How Much Do Lawyers Take From a Settlement in Texas?

In Texas, personal injury lawyers typically take between 33% and 40% of a settlement under a contingency fee agreement, with the exact share depending on how far the case has progressed when it resolves. That percentage is only part of the story: how much lawyers take from a settlement in Texas also depends on case costs, medical liens, and insurance reimbursement claims that come out of the same check. Most clients end up with roughly 30% to 40% of the gross settlement after everything is paid.¹

The Standard Sliding Scale

Nearly every Texas personal injury firm uses a tiered contingency fee that rises as the case gets harder to resolve:

33.33% (one-third) if the case settles before a lawsuit is filed.
40% once a lawsuit is filed and the case moves into litigation.
45% if the case goes to appeal after trial.

Some firms charge 35% rather than 33% for pre-suit settlements.²³⁴ Texas law doesn’t fix a specific rate, and attorneys will sometimes negotiate based on the strength of liability, the clarity of damages, how quickly the case is likely to settle, and whether the client has offers from other firms.⁵ A straightforward rear-end collision with clean liability may warrant a lower rate than a years-long medical malpractice fight.

Gross or Net: Which Figure the Percentage Comes Off

One line in the fee agreement can change your check by thousands of dollars: whether the attorney’s percentage is calculated on the gross settlement or on the net after case costs are subtracted. There is no uniform Texas standard.⁶ Some firms take their percentage off the gross and then deduct expenses from your remaining share. Others subtract costs first and apply the percentage to the smaller net figure.⁷ Ask about this before you sign.

Case Costs Come Out Too

Separate from the percentage fee, you are typically responsible for reimbursing the firm for the out-of-pocket expenses it advanced to build the case. Common items include court filing fees, medical record and police report charges, deposition transcripts, court reporter fees, expert witness fees, and investigator costs.⁸ Expect a few hundred dollars on a simple case and roughly 5% to 10% of the gross settlement on more complex litigation.⁹

Some contingency agreements require you to repay case costs even if the case is lost. Others waive those costs when there’s no recovery. The written agreement should say which.¹⁰

Medical Liens and Insurance Reimbursement

Medical liens are often the biggest surprise on a settlement statement. Under Texas Property Code Chapter 55, a hospital or emergency provider that treats an accident victim within 72 hours of the injury can file a lien against the eventual settlement.¹¹ A 2019 amendment caps hospital liens at the lesser of the hospital’s charges for the first 100 days of treatment or 50% of the total settlement.¹² The lien must also reflect “usual, customary, and reasonable” rates, which are often far below the initial billed amount.¹³

Private health insurers frequently assert subrogation rights for medical bills they already paid. The impact depends on the plan. Employer-sponsored plans governed by the federal ERISA statute can be particularly aggressive and may be entitled to full reimbursement regardless of whether your settlement fully compensated you. Non-ERISA plans, which are fully insured and state-regulated, may be subject to the Texas “made whole” doctrine, which can limit an insurer’s claim when you weren’t made whole.¹¹

Medicare and Medicaid have federal priority rights to recover the medical expenses they covered, and failing to resolve them can trigger penalties and interest.¹⁴ Those programs do apply a proportional reduction to account for your attorney fees and costs.¹⁵ Negotiating liens down is part of what a personal injury lawyer does, and reductions of 20% to 50% are common.¹

A $100,000 Settlement, Divided

Four categories come out of a Texas personal injury settlement: the attorney’s fee, case costs, medical liens and reimbursement claims, and your net recovery. On a $100,000 pre-suit settlement with modest medical liens, the breakdown might look like this:

Attorney’s fee at 33%: −$33,000
Case costs at roughly 5%: −$5,000
Medical liens: −$2,000
Your net recovery: $60,000⁹

Heavier medical debt eats into that share quickly. A $50,000 pre-suit settlement with $10,000 in medical liens and $5,000 in case costs leaves roughly $18,335 after a one-third attorney fee.⁴ In one reported case, a $100,000 policy-limits settlement netted the client $50,422 after fees, costs, and medical expenses.¹⁴

Workers’ Compensation Is Capped Lower

If your claim is a Texas workers’ compensation case rather than a standard personal injury case, a different rule applies. Under Texas Labor Code Section 408.221, an attorney’s fee in a workers’ comp claim cannot exceed 25% of your recovery, and the fee must be approved by the workers’ compensation commissioner or a court.¹⁶ The 33% to 40% figures above don’t apply.

What the Fee Agreement Must Say

Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct requires every contingency fee agreement to be in writing and signed by the client.¹⁷ It has to spell out how the percentage is calculated, each separate percentage if the rate slides between settlement, trial, and appeal, which litigation costs will be deducted, and whether those costs come out before or after the fee is calculated. When the case ends, your lawyer must give you a written statement showing the outcome, the total recovery, and how the money was divided.¹⁸

Texas doesn’t impose a numerical cap on contingency fees in standard personal injury cases. The limit is that no fee can be “unconscionable,” judged against factors like time involved, complexity, the customary fee in the area, and the results obtained.¹⁷

If You Think the Fee Is Wrong

Start by raising the issue with your lawyer directly. If that doesn’t resolve it, the State Bar of Texas Client-Attorney Assistance Program (CAAP) at 1-800-932-1900 can help open the conversation.¹⁹ Local bar associations in Houston, San Antonio, Dallas, and Austin run fee dispute committees that can arbitrate billing disagreements, often at no cost, though the attorney’s participation is voluntary.²⁰ If the fee appears truly unconscionable, you can file a formal grievance with the State Bar.

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