When you are lying in a hospital bed or sitting at your kitchen table staring at a stack of medical bills, the last thing you want to worry about is another bill. The financial stress that follows a serious accident is suffocating. You may be unable to work, your car may be totaled, and your savings may be draining fast.
In this moment of vulnerability, many people in Scranton and across Northeast Pennsylvania hesitate to call an attorney. Why? Because they assume they cannot afford one. They imagine a lawyer with a running meter, charging hundreds of dollars an hour just to listen to their story.
At The Moran Law Group, we want to dispel this myth immediately. Access to justice should never depend on the size of your bank account.
The short answer to the question “Who pays legal fees in a personal injury claim?” is simple: You do not pay us a dime out of your own pocket. Instead, our fees are paid from the settlement or verdict we recover for you. If we don’t win your case, we don’t get paid.
This system is designed to protect you. But to truly feel comfortable moving forward, you need to understand exactly how it works, the difference between “fees” and “costs,” and what happens at the end of your case. Let’s break down the financials of a personal injury lawsuit so you can focus on what matters most: your recovery.
The Contingency Fee Model: The Key to Fair Representation
In corporate law or divorce law, attorneys typically charge an hourly retainer. You pay them up front, and they bill you for every phone call and email.
In personal injury law, we operate on a Contingency Fee basis. This means our fee is “contingent” upon—or dependent on—the successful outcome of your case.
Why This Model Exists
The contingency fee system is the great equalizer in the American justice system. Without it, only wealthy individuals could afford to sue massive insurance companies or negligent corporations. An injured construction worker or a mother hurt in a car crash would be powerless against a team of corporate defense lawyers.
By working on contingency, The Moran Law Group agrees to work for free for the duration of your case—whether that takes six months or three years. We invest our time, resources, and expertise with the understanding that we only get paid if we deliver results for you.
The Standard Percentage
So, who pays the fee? The money comes from the final settlement check issued by the insurance company.
Typically, the attorney’s fee is a percentage of the gross recovery. While percentages can vary based on the complexity of the case, the industry standard is usually:
- 33.3% (One-Third) if the case settles before a lawsuit is filed.
- 40% if the case requires filing a lawsuit or going to trial.
Example: If we negotiate a $100,000 settlement for you before filing a lawsuit, the attorney fee would be $33,333. The remaining $66,667 covers your medical liens, costs, and your net compensation.
This structure aligns our interests with yours. The more we recover for you, the more we earn. We are motivated to fight for every single dollar because your success is literally our success.
“Legal Fees” vs. “Case Costs”: Understanding the Difference
One of the most common misunderstandings in personal injury law is the difference between fees and costs. When you sign a representation agreement, it is vital to know the distinction, as they are handled differently at the conclusion of your claim.
Legal Fees
This is the payment for our labor and expertise. It covers the hundreds of hours we spend researching case law, negotiating with adjusters, writing briefs, and strategizing your argument. As explained above, this is the percentage taken from the final win.
Case Costs (Expenses)
“Costs” are the hard expenses required to move your case forward. Building a winning case isn’t free. To prove negligence and damages, we often have to pay third-party vendors.
Common case costs include:
- Filing Fees: Money paid to the court to file a complaint.
- Medical Records: Hospitals charge fees to print and mail your charts.
- Police Reports: Fees paid to the police department for official accident reports.
- Expert Witnesses: This is often the largest expense. If we need a neurosurgeon to testify about your brain injury or an accident reconstructionist to prove the other driver was speeding, these experts charge for their time.
- Deposition Costs: Paying court reporters to transcribe testimony.
Who Pays These Costs Up Front?
If you had to pay these costs as they arose, you might go bankrupt trying to prove your case. Expert witnesses alone can cost thousands of dollars.
At The Moran Law Group, we advance all case costs. We pay the filing fees, the experts, and the court reporters out of our own operating funds. You do not receive a bill for these during the case.
When the case settles, we are reimbursed for these specific costs from the settlement amount. This allows us to build a “gold standard” case for you without you ever having to open your wallet.
The “American Rule”: Does the Loser Pay?
Clients often ask us, “If the other driver caused the accident, shouldn’t they have to pay my legal fees on top of the settlement?”
This is a logical question. In many countries, the “loser pays” system applies. However, the United States follows the “American Rule.”
Under the American Rule, each party is responsible for their own attorney fees, regardless of who wins or loses the lawsuit.
- The defendant pays their own defense lawyer (usually hired by their insurance company).
- You pay your attorney from your settlement proceeds.
Are There Exceptions?
Exceptions are rare in standard personal injury cases. Courts generally only order the defendant to pay your legal fees separately if:
- Bad Faith: The insurance company acted egregiously or illegally during the handling of the claim.
- Specific Statutes: Certain civil rights violations or consumer protection laws include “fee-shifting” provisions, but these rarely apply to standard car accidents or slip and falls.
Because of the American Rule, it is our job to ensure your settlement is high enough to cover your medical bills, your pain and suffering, and the legal fees, leaving you with a secure financial future.
What Happens If We Don’t Win?
This is the fear that keeps many people up at night. What if we go through a two-year legal battle and lose? Will you be stuck with a bill for thousands of dollars in legal work?
No.
If The Moran Law Group accepts your case and we do not recover compensation for you:
- You owe zero legal fees. We do not charge you for our time.
- You typically owe zero case costs. In most instances, we absorb the loss of the money we spent on medical records and experts. We view this as our risk, not yours.
This promise is central to our philosophy. We are “Not Just a Client… You Are Family.” We would never add debt to a family member who is already suffering. This “no-fee” guarantee allows you to pursue justice with zero financial risk.
Is Hiring an Attorney Worth the Cost?
It is fair to ask: “If I have to give up 33% of my settlement, am I better off just handling it myself?”
Insurance adjusters will often tell you exactly that. They might say, “Why share your money with a lawyer? We can settle this right now just between us.”
Here is the reality they don’t want you to know: According to the Insurance Research Council, injured people who hire an attorney receive settlements that are, on average, 3.5 times higher than those who represent themselves.
Let’s look at the math:
- Scenario A (You settle alone): The insurer offers you $15,000. You keep 100%. Net to you: $15,000.
- Scenario B (With an attorney): We find additional insurance coverage, prove the full extent of your future damages, and negotiate a settlement of $60,000.
- Attorney Fee (33%): -$20,000
- Net to you: $40,000.
Even after paying the legal fee, you often end up with significantly more money in your pocket. Plus, you avoid the stress of fighting adjusters, managing paperwork, and fearing you missed a deadline.
The Hidden Battle: Medical Liens and Subrogation
There is another financial layer to “who gets paid” that experienced attorneys handle: Liens.
If your private health insurance (like Blue Cross or Aetna), Medicare, or Medicaid paid for your treatment after the accident, they have a legal right to be paid back from your settlement. This is called “subrogation.”
If you handle a case yourself, the insurance company will demand 100% repayment. They can sometimes take so much of your settlement that you are left with nothing.
This is where The Moran Law Group provides immense value. We don’t just fight the defendant; we negotiate with the lienholders.
- We review the lien to ensure it only includes accident-related treatment.
- We argue that they should reduce their lien amount since they didn’t have to pay legal fees to recover the money.
We frequently get these liens reduced by 30%, 40%, or even 50%. Every dollar we save on a lien is a dollar that goes directly to you.
Reviewing Your Fee Agreement
Transparency is the foundation of trust. When you hire The Moran Law Group, we will walk you through a written Fee Agreement before you sign anything.
This document will clearly state:
- The contingency percentage.
- How costs are handled.
- That no fee is owed if no recovery is made.
If you ever speak to a lawyer who is vague about their fees, or who asks for a “retainer” check up front for a car accident case, run. A reputable personal injury firm should always be an open book regarding finances.
Conclusion: Justice Should Be Free of Financial Fear
The question of “who pays legal fees” ultimately has a comforting answer: The insurance company pays, and only when they are forced to compensate you fairly.
You have enough on your plate dealing with doctors, physical therapy, and the emotional toll of your accident. You shouldn’t have to worry about how to afford a high-quality legal defense.
At The Moran Law Group, we level the playing field. We give you the power of a top-tier litigation firm without the price tag. We take the risk so you don’t have to.
If you or a loved one has been injured, don’t let financial fear stop you from asking for help. Contact us today. Let us review your case for free, explain your options, and welcome you into our family.
Frequently Asked Questions (FAQ)
1. Do I have to pay a retainer fee to hire a personal injury lawyer?
No. Reputable personal injury attorneys, including The Moran Law Group, work on a contingency fee basis. We do not require any upfront payment or retainer. We only get paid if and when we successfully resolve your case.
2. What percentage do lawyers take from a personal injury settlement?
The industry standard is typically 33.3% (one-third) of the settlement if the case is resolved before filing a lawsuit. If the case requires filing a lawsuit or going to trial, the fee usually increases to 40% to account for the increased labor, risk, and complexity.
3. Who pays for the expert witnesses and court costs?
Your attorney typically advances these costs. At The Moran Law Group, we pay for medical records, expert witnesses, and court filing fees out of our own pocket as the case progresses. We are then reimbursed for these specific expenses from the final settlement amount.
4. If I lose my case, will I owe my lawyer money?
No. Under a contingency fee agreement, if there is no recovery (no settlement and no verdict), you owe zero attorney fees. In most cases, you also owe nothing for case costs. You carry no financial risk in pursuing your claim.