Short Answer

In North Carolina, a contingency-fee agreement means your attorney’s fee is a percentage of the recovery, and you generally owe no attorney’s fee if there is no recovery. Whether you should sign depends on whether you understand (1) the percentage, (2) whether it applies to the “gross” recovery or the “net” recovery after costs, and (3) which case expenses you may still have to repay from any settlement. The percentage usually covers the attorney’s legal work, but it typically does not include case costs like medical records fees, filing fees, or deposition costs unless the contract says otherwise.

Understanding the Problem

If you were hurt in a North Carolina motor vehicle accident and you are receiving chiropractic treatment, the decision point is whether you can sign a contingency-fee agreement with a personal injury attorney to pursue your injury claim, and what the stated percentage actually pays for versus what you may still have to reimburse later.

Apply the Law

In a typical North Carolina car accident injury claim, a contingency fee is a private contract between you and your attorney that sets the attorney’s fee as a percentage of the recovery (usually a settlement or a court judgment). The agreement should clearly explain the percentage, when it applies (for example, before or after a lawsuit is filed), and how case expenses are handled. Even with a contingency fee, settlement money does not automatically become “yours to spend” until required payments are addressed, including valid medical-provider liens that attach to injury recoveries under North Carolina law.

Key Requirements

• Clear percentage and trigger: The agreement should state the percentage and when it changes (for example, if a lawsuit is filed or if an appeal is needed).
• Define the base (gross vs. net): The contract should say whether the percentage is taken from the total recovery before costs (“gross”) or after costs are reimbursed (“net”).
• Costs and expenses spelled out: It should explain which case expenses may be advanced by the firm and whether you must repay them from any recovery.
• How medical bills and liens are handled: The agreement (and your attorney’s process) should address how medical providers, health insurers, and other lienholders may be paid from the settlement.
• Settlement disbursement transparency: You should expect a written breakdown showing the settlement amount, attorney’s fee, costs, and payments to lienholders before you receive your portion.

What the Statutes Say

• N.C. Gen. Stat. § 44-50 (Medical provider liens on injury recoveries) - Provides that certain medical-provider liens can attach to settlement/judgment funds and requires funds to be retained before disbursement after notice of claims.
• N.C. Gen. Stat. § 44-50.1 (Accounting of disbursements) - Requires a certification/accounting in certain lien-payment situations that includes the total settlement, lien distributions, and total attorney’s fees.
• N.C. Gen. Stat. § 84-38 (Solicitation and improper fee-splitting) - Prohibits certain solicitation practices and improper division of legal fees with nonlawyers.

Analysis

Apply the Rule to the Facts: Because you are treating with a chiropractor after a North Carolina car accident, a contingency-fee agreement can be a practical way to hire a lawyer without paying hourly fees up front. Before you sign, match the agreement to the key requirements above: confirm the percentage, confirm whether it is calculated on the gross or net recovery, and confirm how costs (like medical records and filing fees) are handled. Also ask how the firm will address medical bills and any liens so you understand what the percentage covers versus what will still be paid out of the settlement.

Process & Timing

1. Who signs: You (the injured person) and the attorney. Where: The law office (in person or electronically) in North Carolina. What: A written contingency-fee agreement plus authorizations to obtain medical records and bills. When: Ideally before the firm starts work and before the firm orders records or incurs expenses.
2. During the claim: The firm investigates, gathers medical records/bills, evaluates insurance coverage, and negotiates. As costs are incurred (records fees, postage, etc.), the agreement should say whether the firm advances them and how they are tracked.
3. At settlement: You should receive a settlement statement showing the total recovery, the attorney’s fee (the percentage), itemized costs, and payments to medical providers/lienholders, with the remainder disbursed to you.

Exceptions & Pitfalls

• “Percentage covers everything” misunderstanding: Many people assume the percentage includes all expenses. Often it covers legal services, while case costs are separate and reimbursed from the recovery. The contract controls.
• Gross vs. net confusion: A one-line “33 1/3% contingency fee” is not enough. Ask: “Is the percentage calculated before or after costs are repaid?”
• Medical bills and liens reduce the take-home amount: Even with a strong claim, settlement funds may have to pay medical providers or lienholders after proper notice. North Carolina’s medical lien statutes can affect disbursement. See N.C. Gen. Stat. § 44-50.
• Unclear “costs” definitions: Watch for broad language that includes items like expert witnesses, depositions, or litigation support. Ask for examples of typical costs in a car accident case.
• Signing while still treating without a plan: Ongoing chiropractic care can change the value and timing of a claim. Make sure you understand how the firm approaches settlement timing and documentation of treatment.

Conclusion

In North Carolina, a contingency-fee agreement usually means your attorney is paid a stated percentage of any settlement or judgment, and the agreement should also explain how case costs and medical lien payments affect what you receive. The percentage typically pays for the attorney’s legal work, while expenses are often reimbursed separately from the recovery. Your next step is to request a written fee agreement and settlement-statement example and confirm, in writing, whether the percentage is calculated on the gross recovery or the net recovery after costs.

Talk to a Personal Injury Attorney

If you’re dealing with a car accident injury claim and you’re deciding whether to sign a contingency-fee agreement, a personal injury attorney can walk you through the percentage, likely costs, and how medical bills and liens may affect your final payout. Reach out today.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.