Understanding Attorney Fees in PA & NJ Personal Injury Cases
At Cordisco & Saile LLC, we believe you shouldn’t have to guess how much a lawyer costs before you even walk in the door. This page breaks down exactly how our fees work — what a contingency fee is, why it changes if your case goes to litigation, how Pennsylvania and New Jersey handle fees differently, and what other costs might come out of a settlement.
What Is a Contingency Fee?
Instead of billing you by the hour or asking for a retainer, we agree in writing to take a set percentage of whatever we recover on your behalf. If there’s no recovery, there’s no attorney’s fee. This is the standard arrangement for personal injury cases nationwide, and it exists so that injured people can afford representation without taking on financial risk while they’re already dealing with medical bills, lost income, and recovery.
What Is a Contingency Fee?
A percentage fee is the mechanism behind the contingency arrangement: the fee isn’t a fixed dollar amount decided in advance — it’s calculated as a share of your total recovery once your case resolves. If you recover more, the fee is a larger dollar figure; if you recover less, it’s smaller. But the percentage itself is agreed to before your case begins, in a written fee agreement, so there are no surprises about the rate.
Why the Fee Is Different Before Litigation vs. During Litigation
Why the Fee Is Different Before Litigation vs. During Litigation
Most firms, including ours, charge a lower percentage if your case settles before a lawsuit is filed, and a higher percentage once litigation begins.
Here’s why: filing a lawsuit means significantly more work. It involves formal discovery, depositions, expert witnesses, court filings, and the possibility of trial. That additional time, cost, and risk to the firm is reflected in a higher contingency percentage once a case moves into active litigation, compared to a case that resolves through negotiation with an insurance company beforehand.
A typical structure looks like:
- A lower percentage if the case is resolved without filing a lawsuit (less legal work)
- A higher percentage if the case enters litigation (more legal work)
This tiered approach means you’re never charged litigation-level fees for a case that never required litigation. If the case settles quickly and easily, you pay a lower percentage legal fee.
Why the Fee Is Different Before Litigation vs. During Litigation
Fee structures aren’t identical from state to state, because each state’s rules of professional conduct set different boundaries for what lawyers can charge.
Pennsylvania
Pennsylvania does not impose a statutory cap on contingency fees in most personal injury cases. Instead, fee agreements must simply be reasonable and in writing under the Pennsylvania Rules of Professional Conduct. This gives firms some flexibility to structure tiered fees, such as a set percentage before litigation and a higher percentage once a lawsuit is filed, as long as the agreement is clear and the client consents in writing.
In practice, most Pennsylvania personal injury firms charge somewhere in the 35% to 40% range, with the exact percentage depending on the firm and where a given case falls in that pre-litigation/litigation tier structure. A case resolved through negotiation before a lawsuit is filed typically sits at the lower end of that range, while a case that proceeds into active litigation typically sits at the higher end.
The Takeaway: If you’re injured in Pennsylvania, your fee agreement will typically follow a pre-litigation/litigation tier structure.
New Jersey
New Jersey takes a more prescriptive approach. Under New Jersey Court Rule 1:21-7, contingency fees in personal injury cases are capped on a sliding scale based on the size of the recovery:
- 33⅓% on the first $750,000 of net recovery
- 30% on the next $750,000
- 25% on the next $750,000
- 20% on the next $750,000
- A “reasonable fee” (generally under 20%) on anything above $1.5 million, subject to court approval
In practice, this means the larger your recovery in New Jersey, the smaller the percentage the attorney can take on the upper portion. The cap decreases as the recovery grows, and very large recoveries require court sign-off on the fee.
The Takeaway: If your case falls under New Jersey’s rules, the percentage may decrease as your recovery increases, regardless of litigation status.
Appeals are a different phase of work.
An appeal in a personal injury case is when the losing party asks a higher court to review whether the trial court made a legal error, and asks it to reverse, modify, or send back the judgment or verdict as a result.
Trial-level contingency agreements are usually written around getting a verdict or settlement, not around defending or pursuing an appeal, which can mean months of additional briefing, oral argument prep, and transcript costs. These costs are typically not associated with the fee.
How Fees Work Differently for Minors
When the injured person is a minor (under 18 at time of representation), courts require extra oversight to make sure the fee arrangement is fair, since a minor can’t independently consent to a legal agreement.
Because of that added scrutiny, and because minors’ settlements typically require court approval before funds are released, many firms, including ours, charge a reduced contingency percentage in minors’ cases, typically around 25%. This reflects both the added protections built into the process and the court’s role in reviewing the fee before it’s approved.
Other Costs That May Come Out of a Settlement
A contingency fee covers the attorney’s fee itself, but it’s not the only line item that may be deducted from a settlement. Separately from the fee, case costs are typically repaid from the recovery once the fee is calculated. These can include things like:
Every firm handles these differently: some roll certain costs into the fee, others itemize them separately. This is exactly why it’s worth reading your fee agreement closely and asking your attorney to walk through each line before you sign. At our firm, all of this is spelled out in writing, and none of it is owed unless there’s a recovery.
Why You Don't Pay Upfront
This is the key takeaway. Because the fee only comes out of your recovery, you’re never asked to pay a retainer or hourly rate just to have your case reviewed or taken on. We advance the costs of investigating and building your case, and we’re repaid, along with our fee, only if and when your case resolves in your favor. If there’s no recovery, you don’t owe anything.
Frequently Asked Questions
Do I have to pay anything to get started?
No. Consultations are free, and there’s no upfront payment required to open a case.
What happens if I don't win my case?
If there’s no settlement or verdict, you owe no attorney’s fee and none of the case costs.
Is the percentage the same whether my case settles or goes to trial?
Not always. Many fee agreements set a lower percentage for cases resolved without litigation and a higher percentage once a lawsuit is filed, reflecting the added work involved.
Does the fee percentage change based on how much I recover?
It can, depending on the state. In New Jersey, the percentage decreases on larger portions of a recovery under a court-set sliding scale. In Pennsylvania, fees are typically structured around whether the case is in litigation rather than the size of the recovery, generally falling somewhere between 35% and 40%.
Are fees different if the injured person is a minor?
Yes, cases involving minors typically involve a reduced contingency percentage around 25%, along with court oversight to approve the settlement and fees.
What other costs might reduce my settlement besides the attorney's fee?
Case-related costs, like expert fees, record retrieval, court costs, a technology/file-security fee, or interest on advanced costs, are generally repaid from the recovery after the attorney’s fee is calculated.
This page is for general informational purposes and does not constitute legal advice. Fee arrangements vary by case and are governed by a written agreement between you and your attorney. Contact our office for a free consultation to discuss the specifics of your case.