A personal injury attorney in Pennsylvania and New Jersey typically costs nothing upfront. Most work on a contingency fee, taking 33⅓% of the recovery if the case settles and 40% if it goes to trial. Freundlich & Littman, LLC represents injured people, and this article explains how those fees work so you can judge any fee agreement.
How Contingency Fees Work in Personal Injury Cases
Under a contingency arrangement, the attorney is paid only if you recover money. There is no hourly bill, no retainer, and no payment while the case is pending. If the case produces no recovery, you owe no attorney fee.
The fee is a percentage of the gross or net recovery, depending on the written agreement. That distinction matters, so read it closely. A fee calculated on the gross settlement is taken before case costs are subtracted. A fee calculated on the net is taken after costs come off, which leaves you with more money.
Typical fee percentages follow the stage of the case:
- Pre-suit settlement: commonly 33⅓%
- After a lawsuit is filed: often 33⅓% to 40%
- Trial or appeal: often 40% or higher
The percentage rises because the work rises. Litigation means depositions, expert disclosures, motions, and trial preparation. Your agreement should state exactly which event moves the percentage.
New Jersey Fee Rules vs. Pennsylvania Practice
The two states handle contingency fees differently, and Freundlich & Littman, LLC serves clients in both.
New Jersey Court Rule 1:21-7 caps contingency fees in tort cases on a sliding scale:
- 33⅓% on the first $750,000 recovered
- 30% on the next $750,000
- 25% on the next $750,000
- 20% on the next $750,000
- Reasonable fees on amounts above $3 million, subject to court approval
The New Jersey rule calculates the percentage on the net recovery after costs. It also requires court approval of fees in cases involving minors or incapacitated persons.
Pennsylvania does not set a statewide percentage cap for private injury cases. Fees are governed by the Rules of Professional Conduct, which require them to be reasonable and require contingency agreements to be in writing. Courts review fees in minors' compromises and wrongful death or survival settlements. The market standard of 33⅓% to 40% applies in practice.
Case Costs Are Separate From Attorney Fees
Attorney fees and case costs are two different charges. Costs are the out-of-pocket expenses of building your claim. Ask whether the firm advances them and how they are repaid.
Common costs include:
- Court filing fees and service of process
- Medical records and police report fees
- Expert witnesses such as accident reconstructionists, physicians, or economists
- Deposition transcripts and court reporters
- Mediation fees
- Investigators and demonstrative exhibits for trial
Costs in a simple claim can be modest. Costs in a case needing several medical experts can reach tens of thousands of dollars. The agreement should say whether you owe costs if the case is lost. Some firms absorb them. Others recover them only from a settlement or verdict. Get this in writing before you sign.
A Worked Example: What You Keep
Assume a $90,000 settlement before suit is filed, a 33⅓% fee, and $6,000 in case costs.
- Fee on gross recovery: $30,000. Costs of $6,000 follow. You receive $54,000 before liens.
- Fee on net recovery: $90,000 minus $6,000 costs is $84,000. The fee is $28,000. You receive $56,000 before liens.
The $2,000 gap comes entirely from the agreement language. Liens then reduce your share further. Health insurers, Medicare, Medicaid, and workers' compensation carriers can claim reimbursement from your settlement. Ask how the firm handles lien negotiation, because a reduced lien can be worth as much to you as a lower fee.
Contingency vs. Hourly Billing: 5 Differences
| Factor | Contingency Fee | Hourly Fee |
|---|---|---|
| Upfront payment | None | Retainer usually required |
| Payment trigger | Only if you recover | Billed monthly regardless of outcome |
| Cost predictability | Percentage known in advance | Total unknown until case ends |
| Risk borne by | The attorney | The client |
| Typical use | Accident and injury claims | Business disputes, defense work |
Contingency suits injury claims because injured people often cannot fund litigation while they are out of work and paying medical bills. Business clients with commercial disputes frequently use hourly or hybrid arrangements instead.
How Freundlich & Littman, LLC Fits This Question
Freundlich & Littman, LLC handles personal injury claims across the Philadelphia metro, Bucks, Montgomery, Delaware, and Chester Counties, and South and Central Jersey. For injury cases the fee structure is the contingency model described above, so the firm's fee depends on the result it obtains for you. Specific percentages and cost terms are set out in a written agreement for your case, and you should compare that document against the points in this article.
What to Check Before You Sign a Fee Agreement
Use this checklist on any agreement, from any firm:
- Percentage and trigger: What is the rate, and what event raises it?
- Gross or net: Is the fee computed before or after costs?
- Cost responsibility: Who advances costs, and do you repay them if you lose?
- Lien handling: Who negotiates medical liens, and is there an extra charge?
- Settlement authority: You decide whether to accept an offer. The agreement should say so.
- Termination terms: What does the firm claim if you change attorneys midway?
Deadlines also affect cost. Pennsylvania and New Jersey both generally allow two years to file a personal injury suit, and claims against government entities carry much shorter notice periods. Waiting reduces evidence quality and can eliminate your claim.
Personal Injury Attorney Cost FAQ
Do I pay anything upfront to hire a personal injury attorney?
No. Personal injury cases are handled on contingency, so no retainer or hourly payment is due. Fees are paid from the settlement or verdict.
What percentage do personal injury lawyers take?
The standard is 33⅓% for cases that settle before a lawsuit and 40% if the case goes to trial. New Jersey caps the percentage on a sliding scale under Court Rule 1:21-7.
Do I owe the attorney if I lose my case?
You owe no attorney fee. Whether you owe case costs depends on your agreement, so confirm that term in writing before signing.
Are medical bills paid before or after attorney fees?
Fees and costs are typically deducted first, then liens and medical bills are paid from the remainder. Negotiating liens down increases your net recovery.
Can I negotiate the fee?
Yes, in many cases. Fee percentages, gross versus net calculation, and cost terms can differ between agreements. Ask about each term before you sign.
Disclaimer: For informational purposes only; does not constitute legal advice. Always consult a licensed attorney regarding specific claims.
