How the contingency fee works
A contingency fee is a fee the lawyer earns only if the case produces a recovery. Michigan Court Rule 8.121 governs contingency fees in personal injury and wrongful death cases and caps the fee at one-third (33 1/3%) of the amount recovered — measured after case costs are subtracted.
A simple example
- Settlement: $150,000
- Case costs advanced by firm: −$6,000
- Net recovery: $144,000
- Attorney fee (1/3 of net): $48,000
- To client: $96,000 (before medical liens)
The written contingency fee agreement must spell out the percentage, how costs are handled, and how liens are paid. You will always see the math on paper before you sign anything.
Attorney fees on PIP no-fault claims
First-party PIP cases work differently. MCL 500.3148(1) allows an injured person's attorney to collect a reasonable fee from the insurer — not from the client — when overdue no-fault benefits result from the insurer's unreasonable refusal to pay or unreasonable delay.
When we sue a no-fault carrier that has cut off wage loss, denied medical bills, or slow-walked attendant care, our fee comes out of the insurance company's pocket on top of everything they owe you. Your benefits are not reduced by our fee.
What are "case costs"?
Case costs are the out-of-pocket expenses required to build and litigate your claim. They are separate from the attorney fee. Common costs include:
- Medical records and imaging. Providers charge per page and per study.
- Court filing fees. Circuit court filing fees, motion fees, and service costs.
- Expert witnesses. Treating physicians, life-care planners, biomechanical engineers, and accident reconstructionists.
- Deposition transcripts. Court reporters charge per page for testimony transcripts.
- Investigation. Crash-scene photos, black-box downloads, drone footage, witness locates.
Jay Trucks & Associates advances every case cost. You are only responsible for reimbursing them from the settlement or verdict, and only if there is a recovery.
Medical liens and reductions
After the attorney fee and case costs, some of the recovery may go to satisfy medical liens — Medicare, Medicaid, ERISA plans, and hospitals that treated you. A significant part of our job is negotiating those liens down so more of the recovery ends up in your pocket. Michigan law and federal ERISA rules both give experienced counsel meaningful leverage in lien reduction.
Why "cheaper" lawyers can cost you more
The 1/3 fee is a ceiling, not a floor. Some firms advertise reduced fees, but the price you actually pay is measured by the size of the settlement, not the size of the fee . A firm that rushes to settle at 25% of what your case is worth is vastly more expensive than a firm that takes 1/3 of a fair result. Ask a lawyer:
- How many Michigan auto cases have you actually tried to verdict?
- What is your average PIP recovery per client?
- Who will actually work my file — the ad on TV, or an intake paralegal?
Get a real estimate — free
Call us and we'll walk through your crash, your policy, and the likely value of your PIP and third-party claims. We'll give you an honest read on what the case is worth and what a contingency fee will actually mean in your case.