One of the most common reasons injured people delay contacting a personal injury attorney — or never contact one at all — is the assumption that legal representation is expensive. They imagine hourly billing, large retainers, and bills that arrive before any money comes in.
In personal injury law, that’s not how it works.
Understanding the fee structure used by personal injury attorneys in Colorado and Nevada is important — both because it removes a barrier to getting help you may genuinely need, and because knowing the details protects you as a client.
1. The Contingency Fee: You Pay Nothing Unless You Win
Personal injury attorneys work on a contingency fee basis. This means:
- You pay no hourly fees
- You pay no upfront retainer
- You pay nothing out of pocket during the course of your case
- Your attorney is paid a percentage of your recovery — only if and when your case is successfully resolved through settlement or verdict
If your case does not result in a recovery, you owe your attorney nothing for their time.
This fee structure exists for an important reason: it makes experienced legal representation accessible to anyone who has been injured, regardless of their financial situation. You don’t need to be wealthy to hire a good personal injury attorney. You just need a valid claim.
2. What Percentage Does a Personal Injury Attorney Typically Charge?
Contingency fee percentages vary by firm, jurisdiction, and case complexity — but standard rates in Colorado and Nevada typically fall in the following ranges:
- Pre-litigation (settled before a lawsuit is filed): 33% to 35% of the gross recovery
- After a lawsuit is filed: 40% of the gross recovery
- If the case goes to trial: 40% to 45%, depending on the firm and circumstances
These percentages are negotiated between the attorney and the client before representation begins and are formalized in a written fee agreement. You have the right to review, understand, and ask questions about this agreement before signing.
3. Costs and Expenses: Understanding the Difference
There is an important distinction between legal fees and case costs and expenses — and confusing the two is a common source of misunderstanding.
Legal fees are the attorney’s compensation — the contingency percentage described above.
Case costs and expenses are the out-of-pocket expenditures required to investigate and litigate your case. These may include:
- Court filing fees
- Medical record and report procurement costs
- Expert witness fees (accident reconstructionists, medical experts, vocational experts)
- Deposition costs
- Investigator fees
- Postage, copying, and administrative costs
In most personal injury arrangements, the attorney advances these costs on your behalf throughout the case — meaning you still pay nothing out of pocket while the case is active. However, when the case resolves, these costs are typically reimbursed from the settlement or verdict proceeds, either before or after the contingency fee is calculated, depending on the agreement.
This is an important detail to clarify with your attorney before signing. Ask specifically:
- Are costs deducted before or after your fee is calculated?
- What is the estimated range of costs in a case like mine?
- What happens to costs if we do not recover?
Some firms absorb unreimbursed costs in unsuccessful cases; others do not. Know your agreement.
4. A Real-World Example
Suppose your case settles for $100,000, and your fee agreement specifies a 33% contingency fee with costs deducted from the gross recovery before the fee is calculated.
Here’s how the math works:
- Gross settlement: $100,000
- Case costs advanced by attorney: $5,000
- Net recovery after costs: $95,000
- Attorney’s fee (33% of net): $31,350
- Your take-home: $63,650
If the agreement specifies that the fee is calculated on the gross recovery before costs:
- Gross settlement: $100,000
- Attorney’s fee (33% of gross): $33,000
- Case costs: $5,000
- Your take-home: $62,000
The difference may seem small in this example, but in larger cases with higher costs, the calculation method can meaningfully affect your net recovery. Ask your attorney to walk you through this with actual numbers before you sign.
5. What About Medical Liens?
In many personal injury cases, medical providers — hospitals, surgery centers, physical therapists — will treat an injured person on a lien basis, meaning they agree to defer payment until the case resolves. When the case settles, the medical provider’s lien is paid from the settlement proceeds.
Similarly, if your health insurance paid for any treatment related to your injuries, your insurer may assert a subrogation interest — a right to be reimbursed from your settlement for the amounts they paid.
Your attorney will negotiate with lienholders and subrogation interests as part of the settlement process, working to reduce these obligations and maximize your net recovery.
6. Why Hiring an Attorney Is Almost Always Worth It
Studies consistently show that personal injury claimants who are represented by an attorney recover more, on average, than those who handle their claims alone — even after accounting for the contingency fee.
The reasons are practical:
- Attorneys know how to document and present claims in ways that maximize value
- Attorneys understand the insurance industry’s tactics and know how to counter them
- Attorneys who are prepared to litigate command higher settlement offers from insurers who want to avoid trial
- Attorneys negotiate medical liens and other obligations that reduce your net recovery
The contingency fee system aligns your attorney’s interests with yours: they only get paid when you win, and they get paid more when you win more.
7. What to Look for in a Fee Agreement
Before signing any retainer agreement with a personal injury attorney, make sure you understand:
- The contingency fee percentage at each stage of the case
- Whether costs are deducted before or after the fee is calculated
- Who is responsible for costs if the case is unsuccessful
- How medical liens and subrogation claims will be handled
- Who will be handling your case day-to-day
A reputable attorney will walk you through every line of the agreement and welcome your questions. If they won’t, that tells you something.
You Can Afford an Attorney. Here’s Why.
The contingency fee system was designed to give every injured person access to legal representation — not just those who can afford to pay by the hour. If you’ve been injured and you’re hesitating to call an attorney because you’re worried about cost, this is the answer: there is no cost to you unless your attorney wins.
The only question is whether you have a valid claim. And the only way to find out is to call.
Talk to Kim Welch Law Today
Free consultation. No obligation. No fees unless we win.
Colorado Springs and Las Vegas/Henderson, NV: (888) 590-5510 Website: www.kimwelchlaw.com
Kim Welch is a personal injury attorney serving clients in Colorado Springs, CO and Las Vegas and Henderson, NV. This blog post is for general informational purposes only and does not constitute legal advice. Contact our office for guidance specific to your situation.