How to Review a Personal Injury or Wrongful Death Lawyer Fee Agreement in Tennessee 

Hiring a personal injury lawyer or wrongful death lawyer is an important decision. For many people, it is also the first time they have ever hired an attorney. That means most injured people and their families have little experience reviewing an attorney fee agreement or knowing whether the terms being offered are reasonable for their situation. 

At The Law Offices of John Day, P.C., we have represented people injured through the fault of others for more than 30 years. Our Tennessee personal injury attorneys represent individuals and families in personal injury and wrongful death cases, including car accidents, commercial truck accidents, medical malpractice, defective products, nursing home abuse and neglect, premises liability, and other serious injury claims. 

Our firm has offices in Nashville, Brentwood, and Murfreesboro, but our personal injury lawyers represent clients throughout Tennessee. We regularly handle cases for people in Middle Tennessee communities including Nashville, Franklin, Brentwood, Murfreesboro, Clarksville, Lebanon, Gallatin, Dickson, Cookeville, and surrounding communities. Our attorneys also represent clients in East and West Tennessee, including Knoxville, Chattanooga, Johnson City, Jackson, Memphis, and communities throughout the state. 

One thing we have learned from decades of representing injured Tennesseans is that people should understand the financial terms of hiring a lawyer before they sign an agreement. 

Personal injury and wrongful death fee agreements can be several pages long and may contain terms that are unfamiliar to someone who does not work in the legal field. Today, these contracts are also frequently sent electronically. You may receive a text message or email asking you to review and sign an agreement on your phone. While electronic signatures can make the hiring process convenient, reading a lengthy legal contract on a small screen can make it easy to overlook important provisions. 

Before hiring a Tennessee personal injury lawyer, take the time to understand exactly how the attorney will be paid, what case expenses you may be responsible for, how those expenses are handled, and whether there are additional charges beyond the contingency fee. 

The percentage listed at the beginning of the contract is important, but it is not the only number that matters. Case costs, interest, lien resolution expenses, administrative charges, and other provisions can potentially affect how much money a client ultimately receives from a personal injury settlement or wrongful death recovery. 

Understanding the entire personal injury fee agreement before signing it can help you make a more informed decision about the lawyer and law firm you choose. 

How Do Contingency Fees Work in Tennessee Personal Injury Cases? 

Most personal injury and wrongful death attorneys handle cases using a contingency fee arrangement. Instead of requiring the client to pay an attorney by the hour as the case progresses, the lawyer receives an agreed percentage of the recovery if money is obtained for the client. 

In other words, the attorney fee is contingent upon the outcome of the case. 

If the case results in a settlement or verdict, the attorney receives the percentage specified in the fee agreement. If the case is unsuccessful, the client typically does not owe an attorney fee. However, the contract should also explain what happens to case expenses if there is no recovery. 

At The Law Offices of John Day, P.C., personal injury and wrongful death cases are handled on a contingency fee basis, and if the case is unsuccessful we do not require our client to reimburse us for the case expenses we incurred. Potential clients can also speak with the firm about a possible case through a free consultation. 

Consider a simple example. If a personal injury case settles for $75,000 and the agreed contingency fee is 33.33 percent, the attorney fee would be approximately $25,000. That would leave approximately $50,000 before case expenses, medical bills, liens, or other amounts that must be paid from the recovery. 

This is why understanding the difference between attorney fees and case expenses is so important. The contingency percentage alone does not necessarily tell you what your final recovery will be. 

What Percentage Does a Personal Injury Lawyer Charge? 

There is no single contingency fee percentage that applies to every Tennessee personal injury or wrongful death case. 

Historically, one- third, or 33.333 percent, has been a common benchmark for standard personal injury cases in Tennessee. However, attorney fee structures vary among law firms, and now some firms charge 40 percent or more for personal injury and wrongful death cases and some firms charge different percentage fees depending on the type of case. 

Some personal injury law firms also use a sliding fee structure based on the stage at which the case is resolved. For example, a contract might provide for one percentage if a claim settles before a lawsuit is filed, a higher percentage after litigation begins, and another percentage if the case proceeds through trial or appeal. 

That makes it important to look beyond the percentage you initially see or hear in an advertisement or conversation. 

Before signing a personal injury attorney fee agreement, determine the exact percentage that will apply if your claim settles before a lawsuit is filed. Then determine whether that percentage changes once a lawsuit is filed, when trial preparation begins, if the case goes to trial, or if an appeal becomes necessary. 

Why Does the Contingency Fee Percentage Matter So Much? 

At first glance, the difference between a 33.33 percent contingency fee and a 40 percent contingency fee may not seem particularly large. But that difference can become significant as the value of a personal injury or wrongful death recovery increases. 

Suppose a case results in a $100,000 recovery. A 33.333 percent attorney fee would be approximately $33,333. A 40 percent attorney fee would be $40,000. The difference is approximately $6,667.   

Now consider a $1 million recovery. At 33.333 percent, the attorney fee would be approximately $333,333. At 40 percent, the attorney fee would be $400,000. That is a difference of approximately $66,667. 

Another way to understand the difference is to compare the attorney fees themselves rather than simply subtracting the percentages. Moving from a 33.33 percent fee to a 40 percent fee represents roughly a 20 percent increase in the amount of the fee. 

That does not mean one fee arrangement is automatically appropriate or inappropriate. Personal injury cases vary considerably in complexity, risk, required resources, and the amount of attorney work involved. The important point for a potential client is to understand the percentage being charged and what financial impact that percentage has on the ultimate recovery in the case.  

Does the Attorney Fee Change If a Lawsuit Is Filed? 

Some personal injury fee agreements provide for different contingency percentages depending on when the case is resolved. 

For example, a law firm could charge 33.33 percent if a personal injury claim settles before a lawsuit is filed, 40 percent if the case settles after litigation begins, and 45 percent if the case is not resolved until after trial.  If that is the case, it should be clearly spelled out in the written fee agreement.  

Do not assume that the percentage discussed during an initial phone call will remain the same throughout the entire case. Instead, read the contract carefully and determine whether the contingency fee increases at any particular stage. If it does, make sure you understand exactly  what triggers the increase. 

Does the percentage increase when the complaint is filed? Does it increase when substantial trial preparation begins? Is there a different percentage after a verdict? What happens if an appeal becomes necessary? 

Understanding these provisions at the beginning of the attorney client relationship can prevent surprises later. 

What Are Case Costs in a Personal Injury Claim? 

Attorney fees and case costs are generally two different things. 

The attorney fee compensates the lawyer and law firm for their legal services. Case costs, sometimes called case expenses, are the expenses incurred by the law firm associated with investigating, preparing, and pursuing the personal injury or wrongful death case. 

Depending on the type and complexity of the claim, these expenses may include the cost of obtaining medical records and medical bills, expert witness expenses, court filing fees, deposition expenses, court reporter charges, transcript costs, and expenses associated with preparing exhibits or other evidence. 

In many contingency fee arrangements, the law firm advances these expenses while the case is pending. The firm is then reimbursed from the client’s recovery when the case is successfully resolved. 

Before signing an agreement, ask what the law firm considers a reimbursable case expense and how those expenses will appear on the final settlement statement.  Then, carefully read the fee agreement to make sure that it aligns with what you were told.  

It is also important to determine whether the client could be responsible for any expenses if there is no financial recovery. The answer should be clearly addressed in the fee agreement. 

 
Case Costs:  How Does a Personal Injury Law Firm Obtain Medical Records? 

Medical records and bills are often critical evidence in a personal injury, wrongful death or medical malpractice case. They can help establish the nature of an injury, the treatment received, the cost of medical care, and how an injury has affected a person’s health. 

But there can be different ways for a law firm to obtain those records. 

Some firms use their own employees to request and collect medical records. In that situation, the client may be charged only for the amount the healthcare provider or records custodian charges to produce the documents. 

Other law firms use an outside records retrieval company. If a third- party company charges an additional retrieval fee, that charge may also be passed along to the client as a case expense. 

Over the course of a personal injury case involving multiple doctors, hospitals, specialists, or treatment facilities, additional records retrieval charges can add up. 

Ask who will obtain your medical records and exactly what you will be charged for that service. A potential difference of hundreds of dollars in case expenses may be worth understanding before you sign the contract. 

Case Costs:  Are There Administrative, Technology, or AI Charges? 

A traditional case expense is generally an actual expense associated with developing and pursuing the client’s case. But some attorney fee agreements may also contain additional charges that are not directly tied to a particular court filing, medical record, expert, or deposition. 

For example, a contract could include an administrative charge or file opening fee. 

As technology becomes more common in law offices, clients should also determine whether a firm charges separately for software, technology platforms, artificial intelligence tools, or other systems used internally by the law firm. 

These provisions may be described as costs or expenses in the fee agreement. 

Rather than assuming what a particular term means, ask the law firm for an itemized explanation of what qualifies as a reimbursable case cost. Ideally, the definition should be provided in writing. 

The objective is not simply to determine whether there are expenses. Nearly every significant personal injury or wrongful death case will require expenses. The more important question is what expenses the client is expected to pay and how those expenses are calculated. 

Case Costs:  Is Interest Charged on Personal Injury Case Expenses? 

Another provision worth checking carefully is whether the law firm charges interest on money it advances for case expenses. 

Some fee agreements permit a firm to charge interest on advanced costs during the time between when the expense is paid and when the personal injury case is resolved. Rates referenced in some agreements can reach approximately 1.5 percent per month, or approximately 18 percent on an annualized basis. 

This can become significant in a complicated case that takes several years to resolve. 

Suppose a law firm advances $10,000 for an expert witness and the contract provides for interest at 1.5 percent per month. Over 24 months, simple interest could add approximately $3,600 to that expense. The client’s obligation associated with that $10,000 cost would then be approximately $13,600. 

A case involving multiple experts or substantial litigation expenses could produce an even greater difference. 

When reviewing a personal injury fee agreement, determine whether the firm charges interest on advanced costs. If it does, identify the interest rate and ask whether the interest is calculated using simple interest or compound interest. 

The longer and more expensive the case becomes, the more important this provision can be. 

Case Costs:  How Do Medical Liens Affect a Personal Injury Settlement? 

Receiving a personal injury settlement does not necessarily mean the entire settlement amount goes directly to the injured person. 

Medical providers, health insurance companies, certain employer sponsored health plans, Medicare, Medicaid, and other entities may have reimbursement rights or liens that must be addressed before a case can be completely resolved. 

In simple terms, a lien can give another person or organization a legal right to seek repayment from the money recovered in a personal injury case. 

Resolving those claims can be an important part of maximizing the amount of money that ultimately reaches the client. 

If a lawyer can properly reduce an amount that must be repaid, more of the settlement may remain available to the injured client after all obligations are satisfied. 

For that reason, potential clients should understand how a law firm handles medical liens and reimbursement claims before hiring the firm. 

Case Costs:  Does the Law Firm Charge an Additional Fee for Lien Resolution? 

Traditionally, negotiating medical liens and reimbursement claims has often been part of the attorney’s work in resolving a personal injury case and therefore covered by the contingency fee. 

However, some personal injury law firms outsource lien resolution to an outside company and pass an additional charge along to the client. 

That additional charge may sometimes be based on the amount the outside company saves through its negotiations. This means the client could pay the normal contingency fee and then pay another amount associated with resolving liens or reimbursement claims. 

The charge may be identified as a case cost even though it relates to work associated with resolving the client’s financial obligations after settlement. 

Before signing a fee agreement, ask whether the attorneys and staff at the law firm handle lien resolution themselves or whether the work is sent to an outside company. 

If an outside company is used, ask whether you will be charged separately for its services, how that charge is calculated, and approximately how much it typically costs. 

You should also determine whether the additional charge applies to routine lien negotiations or only to unusual situations in which a lien dispute requires separate litigation. 

Look at the Total Cost of Hiring a Personal Injury Lawyer 

When comparing Tennessee personal injury attorneys, focusing exclusively on the contingency percentage can provide an incomplete picture. 

The total financial impact of a fee agreement can include the contingency fee, case expenses, records retrieval charges, administrative fees, interest on advanced expenses, lien resolution charges, and potentially other costs described in the contract. 

These amounts can accumulate. 

Two personal injury law firms could advertise contingency fees that initially sound similar while ultimately producing different net recoveries for the client because of the way each firm handles expenses and additional charges. 

One useful approach is to ask the attorney to explain how the firm’s fee agreement would work in a realistic example. 

Ask what would happen if a hypothetical case settled for a particular amount after a certain period of time and required typical medical record expenses, depositions, expert witnesses, and lien negotiations. While an attorney cannot know the exact costs of a case before investigating it, a concrete example may help you understand how the contract operates. 

The goal is to understand not only the attorney’s percentage but also the complete financial arrangement. 

What Happens If You Have a Dispute With Your Personal Injury Lawyer? 

Fee agreements may also contain provisions describing what happens if the client and law firm later disagree. 

Those provisions deserve the same attention as the contingency percentage. 

One issue to look for is whether disputes must be handled in court or through private arbitration. Arbitration is a private process for resolving disputes outside the traditional court system. Agreeing to arbitration can affect the procedures available to the client and potentially the cost and manner in which a disagreement is resolved.  It allows the law firm to avoid a public airing of the dispute.   

The agreement may also contain a fee shifting provision. Sometimes described as a “loser pays” provision, this type of clause may require the unsuccessful party in a dispute to pay the other party’s attorney fees. 

That can create additional financial considerations for a client who later challenges a bill, disputes an expense, or brings another claim against the law firm.  Most law firms will have greater financial resources than their clients, so including this type of provision in the fee agreement gives the law firm an upper hand over their clients.   

Before signing, determine exactly how disputes between you and the firm will be handled and whether either party could be responsible for the other side’s attorney fees. 

Can You Speak With a Personal Injury Lawyer Before Signing? 

You should also consider who is available to answer your questions before you commit to hiring a law firm. 

Some law firms use intake employees to communicate with potential clients and send attorney fee agreements for electronic signature. A prospective client may be asked to sign the contract before having a meaningful conversation with an attorney. 

If you have questions about a contingency percentage, case expenses, medical liens, litigation costs, or another provision in the agreement, ask whether you can discuss those questions with a lawyer before signing. 

Hiring a personal injury attorney can begin a professional relationship that lasts months or even years. Having an opportunity to speak with an attorney before signing can help you learn more about the firm, understand the agreement, and decide whether you are comfortable with the representation. 

You should not feel pressured to sign a legal services contract simply because it arrived by text message or email. 

Take the time necessary to read it. 

Questions to Ask Before Signing a Personal Injury Attorney Fee Agreement 

Before signing a personal injury or wrongful death fee agreement, make sure you understand the entire financial arrangement. 

• Know the exact contingency percentage and whether that percentage changes depending on whether the case is resolved before suit, after a lawsuit is filed, at trial, or on appeal. Determine whether the attorney fee is calculated before or after case expenses are deducted. 

• Ask the firm to explain what qualifies as a reimbursable case expense and whether you can receive an itemized definition of those expenses. Find out how medical records are obtained and whether an outside records retrieval company will result in additional charges. 

• Ask whether the contract includes administrative expenses, file opening charges, software expenses, artificial intelligence charges, or other costs that are separate from traditional case expenses. 

• Determine whether the law firm charges interest on money advanced for the case. If interest is charged, understand the rate and how it is calculated. 

• Ask how the firm handles medical liens, health insurance reimbursement claims, Medicare or Medicaid obligations, and other claims against the settlement. Determine whether the attorneys and staff perform this work or whether lien resolution is outsourced to another company for an additional fee. 

• Read the dispute resolution provisions carefully so you know whether a disagreement with the firm would be handled in court or through arbitration and whether the contract contains a provision requiring one party to pay the other party’s legal fees. 

• Finally, make sure you can speak with an attorney about anything in the agreement that you do not understand before you sign it.  A firm that refuses you the opportunity to speak with a lawyer before you sign a fee agreement is waiving a red flag about its willingness to have appropriate communicate in the case.  

• You should also receive the agreement in a format that you can comfortably read, save, and review later. If a contract is difficult to read on your phone, ask for a copy that can be reviewed on a larger screen or printed. 

Choosing a Tennessee Personal Injury or Wrongful Death Lawyer 

The attorney fee agreement is only one factor to consider when choosing a Tennessee personal injury lawyer or wrongful death attorney. 

Experience, communication, resources, knowledge of Tennessee personal injury law, willingness to answer questions, and the lawyer’s approach to investigating, preparing, negotiating, and trying cases can also be important considerations. 

At The Law Offices of John Day, P.C., our attorneys bring together more than 100 years of experience representing clients. Members of the firm have also written legal reference materials and taught other lawyers about Tennessee tort and trial law. 

Our personal injury attorneys represent people who have been seriously injured and families who have lost loved ones because of the fault of others. The firm handles many different types of Tennessee personal injury and wrongful death cases, including automobile accidents, trucking accidents, medical negligence, defective products, nursing home abuse and neglect, premises liability, sexual abuse, pedestrian accidents, motorcycle accidents, and catastrophic injury cases. 

But regardless of the lawyer or law firm you are considering, the financial terms of the relationship deserve careful attention. 

Before hiring a personal injury law firm, understand what percentage of your recovery will be paid as an attorney fee. Know whether that percentage can increase. Understand what expenses you will reimburse, whether interest can be charged, how medical liens will be handled, whether outside companies will generate additional costs, and what happens if you and the law firm later disagree. 

Most importantly, do not hesitate to ask questions. 

A personal injury or wrongful death case may involve significant financial and personal consequences. You should understand the agreement governing your relationship with the attorneys handling that case before you sign it. 

Tennessee Personal Injury Lawyers Serving Clients Across the State 

The Law Offices of John Day, P.C. is based in Middle Tennessee with offices in Nashville, Brentwood, and Murfreesboro. From these locations, our personal injury and wrongful death attorneys represent clients throughout Tennessee. 

In Middle Tennessee, the firm serves clients in Davidson County, Williamson County, Rutherford County, Sumner County, Wilson County, Dickson County, Maury County, Montgomery County, and surrounding areas. This includes communities such as Nashville, Brentwood, Franklin, Spring Hill, Murfreesboro, Clarksville, Gallatin, Hendersonville, Lebanon, Mt. Juliet, Dickson, and many others. 

Our representation is not limited to Middle Tennessee. The firm’s attorneys handle personal injury and wrongful death cases throughout the state, including communities in East Tennessee and West Tennessee. The firm identifies Knoxville, Chattanooga, Kingsport, Johnson City, Jackson, and Memphis among the cities where its attorneys represent clients. 

For more than three decades, The Law Offices of John Day, P.C. has represented people injured because of the fault of others. Our attorneys understand that people contacting a personal injury law firm are often doing so during one of the most difficult periods of their lives. A serious injury or the death of a family member can bring medical concerns, financial uncertainty, insurance questions, and an unfamiliar legal process all at the same time. 

Part of choosing the right Tennessee personal injury lawyer is understanding who will handle your case and how the attorney client relationship will work. Another part is understanding exactly what you will pay. 

That is why we believe potential clients should read a personal injury fee agreement carefully, understand its terms, and ask questions before signing. 

Talk With a Tennessee Personal Injury Lawyer About Your Case 

If you or a family member has been seriously injured because of someone else’s fault, or if your family has lost a loved one and you believe another person or company may be responsible, The Law Offices of John Day, P.C. offers free consultations to discuss potential personal injury and wrongful death claims. 

Our attorneys serve clients throughout Tennessee from offices in Nashville, Brentwood, and Murfreesboro. The firm handles personal injury and wrongful death cases on a contingency fee basis. 

Before hiring any lawyer, take the time to understand the fee agreement, ask questions about anything that is unclear, and make sure you understand both the attorney fee and the expenses that may affect your recovery. 

An informed client should know not only what the lawyer will do, but also how the lawyer will be paid. 

This information is educational and general in nature. It is not legal advice and does not address the law of every state. Attorney fee agreement requirements and customary practices vary by jurisdiction. Anyone with questions about a specific fee agreement or legal situation should consult a licensed attorney in the appropriate state.