How Do Lawyers Get Paid if They Lose a Case?

August 13, 2025 | Personal Injury

How Do Lawyers Get Paid if They Lose a Case?

If you’ve been injured in a car accident and are considering hiring a personal injury attorney, one of the first questions you might have is: What happens if my lawyer loses my case? This is a reasonable concern, especially if you’re facing medical bills, lost wages, and other financial pressures after an accident.

The good news is that most personal injury lawyers in Pennsylvania work on a contingency fee basis, which means their payment depends on winning your case. If they don’t secure a settlement or verdict in your favor, you typically won’t owe them attorney’s fees.

Understanding the Contingency Fee Arrangement

In personal injury law, a contingency fee is an agreement where your lawyer only gets paid if they recover compensation for you. Instead of charging an hourly rate or requiring an upfront retainer, the attorney takes a percentage of the settlement or jury award.

This system is designed to make legal representation accessible to injury victims regardless of their financial situation. You can focus on your recovery without worrying about paying for legal services out of pocket during the case.

Pennsylvania Rules on Contingency Fees

Pennsylvania law allows contingency fee arrangements for personal injury cases, provided they are reasonable and clearly outlined in a written agreement. According to Pennsylvania Rule of Professional Conduct 1.5(c), the agreement must specify the method for determining the fee, including the percentage that will accrue in the event of settlement, trial, or appeal. It must explain any expenses that will be deducted from the recovery.

This means that before you hire a lawyer, you’ll know exactly how their payment will be calculated and what costs might be your responsibility.

What Happens if the Lawyer Loses?

If your lawyer loses the case and recovers nothing, the contingency fee arrangement means you generally don’t owe any attorney’s fees. 

However, there’s an important distinction between attorneys’ fees and case costs:

  • Attorney’s fees are the payment for the lawyer’s time and services.
  • Case costs are expenses incurred while building your case, such as court filing fees, expert witness fees, medical record retrieval, and deposition transcripts.

Some Pennsylvania personal injury firms will cover these costs upfront and only recover them if they win your case, while others may require reimbursement regardless of the outcome. Your fee agreement will make this clear.

Case Costs and Pennsylvania Law

While Pennsylvania law doesn’t prohibit lawyers from seeking reimbursement of case costs if they lose, consumer protection principles and ethical rules require that these terms be disclosed in the contingency fee agreement. Under Pennsylvania Rule of Professional Conduct 1.8(e), attorneys may advance litigation costs, but repayment responsibilities must be clearly explained to the client.

Before signing, review your agreement carefully and ask your lawyer whether you would be responsible for these expenses if the case is unsuccessful.

Why Lawyers Take This Risk

Working on a contingency basis means the attorney assumes a significant financial risk. They invest time, resources, and expertise into your case without a guarantee of payment. This arrangement also aligns your lawyer’s interests with yours since it benefits by maximizing the settlement or verdict amount.

It also ensures that lawyers are selective about their cases, focusing on those with strong evidence and a high likelihood of success.

Benefits of a Contingency Fee for Clients

For injury victims, contingency fees offer several advantages:

  • No upfront costs: You can pursue justice without draining your savings.
  • Incentive for success: Your lawyer is motivated to work hard to win.
  • Access to experienced attorneys: Even complex cases can be handled by skilled lawyers without you paying hourly rates.

This arrangement can level the playing field when facing large insurance companies and their legal teams.

Questions to Ask Before Signing a Contingency Fee Agreement

To protect yourself and avoid surprises, ask your lawyer:

  • What percentage will you charge if we settle? What about if we go to trial?
  • Will I owe case costs if we lose?
  • How will expenses be handled during the case?
  • Can you provide a written copy of the fee agreement?

Having these answers upfront ensures you understand the financial implications of your representation.

What Pennsylvania Injury Victims Should Remember

If your personal injury lawyer loses your case in Pennsylvania, you generally won’t owe them attorney’s fees under a contingency fee arrangement. However, depending on your agreement, you may still be responsible for certain case costs.

Understanding your contract, knowing your rights under Pennsylvania law, and working with a reputable attorney can help you make informed decisions about your representation.

Transparency Is Key

A contingency fee system allows Pennsylvania accident victims to seek justice without financial risk, but transparency is essential. Before hiring a lawyer, make sure you fully understand the terms of your agreement, including how fees and costs will be handled in the event of a loss.

By choosing a lawyer who clearly explains their policies and complies with Pennsylvania’s ethical rules, you can focus on what matters most: your recovery and your future.

Contact the Harrisburg Personal Injury Lawyers at Marzzacco Niven & Associates for Help Today

If you’ve been injured by someone else’s negligence, you may be entitled to compensation. Contact the Harrisburg personal injury lawyers at Marzzacco Niven & Associates for help today. We offer free consultations.

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