Understanding Contingency Fees
Here’s the simple version. You won’t pay your personal injury attorney anything upfront. No retainer. No hourly billing. No monthly invoices coming to your door. A personal injury lawyer only gets paid if you do. That’s called a contingency fee.
What does “contingency” mean? It means the lawyer’s fee depends on getting you money. If there’s nothing to recover, there’s nothing to pay. That’s the whole idea.
What to Expect
When you agree to work with a personal injury lawyer on a contingency basis, you sign a contract that lays out exactly what percentage of your compensation the attorney will take — whether that comes from a settlement or a jury verdict. Colorado personal injury legal representation typically runs from 33% to 40% of the total recovery under these agreements. The exact number can vary depending on when the case resolves and how much work it takes.
Here’s a real example. You’re in a car accident near the Denver Tech Center. You hire a lawyer. The case settles for $300,000 and your agreement says 33% — one third. The attorney takes $100,000. If the case goes to trial instead, the percentage might increase to 40%. Trial work is more complicated. It takes more hours, more investigation, and carries higher risk.
The Difference Between Fees and Costs
There’s an important difference between attorney fees and case costs that trips people up. The fee is the percentage your lawyer takes from your recovery. Costs are the separate expenses your lawyer spends to actually build and run your case — filing fees, depositions, medical record requests, expert witnesses, and so on. Both the fee and the costs come out of your final compensation.
Most attorneys pay those costs upfront during the case. You won’t be writing checks along the way. But they do come out at the end, so your contract should spell out exactly how it works. Read it carefully and ask questions. A good attorney will walk you through it — it’s one of the most common things new clients ask about.
Why Contingency Fees Exist
Contingency fees exist because most injury clients don’t have the money to pay hourly attorney rates while they’re recovering from injuries and dealing with medical bills. Contingency removes that barrier. It also lines up your attorney’s interests directly with yours — the more money your lawyer gets you, the more they make.
Here’s something insurance companies and employers hope you never figure out. A contingency lawyer always works to get you the most compensation possible. Some high-volume settlement mills take the fastest deal they can get. A litigation firm won’t do that. The percentage stays the same whether the case settles for $100,000 or goes to trial and returns $300,000 — but the recovery is very different. I’ve seen this play out over and over. Two people with the same injury, two different attorneys, and the compensation differs by three times. One case settles early. One goes to trial. The contingency fee percentage is the same — but the payout is not.
Why the Fee Percentage Can Change at Trial
Most contingency agreements include different percentages depending on when the case resolves. The further along a case gets, the more work it involves — and the higher the fee.
Here’s how the stages typically break down:
Pre-litigation settlement — the attorney negotiates directly with the insurance company without filing a lawsuit. This stage carries the lowest percentage.
Pre-trial settlement — a lawsuit is filed, and the case moves through motion practice and court appearances before settling. The fee increases here.
Trial — the case goes before a judge or jury. This stage carries the highest percentage because trials involve depositions, expert witnesses, jury selection, full courtroom preparation, and multiple days in court.
Appeals — some agreements include an appeal clause with an even higher percentage to cover the additional legal work an appeal requires. If your agreement doesn’t mention appeals, ask before you sign.
The fee percentage is not a penalty. It reflects the level of work and risk your attorney is taking on at each stage.
A Note on Higher Settlements at Trial
Here’s what most people don’t realize. Even though the trial fee percentage is higher, your overall take-home amount can still be larger. Insurance companies are counting on you not knowing this.
Adjusters offer the lowest number they think you’ll accept — especially when they believe you won’t actually go to court. The moment they find out your lawyer tries cases, that conversation changes. I’ve seen this play out in hundreds of cases in Arapahoe County, which covers most of Greenwood Village.
Under Colorado’s modified comparative negligence law under C.R.S. § 13-21-111, adjusters will also try to say you were partially at fault to reduce their offer — claiming you were on your phone, didn’t slow down, or weren’t wearing a seatbelt. A lawyer with a real trial record knows how to challenge every one of those arguments in front of a jury. A lawyer with no trial experience? The insurance company already knows that — and adjusts their offer accordingly.
Think of it this way. A larger percentage of a much larger number still puts more money in your pocket than a smaller percentage of a lowball settlement.
Questions to Ask Before You Hire Anyone
Before you sign anything with a personal injury lawyer, ask these specific questions. What is the contingency fee percentage if we settle before filing a lawsuit? If we file? If we go to trial? The clarity of their answers tells you a lot about the firm.
Also ask how many cases they’ve actually taken to trial. Some firms call themselves “trial ready” but settle every single case without ever seeing a courtroom. That reputation follows them into every negotiation — and insurance adjusters know it.
For a free legal consultation, call (303) 465-8733
Case Costs and Fees
The fee percentage your lawyer charges is not the only thing that comes out of your recovery. Case costs are separate — and they can add up fast, especially in serious injury cases. Here’s what that looks like in practice.
Think of it this way. The contingency fee is what your lawyer earns for representing you. Case costs are what it actually cost to build your case and get that result in the first place. Both come out of your final recovery check.
What Case Costs Actually Include
Medical records. Every time you visit a doctor, clinic, or hospital, they generate a bill and a record. Getting those records costs money. In even a straightforward car accident case with multiple providers, records fees alone can run several hundred dollars.
Expert witnesses. Depending on the complexity of your injury or the facts of the crash, you may need a medical expert, an accident reconstructionist, or both. A traumatic brain injury case or a truck accident involving a mechanical failure almost always requires at least one expert. They bill for every hour they spend on your case. In a complex lawsuit, expert fees can easily reach into the thousands.
Court filing fees. When a lawsuit is filed in Arapahoe County District Court, there are fees for filing, service of process, and depositions. A single deposition transcript can cost several hundred dollars.
Investigation costs. Scene photos, police reports, preserving surveillance footage — all of it costs real money and adds up over time.
How Case Costs Are Paid
Most firms advance these costs during the case. You don’t pay them out of pocket while the case is going on. They get deducted at the end when your settlement or verdict comes in.
Your final take-home equals your total recovery, minus case costs, minus your lawyer’s contingency fee, minus any medical liens from providers who treated you in exchange for a lien on your recovery.
We’ve seen clients walk in expecting to keep 67 cents of every dollar because their attorney charges 33%. Then they discover that a $4,000 expert witness fee, $1,200 in medical records, and a $15,000 medical lien all come out of that same pool. The 67 cents shrinks fast.
This is exactly why asking about case costs during your free consultation matters just as much as asking about the fee percentage. The fee alone is not the full picture.
A straightforward slip-and-fall near the Denver Tech Center might not carry high investigation or expert costs. But a motorcycle crash on I-25 involving three vehicles could easily require tens of thousands in expert witnesses to build a winning case. And here’s what insurance companies hope you don’t learn — the more your lawyer invests in building a quality case, the higher the final settlement offer tends to be. Skimping on an accident reconstructionist to save money upfront will cost you far more in the form of a low offer later.
Before you sign any agreement, ask three questions. What is the contingency fee percentage? Who pays case costs if we lose? And will you negotiate medical liens to put more money in my pocket? Those three answers will tell you almost everything you need to know about a firm.
Our Greenwood Village, Colorado Office Location
Our main office is located in Greenwood Village, also known as the Denver Tech Center, just south of Downtown Denver.
Jordan Law Accident and Injury Lawyers
5445 DTC Parkway Suite 1000 Greenwood Village CO 80111
Frequently Asked Questions
Do I have to pay my lawyer if my case doesn’t win anything?
No. You do not pay attorney fees if you don’t recover money. That’s the whole point of a contingency fee agreement. Your lawyer only gets paid a percentage when you get paid. If there’s no settlement or verdict, there’s no fee owed for the attorney’s time. This protects you from added financial stress while you heal — and it pushes your lawyer to work hard for your outcome.
What is the difference between attorney fees and case costs?
Attorney fees are the percentage your lawyer earns from your settlement or verdict. Costs are separate expenses like filing fees, expert witness charges, and medical record requests. Most Greenwood Village personal injury attorneys pay these costs upfront during your case, and both the fee and the costs come out of your final compensation. Your contract should spell out exactly how this works — ask questions before you sign anything.
Why does my contingency fee percentage go up if my case goes to trial?
Your fee percentage rises at trial because trial work takes far more time and resources. A pre-lawsuit settlement involves much less work than a courtroom trial. Trials require depositions, expert witnesses, jury selection, and days in court. This added effort is why most agreements include a higher trial rate. Understanding these fee stages upfront helps you avoid surprises later.
Does going to trial actually get injured people more money?
Yes — trial cases often lead to higher compensation, even with a higher fee percentage. Insurance adjusters in Arapahoe County tend to offer lower amounts to people they believe won’t take their case to court. Once they learn your attorney is willing and ready to try the case, offers can change very quickly. This is why choosing a firm that actually goes to trial matters — not just one that settles fast.
How does Colorado’s comparative negligence law affect my compensation?
Colorado’s modified comparative negligence law can reduce your payout if you share some blame for the accident. Under C.R.S. § 13-21-111, your compensation gets reduced by your percentage of fault. If you’re found more than 50% at fault, you may not recover anything at all. This makes it worth understanding how contingency fees and fault percentages work together before your case moves forward.
Should I worry about an appeal clause in my fee agreement?
Yes — always check for an appeal clause before signing a contingency agreement. Some contracts include a higher fee percentage if your case gets appealed after trial, to cover the extra legal work an appeal requires. If your agreement doesn’t mention appeals at all, ask your attorney directly before you sign. A clear answer now saves a lot of confusion if your case takes an unexpected turn.
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