Contingency Fee Means No Attorney Fee, Not Necessarily No Case Costs
Yes, potentially. A contingency fee means your lawyer collects no attorney fee unless you recover money, but case costs, crash reports, medical records, expert witnesses, court filing fees, are a separate category entirely. Whether you owe those costs if the case loses, and when they are deducted from your settlement, depends entirely on the specific language in your written fee agreement.
Yes, potentially. A contingency fee means your lawyer collects no attorney fee unless you recover money, but case costs, crash reports, medical records, expert witnesses, court filing fees, are a separate category entirely. Whether you owe those costs if the case loses, and when they are deducted from your settlement, depends entirely on the specific language in your written fee agreement.
What is the difference between attorney fees and case costs?
Attorney fees and case costs are two legally distinct categories under Florida Bar Rule 4-1.5. The myth that “contingency fee means you pay nothing unless you win” is misleading because it conflates these two buckets. Fees are what the law firm earns for its legal work, typically a percentage of your recovery. Costs are real money paid to third parties to build your case. They are not part of the lawyer’s compensation. Below is a plain comparison:
| ATTORNEY FEE | CASE COSTS | |
|---|---|---|
| What it pays for | Legal representation: investigation, negotiation, court appearances | Out-of-pocket expenses: crash reports, medical records, experts, filing fees |
| Who receives it | The law firm | Courts, hospitals, court reporters, expert witnesses, process servers |
| How it is calculated | A percentage (often 33⅓% before an answer is filed) of the gross or net recovery | Actual dollars spent; tracked as a running tab |
| Owed if you lose? | No, by definition of contingency | Depends on your written fee agreement |
The old “one-third to the lawyer, one-third to bills, one-third you keep” idea is not a rule, it never was.
What case costs are typical in a Hialeah pedestrian accident?
Case costs vary by complexity, but here are common expenses in pedestrian crashes around Hialeah. This list is not exhaustive, and costs can run into thousands of dollars for cases that go to litigation.
- Hialeah Police crash report: Required early; under FS 316.066, it is confidential for 60 days, so only parties, their insurers, and their lawyers can obtain it during that window.
- Surveillance video from businesses on W 49th St and Okeechobee Road: Footage is often overwritten within days or weeks, prompt preservation requests are essential.
- Hospital records: From Hialeah Hospital, Palmetto General, or other treating facilities.
- Expert witnesses: Including treating doctors, accident reconstructionists, or life-care planners in serious injury cases.
- Deposition transcripts and court reporter fees: Needed when witness testimony is taken before trial.
- Court filing fees: Paid to the court to start a lawsuit in Miami-Dade.
- Process server fees: To formally deliver legal documents to the at-fault party.
These costs are necessary to prove fault, document injuries, and meet Florida’s evidence standards, especially in pedestrian accident claims.
Who pays those costs while the case is going on?
Wolfson & Leon advances all case costs on your behalf. You pay nothing out of pocket as the case moves forward. “Advancing” means the firm pays the vendors directly, courts, hospitals, experts, and expects reimbursement later from any settlement or verdict. This is common among Florida personal injury firms and ensures your financial situation does not limit how thoroughly your case is prepared. However, advancing costs is not the same as forgiving them. Whether you must repay those costs if there is no recovery depends solely on your signed fee agreement, not on general promises.
Does the order costs and fees are deducted change how much I take home?
Yes. The sequence matters. Florida Bar Rule 4-1.5 requires your fee agreement to specify whether attorney fees are calculated before or after case costs are deducted. Here is how it works with a $100,000 settlement, a 33⅓% fee, and $5,000 in costs:
| Scenario | Calculation | Net Before Medical Liens |
|---|---|---|
| A: Fee first, then costs | $100,000 × 33.33% = $33,333 fee → $100,000, $33,333, $5,000 = | $61,667 |
| B: Costs first, then fee | $100,000, $5,000 = $95,000 → $95,000 × 33.33% = $31,667 fee → | $63,333 |
The difference is $1,667 in this example. The full settlement waterfall is: gross recovery → attorney fee → case costs → medical liens (if any) → your net amount. Medical liens, what hospitals or health insurers are owed, may need to be satisfied separately and can further reduce your take-home amount.
What happens to the costs I owe if there is no recovery?
This is the question many injured pedestrians fear but hesitate to ask: “If I get nothing, do I still owe money?” The answer is not found in law, it is in your signed fee agreement. Some agreements state you must repay all advanced costs even if the case loses. Others forgive those costs entirely if there is no recovery. There is no automatic Florida rule that waives costs in lost cases. At Wolfson & Leon, our policy on cost repayment in zero-recovery cases is stated clearly in the written agreement you sign. Do not assume, read it. Ask directly: “What happens to case costs if we recover nothing?” Get the answer in writing before signing.
Six lines to find and read in your fee agreement before you sign
Before you sign any contingency agreement, locate these six provisions:
- Contingency percentages: Confirm the fee does not exceed the Florida Bar Rule 4-1.5(f)(4)(B) caps: 33⅓% of any recovery up to $1 million before an answer is filed or arbitration is demanded, and 40% after that through trial.
- Definition of case costs: Ensure it lists crash reports, medical records, expert fees, filing fees, and deposition costs.
- Deduction order: Find the sentence stating whether costs are subtracted before or after the attorney fee is calculated.
- Cost liability on no recovery: Look for explicit language on whether you owe advanced costs if there is zero recovery.
- Medical lien clause: Understand that hospital bills, insurer reimbursements, Medicare, or Medicaid may be paid from your settlement before you receive funds.
- Cancellation rights: Verify the agreement acknowledges your right to discharge the attorney at any time, though a fee may still apply.
If any of these items is missing or unclear, ask for written clarification before you sign.
Frequently asked questions
If I get nothing in my pedestrian accident case, do I owe Wolfson & Leon anything?
It depends on your signed fee agreement. Some contracts require repayment of advanced costs even with no recovery; others do not. The agreement you sign controls this, not general statements.
What is a medical lien and will it come out of my settlement?
A medical lien is a legal claim by a hospital, health insurer, Medicare, or Medicaid for payment from your recovery. Yes, valid liens are typically paid from your settlement before you receive your net proceeds.
Why does it matter whether case costs are deducted before or after the attorney fee is calculated?
Because it changes your take-home amount. Deducting costs first results in a lower base for calculating the attorney fee, which leaves you with more money, as shown in the $100,000 example.
How quickly do I need to act to preserve evidence like surveillance video from businesses on W 49th St or Okeechobee Road in Hialeah?
Immediately. Many businesses keep footage only for a limited time before overwriting it, so preservation letters should go out as soon as possible.
Does ‘no upfront costs’ mean the same thing as ‘no costs at all’?
No. “No upfront costs” means you do not pay out of pocket during the case. It does not mean costs are forgiven if you lose, they may still be owed depending on your agreement.
Related reading: How long does a personal injury case take in Miami-Dade? · The 14-day PIP rule in Florida: what happens if you wait to see a doctor after a Hialeah car accident · How long do I have to file an injury lawsuit in Florida? The two-year rule after HB 837
Hurt in an accident in Hialeah? Call Wolfson & Leon at 305-965-3766 for a free consultation. We speak Spanish, and there is no fee unless we win.
Key facts
- Attorney fees and case costs are two legally distinct categories; 'no fee unless you win' does not automatically mean 'no costs unless you win.' Source: Florida Bar Rule 4-1.5
- Florida Bar Rule 4-1.5 requires every contingency fee agreement to be in writing and signed by the client, and it must address how costs are handled. Source: Florida Bar Rule 4-1.5
- The order in which costs and fees are deducted from a settlement changes the net amount the client takes home: deducting costs before calculating the attorney's percentage produces a slightly larger net to the client than deducting costs after. Source: Florida Bar Rule 4-1.5
- Medical liens, amounts owed to hospitals, health insurers, Medicare, or Medicaid, can also reduce a client's net settlement and may need to be resolved separately from attorney fees and case costs. Source: 42 U.S.C. § 1395y(b) (Medicare); Fla. Stat. § 409.910 (Medicaid)
- Wolfson & Leon advances case costs on behalf of the client during the case; the client does not pay them out of pocket as the case proceeds. Source: Florida Bar Rule 4-1.8(e)
Frequently asked questions
If I get nothing in my pedestrian accident case, do I owe Wolfson & Leon anything?
You will owe no attorney fee, that is what 'contingency' means. Whether you owe reimbursement of advanced case costs depends on the specific language in your written fee agreement. Some agreements forgive those costs entirely if there is no recovery; others require repayment. Read that provision carefully and ask your attorney to explain it before you sign.
What is a medical lien and will it come out of my settlement?
A medical lien is a legal claim by a hospital, health insurer, Medicare, or Medicaid against your settlement proceeds as repayment for treatment they provided or covered after your crash. Ask your attorney how this works in your case. In practice, lien amounts are deducted from your settlement before you receive your net proceeds, and an attorney may be able to negotiate those liens down.
Why does it matter whether case costs are deducted before or after the attorney fee is calculated?
The math changes your take-home pay. If the attorney's percentage is calculated on the gross settlement before costs are subtracted, the fee is larger and your net is smaller. If costs are subtracted first and the percentage is applied to the reduced number, your net is slightly larger. On a $100,000 settlement with $5,000 in costs and a 33⅓% fee, the difference is roughly $1,667. Your written fee agreement controls which method applies.
How quickly do I need to act to preserve evidence like surveillance video from businesses on W 49th St or Okeechobee Road in Hialeah?
Immediately. Surveillance systems at retail plazas and commercial properties typically overwrite footage within days to weeks. Once it is gone, it cannot be recovered. Wolfson & Leon can send preservation letters quickly to try to secure that footage before it is lost. The Hialeah Police crash report is also important to obtain early; under Florida law it is confidential for 60 days except to the parties, their insurers, and their lawyers, so your attorney can access it right away.
Does 'no upfront costs' mean the same thing as 'no costs at all'?
'No upfront costs' means you pay nothing out of pocket while the case is active, the firm advances expenses as they arise. It does not automatically mean those costs disappear. Many Florida personal injury firms, including Wolfson & Leon, advance costs on the client's behalf and recover them from the settlement. Whether they are forgiven entirely if the case produces no recovery is a separate question answered only by your specific written agreement.
This article is general information about Florida law, not legal advice, and reading it does not create an attorney-client relationship. Every case is different and past results do not guarantee a similar outcome. For advice about your situation, call Wolfson & Leon at 305-965-3766 for a free consultation.
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