement of costs. So, assuming a $10,000 settlement and exactily $1,000 in costs, the lawyer gets his $1,000 back and then 1/3 of the remaining $9,000, or $3,000.

David Stoddard · Answer

I assume you mean the ration between attorney and client, not attorney and co-counsel. It differs from attorney to attorney and case to case, but it is normally 1/3 to attorney plus costs. With most attorneys if is 1/3 of gross. However, the contingency fee agreement is supposed to be in writing and specify whether it is gross or net. By net, I mean net after costs of the case such as court fees, expert fees, process servers, and deposition costs are deducted. Medical bills and Insurance liens are not usually deducted to arrive at netr.

Mark Leonardo · Answer

Other than for medical malpractice, it is entirely negotiable.  Most lawyers charge 33% of the gross recovery plus what ever costs they advance.  Oftentimes it will increase to 40% at a certain point in the litigation process.  Some lawyers (very few) start at 25%.  So if fees are your primary concern, shop around.  But I would look for the attorney with the most experience with your type of incident and/or injury because they would typically recover the most, so the extra 8% would be insignificant in the grand scheme of things.

Christian Joseph Menard · Answer

You need to look at your fee agreement that you signed with your attorney as that ratio should be clearly stated, as well as whether it comes from the gross or net recovery.

Howard Mishkind · Answer

Not sure what you mean by sharing ratio. If you mean the percentage of the attorney fee, it is usually one-third of the total recovery to as much as forty (40%) percent plus reimbursement of expenses advanced by the attorney.

James Eugene Hasser · Answer

It varies and depends on the terms of your fee contract with the lawyer Look at the fee agreement. It should spell it out. Typically, the % fee is from gross settlement proceeds, though.

Thomas Edward Gates · Answer

Normally 33% of the gross settlement.

Mark T. Peters · Answer

It is based on the gross recovery and can run anywhere from 25% to 40%.

Barry Rabovsky · Answer

We would be happy to provide you with a free consultation if you call my office at either of the numbers listed below. If my office accepts your case, there is no fee charged unless we are able to obtain a settlement for you.

Stephen Lombardi · Answer

Your question is unclear. "Sharing ratio" could refer to at least two   things, the amount they share with the client or with each other. Assuming it's   referring to each other, it could be based on either gross or net. It all   depends on the agreement made at the inception of the case and how much work   each firm performed. Did they live up to their promises? Or not?

Brian Franciskato · Answer

Depends on the contract.  In Missouri, it can be either a percentage of the gross settlement or a percentage of the net settlement, after re-imbursement of expenses.

Andrew Velonis · Answer

It is based on the fee. There are a number of variables.  If one attorney refers a case to another, one-third of the fee is standard.  If the client switches attorneys, the first one can claim "quantum meruit" which is basically an hourly rate. If the first attorney obtained an offer from the Defendant, he can claim the amount that would have been his fee from that offer.  Finally, the fee can be divided according to who did what work in proportion to the other, and if they can't agree, the issue can be arbitrated.

John Turck · Answer

I assume you mean in a contingency fee agreement. If so, the only appropriate way in Michigan is for the attorney to receive a maximum 1/3 fee, which is calculated on the net recovery (i.e. after costs and expenses are deducted from the gross recovery).

Eric Farber · Answer

It depends what your agreement is with your attorney.  Many are from the gross and the client pays the costs after the attorneys' fees are deducted.  Some are off the net after the costs are deducted.

Paul Whitfield · Answer

Gross settlement. How could it be net. You may owe more medical bills than the settlement no lawyer would likely take a case on such basis. It is normally one third and if your lawyer knows what he is doing he will usually get you more net than if you did not have him

Fareesh Sarangi · Answer

I'm not sure what you mean by "sharing ratio".  Attorneys almost always receive the agreed upon percentage from the gross settlement.  That means before any expenses and costs have been taken out.

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