What a personal injury lawyer really costs in Texas, and what you take home

Nothing up front, a percentage at the end

For most personal injury cases in Texas, hiring a lawyer costs nothing up front. Injury firms, including ours at Garcia, Garcia & Mullen, typically work on a contingency fee: the lawyer is paid an agreed percentage of whatever is recovered, and if there is no recovery, you owe no attorney fee. The consultation is free. What you actually take home depends on three things: the fee percentage, the case expenses, and any medical bills or liens that must be paid from the recovery.

I am a founding partner at our firm, and personal injury is my practice. The question behind "what does a lawyer cost" is almost always a different one: "Can I afford to get help while I am out of work and the bills are arriving?" The answer is usually yes. This guide explains how the money moves so you can read any fee agreement with confidence. It is general information, not legal advice for your situation; for that, talk to a licensed Texas attorney about your facts.

How a contingency fee works from the first call to the final check

A contingency fee shifts the financial risk of the case from you to the firm. We invest our time and the work of building the case on the understanding that we are paid only if we recover compensation for you, and for our injury clients, no recovery means no out-of-pocket risk. That arrangement exists, in Dallas and across Texas, because most injured people could never pay hourly rates for months of investigation, negotiation and, sometimes, litigation.

In Texas, a contingency fee agreement has to be in writing. The Texas Disciplinary Rules of Professional Conduct require the agreement to state how the fee is determined, to state each percentage if the fee differs between settlement, trial or appeal, and to list the expenses that will be deducted and whether they come out before or after the fee is calculated. At the end of the case, the lawyer must give you a written statement showing the outcome and how your share was figured. If a firm will not put those terms on paper for you to read before you sign, keep looking.

The percentage itself is set in the agreement and varies from firm to firm and case to case. Ask about it directly, and ask whether it changes if a lawsuit is filed or the case goes to trial. A good lawyer answers that question without hesitating.

Attorney fees and case expenses are two different things

This is the point that surprises people most often. The fee is what the lawyer earns. Case expenses are the out-of-pocket costs of building the claim, and they are handled separately under the agreement. Some cases have very few expenses. A case that goes into litigation, or one that needs experts to explain an injury or a crash, can have substantial ones.

Two questions matter here. First, who pays the expenses if there is no recovery? Second, are expenses deducted from the total before the percentage is calculated, or after? The order changes your net amount, and the Texas rules require the agreement to say which applies.

• Medical records and billing records from every provider who treated you.
• Police and crash reports, and certified copies when a court needs them.
• Court filing fees and fees to serve the other side.
• Depositions and the court reporter transcripts that come with them.
• Expert witnesses, such as physicians or crash reconstruction specialists.
• Trial exhibits, medical illustrations and similar preparation costs.

Where the rest of a settlement goes before it reaches you

After the fee and expenses, the next deductions are usually medical. Hospitals, treating providers and health plans that paid for your accident care may have a right to be repaid from the recovery. If Medicare paid any of your accident-related bills, the Centers for Medicare and Medicaid Services says those conditional payments must be repaid when a settlement, judgment or award is made. Private health insurers often have reimbursement rights written into the plan as well.

Part of our work at the end of a case is confirming what is actually owed, challenging charges that are not related to the accident, and asking lienholders to reduce their claims where the law or the circumstances allow. That negotiation can change your net recovery as much as the settlement negotiation itself. It is also why I tell clients not to pay accident-related bills out of panic in the first weeks without talking to us; there may be a better order to resolve them, and your own coverage may help, which I explain in the guide on whose insurance pays your medical bills after a Texas crash.

If you are worried about the cost of a lawyer, the free consultation is the place to raise it. You will leave knowing exactly how the fee works before you commit to anything.

What makes one case cost more to bring than another

You do not pay the lawyer by the hour, but the economics of a case still shape how it is handled, so it helps to understand what drives the work. In my experience, the biggest factor is whether the insurer will pay a fair amount without a lawsuit. A claim that resolves after a well-documented demand involves far less expense than one that requires filing suit, taking depositions and preparing for trial.

The type of case matters too. A crash with an 18-wheeler can involve the driver, the trucking company and sometimes a maintenance provider or cargo loader, each with its own insurer and lawyers, and the evidence includes logs and electronic data that must be requested and analyzed. Serious injuries usually require medical testimony about future care. Disputed fault may call for a reconstruction expert. None of that should cost you anything up front, but it is why the agreement spells out expenses and why the timeline varies, which I cover in detail in how long an injury case takes in Texas.

When paying a lawyer's percentage does not make sense

A contingency fee is not the right tool for every claim, and I would rather tell someone that on the first call than take a case that leaves them worse off. If nobody was hurt and the only loss is damage to your car, and the other driver's insurer has accepted fault, you can usually handle the property claim yourself. Get repair estimates, understand how a total loss is valued, and push back politely if the number seems low. Paying a percentage of a vehicle check rarely makes sense.

The math changes when there is an injury that needed treatment, a dispute about who caused the crash, a commercial truck or rideshare vehicle involved, a driver with no insurance or too little of it, or a death in the family. In those cases the insurer has lawyers and adjusters who value claims every day, and the gap between what they offer an unrepresented person and what a well-documented claim is worth can be large. A free consultation is how you find out which side of that line you are on, at no cost, before you decide anything.

Will the IRS take part of the recovery?

Often not, but it depends on what the money is for. According to IRS Publication 4345, a settlement for personal physical injuries or physical sickness is generally not taxable, unless you deducted related medical expenses in an earlier year and got a tax benefit from that deduction. Emotional distress damages that come from a physical injury are treated the same way.

Other parts of a recovery are treated differently. The same IRS publication says punitive damages are taxable even in a physical injury case, and interest on a settlement is generally taxable. Because the details depend on how a settlement is allocated and on your own tax history, talk to a CPA or tax professional before you file the return for the year you receive the money. I flag the issue for clients early so that nobody is surprised the following spring.

Six lines to read in any injury fee agreement

Whether you hire our firm or another one, read the agreement before you sign and ask about anything that is not clear. A firm that wants your trust should welcome the questions. If you want a longer list for the consultation itself, I wrote one on what to ask an injury lawyer before you hire one.

• The fee percentage, and whether it changes if a lawsuit is filed, the case is tried or there is an appeal.
• Which expenses can be charged to the case, and whether they come out before or after the fee is calculated.
• Who pays the expenses if there is no recovery.
• How medical bills and liens will be handled when the case resolves.
• Who will actually work on your case and how you will reach them.
• How either side can end the relationship, and what happens to fees and expenses if that happens.

What a first conversation with our office costs

Nothing. The consultation is free, confidential and carries no obligation. You tell us what happened, what injuries you have and where things stand with the insurance company, and we tell you honestly whether we think you have a case and how the fee would work if you hire us. Our phone line is answered around the clock.

If you retain us, we put the agreement in writing, take over the calls from the insurer, investigate, and handle the negotiation and any lawsuit. For personal injury claims, you pay no attorney fee unless we recover compensation. We represent injured people throughout Dallas, Tarrant, Collin, Denton and Kaufman counties, and the earlier we hear from you, the more evidence we can protect.

Questions people ask me