How the contingency fee works
A contingency fee is a fee the lawyer earns only if the case produces a recovery. MCR 8.121 governs contingency fees in Michigan personal injury and wrongful death cases and caps the fee at one-third (33 1/3%) of the net recovery — the amount left after case costs are subtracted.
A simple example
- Settlement: $300,000
- Case costs advanced by firm: −$18,000
- Net recovery: $282,000
- Attorney fee (1/3 of net): $94,000
- To client: $188,000 (before medical liens)
The written contingency fee agreement spells 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 claims
First-party PIP cases work differently. MCL 500.3148(1) allows an injured motorcyclist'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 it owes the injured rider. PIP benefits are not reduced by our fee.
Case costs on a motorcycle case
Motorcycle crashes are often more expensive to work up than car cases because the mechanism of injury and the fault fight require more expert analysis. Typical case costs include:
- Crash-scene reconstruction. Photogrammetry, drone imagery, and accident reconstruction reports on line-of-sight, speed, and gap acceptance.
- Motorcycle inspection. Mechanical analysis of ABS, tires, and event data recorders on modern bikes.
- Medical records and imaging. Michigan providers charge under MCL 333.26265; MRIs, CTs, and operative reports on serious orthopedic injuries.
- Expert witnesses. Orthopedic and neurological experts, biomechanical engineers, life-care planners, and vocational economists.
- Court filing fees and depositions. Michigan circuit court filing fees, motion fees, and court reporter charges.
Jay Trucks & Associates advances every case cost. You are only responsible for reimbursing them from a recovery — if there is no recovery, we absorb the costs.
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, hospital liens under MCL 400.106, and workers' comp reimbursement rights. A significant part of our job is negotiating those liens down so more of the recovery ends up in the rider's pocket.
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. When you interview lawyers, ask:
- How many Michigan motorcycle cases have you actually tried to verdict?
- What is your typical recovery on a serious-injury motorcycle case?
- 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 the crash, every applicable 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 dollars.