Short Answer

In North Carolina car accident cases, attorneys typically work on a contingency fee: the fee is a percentage of your recovery and is paid only if there is a settlement or verdict. The fee agreement must be in writing and explain how expenses (costs) are handled and whether they are deducted before or after the fee is calculated. Settlement funds are deposited into a trust account, valid liens and costs are paid, and you receive the net, along with a written closing statement.

Understanding the Problem

You want to know, in North Carolina, how you will pay a personal injury lawyer for a car accident case—specifically whether you pay anything up front, what the percentage covers, and how case expenses are handled—especially since you previously worked with our firm on a different matter. This question focuses on your role as the injured person, the lawyer’s fee structure, and what happens to settlement money when it arrives.

Apply the Law

North Carolina allows contingency fees in personal injury cases. A contingency fee means the lawyer’s fee is a percentage of the recovery and is owed only if there is a recovery. The fee agreement must be in writing and must explain the percentage, what counts as expenses, and whether expenses are deducted before or after the fee is calculated. Settlement funds must be deposited into the attorney’s trust account, and the lawyer must pay valid liens and expenses before disbursing your net funds and providing a written closing statement. The main setting is your agreement with the law firm; if a lawsuit is filed, the forum is the county trial court, but the fee rules still apply. There is no fixed statutory deadline for disbursement, but funds must be handled promptly once they clear and lien issues are resolved.

Key Requirements

• Written contingency fee agreement: You and the lawyer must sign a written agreement stating the percentage and terms.
• Clear treatment of expenses (costs): The agreement must state what costs are, who pays them, and whether they are deducted before or after the fee is calculated.
• Trust account handling: Settlement funds go into a client trust account; disbursement follows only after funds clear and obligations are addressed.
• Lien resolution: Valid medical and related liens must be honored from settlement funds before you receive your net.
• Closing statement: At the end, you receive a written itemization showing the total recovery, fee, costs, lien payments, and your net.

What the Statutes Say

• North Carolina Rule of Professional Conduct 1.5(c) (Contingent fees) - Requires a written fee agreement explaining the percentage and expenses; written statement at the end.
• North Carolina Rule of Professional Conduct 1.15 (Trust accounts) - Settlement funds must be safeguarded, promptly disbursed after clearing, and properly accounted for.
• N.C. Gen. Stat. § 44-49 (Medical provider liens) - Allows providers to claim payment from settlement proceeds when proper notice is given.
• N.C. Gen. Stat. § 44-50 (Distribution of recovery) - Addresses how settlement funds are distributed, including payment of valid medical claims.

Analysis

Apply the Rule to the Facts: Because this is a North Carolina car accident, your fee can be a contingency percentage set out in a new written agreement, even if you worked with our firm before on something else. The agreement will explain costs and whether they come out before or after calculating the fee. When settlement funds arrive, they go to the trust account; valid liens and costs are paid first. You then receive the net along with a closing statement showing how everything was calculated.

Process & Timing

1. Who files: You and the law firm. Where: With the law firm (fee agreement); if suit is needed, the county trial court in North Carolina. What: A written contingency fee agreement that states the percentage and expense treatment. When: Sign before the firm negotiates or files anything on your behalf.
2. After settlement, the insurer issues the check to you and the firm; the firm deposits it into a trust account, confirms clearance, resolves known liens, and prepares an itemized disbursement for your approval. Timing for lien confirmations can vary by provider or agency.
3. Once liens and costs are resolved, the firm disburses your net funds and provides a written closing statement showing the recovery, fee, costs, lien payments, and your net.

Exceptions & Pitfalls

• Do not assume the fee includes costs; the agreement must specify who pays costs and when they are deducted.
• Switching lawyers mid‑case can create a fee claim by the first lawyer; clarify how this will be handled before changing counsel.
• Medical providers and health plans may have lien or reimbursement rights; failing to disclose them can delay disbursement.
• Claims involving minors or certain estates may require court approval of settlements, which can add steps before disbursement.
• The lawyer must honor only valid liens with proper notice; unresolved or disputed liens may require holding funds until resolved.

Talk to a Personal Injury Attorney

If you're dealing with how fees and costs will work in your North Carolina car accident claim, our firm has experienced attorneys who can help you understand your options and timelines. Reach out today. Call (919) 341-7055 or email intake@piercelaw.com.

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.