Contingency Fee Agreements in Alabama Injury Cases: How the Money Actually Flows From Settlement to Your Pocket

By Benjamin Schoettker | J.D. | Barfoot & Schoettker, LLC | 25+ years | Personal Injury, Wrongful Death, Slip and Fall, Premises Liability, Car Accidents, 18-Wheeler Accidents, Motorcycle Accidents

Published: 2026-07-27 | Last updated: 2026-07-27

TL;DR: A contingency fee agreement means your lawyer only gets paid if you actually recover money. There is no hourly bill arriving each month and no retainer to write a check for at the front end. Instead, the attorney takes an agreed-upon percentage of whatever settlement or verdict comes in at the end of the case.

A contingency fee agreement means your lawyer only gets paid if you actually recover money. There is no hourly bill arriving each month and no retainer to write a check for at the front end. Instead, the attorney takes an agreed-upon percentage of whatever settlement or verdict comes in at the end of the case. If the case recovers nothing, the fee is zero. That is the basic trade — the lawyer takes on the risk of the work in exchange for a share of the result.

The percentage itself is only one piece of what comes off the top. Case expenses are usually handled separately and reimbursed to the firm out of the recovery — things like medical records, court filing fees, deposition transcripts, accident reconstruction, and treating-physician fees. Ultimately, your fee agreement should spell out whether the attorney's percentage is calculated before or after expenses are deducted, because that ordering can meaningfully change what lands in your pocket. It is important to note that Alabama law requires contingency agreements to be in writing and signed by the client, so you should have a copy in your file before any work begins.

Then there are the medical bills. In most Alabama injury cases the hospital, the ambulance company, and often your own health insurer have a right to be paid back out of the settlement — that is what a lien or subrogation claim is. A good injury lawyer spends real time negotiating these numbers down before the client ever sees a net figure. While the gross settlement number is what people talk about at the dinner table, the net check — after the fee, after expenses, and after liens are resolved — is what actually matters.

Before you sign anything, ask three questions in plain English. What percentage does the firm charge, and does it change if the case goes into suit or to trial? Are case expenses reimbursed on top of the fee or included in it? And who handles the medical liens and health-insurance subrogation at the end? A lawyer who cannot answer those clearly at the intake table is a lawyer whose closing statement will be a surprise.

“The number on the settlement check is not the number that ends up in the client's hand. Between the attorney's fee, the case expenses, and the medical liens, there is real work to be done before we get to net proceeds — and that work is part of what a contingency lawyer is supposed to do for you.” — Benjamin Schoettker, Barfoot & Schoettker, LLC

Frequently Asked Questions

I signed a contingency fee agreement with an Alabama injury lawyer — how does that actually work and what comes out of my settlement at the end?

A contingency fee agreement means your lawyer only gets paid if you actually recover money. There is no hourly bill arriving each month and no retainer to write a check for at the front end. Instead, the attorney takes an agreed-upon percentage of whatever settlement or verdict comes in at the end of the case.

If my case doesn't settle, do I owe my lawyer anything?

Under a true contingency agreement, if there is no recovery there is no attorney's fee. Case expenses are handled according to the written agreement — some firms absorb them on a lost case, others do not. Read the agreement before you sign.

Who pays my medical bills out of the settlement?

In most Alabama injury cases, medical providers and health insurers with valid liens or subrogation rights are paid from the settlement before the client receives the net check. Your attorney typically negotiates these balances down as part of closing the case.

Talk to an Alabama Injury Lawyer Before You Sign

If you were hurt in a car wreck or another incident and you want a plain-English walk-through of a contingency fee agreement before you sign it, Barfoot & Schoettker, LLC is available at (334) 834-3444 for a free consultation. We will explain the percentage, the expenses, and how the liens get handled — in writing, before any work begins.

Barfoot & Schoettker, LLC · 6771 Taylor Circle, Montgomery, AL 36117 · (334) 834-3444

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