Short Answer

In North Carolina, a “flat fee” usually means you pay one set attorney fee for a defined piece of work, instead of paying a percentage of your recovery (a contingency fee). A flat fee can make sense for limited, predictable tasks—like reviewing a claim, sending a demand package, or advising you on whether to accept a settlement—especially before a lawyer can fully evaluate the case. Whether any money is due up front depends on what the agreement says and what work the flat fee covers.

Understanding the Problem

If you were recently in an accident in North Carolina and you have been asked to sign a contingency fee agreement before you have provided documents or received a clear case evaluation, it is reasonable to ask: “Do I have to pay anything now, and what does a flat-fee option mean for what the lawyer will (and will not) do?”

Apply the Law

North Carolina law allows different ways to pay a lawyer, including contingency fees (a percentage of what is recovered) and flat fees (a set amount for a defined scope of work). The key is that the fee arrangement should be clear, in writing, and describe what happens with case costs (like medical records charges, filing fees, and deposition costs) and how those costs affect what you receive at the end. In an accident claim, the main “forum” is usually an insurance claim process first; if the claim does not resolve, a lawsuit is typically filed in North Carolina state court (Superior Court) in the proper county.

Key Requirements

• Clear scope of work: A flat fee should spell out exactly what the lawyer is agreeing to do (for example, “review documents and give written advice,” or “prepare and send a demand”) and what is not included (for example, “filing a lawsuit” or “trial”).
• Clear fee trigger: The agreement should say when the fee is earned (for example, upon completion of a task) and whether any portion is refundable if the representation ends early.
• Costs and expenses explained: Accident cases often involve out-of-pocket costs. The agreement should state who pays them, whether the lawyer advances them, and whether they are deducted before or after any attorney fee.
• Contingency vs. flat fee distinction: A contingency fee is typically tied to the outcome (recovery). A flat fee is typically tied to the work performed, regardless of outcome.
• Written agreement and closing statement: If the lawyer is paid from a recovery, you should expect a written breakdown at the end showing the recovery amount, the fee, and the costs deducted.

What the Statutes Say

• N.C. Gen. Stat. § 114-9.3 (Definitions for certain contingency fee contracts) - Defines “contingency fee contract” in a specific context (State agencies), illustrating that contingency arrangements are recognized and defined under North Carolina law.
• N.C. Gen. Stat. § 114-9.5 (Contingency fees for certain State agency contracts) - Sets limits for contingency fees in a specific government-contract setting (not typical private injury cases), but it highlights that contingency fees and costs/expenses are treated as separate concepts.

Analysis

Apply the Rule to the Facts: Here, the key issue is that you have not yet provided documents or received a clear evaluation, but you were sent a contingency fee agreement to sign. That is exactly the situation where a flat-fee option may be offered for a limited “first phase” of work—such as collecting basic information, reviewing available records, and giving an initial recommendation—before either side commits to a full contingency arrangement. Whether you pay anything up front depends on the contract terms and whether the flat fee is for a defined task that starts immediately.

Process & Timing

1. Who signs: You and the attorney. Where: Usually outside of court (it is a private contract). What: A written fee agreement that states whether it is a contingency fee, a flat fee, or a limited-scope flat fee for specific tasks. When: Before the lawyer begins work or as soon as practical after the lawyer agrees to take on the matter.
2. Early work phase: In a flat-fee “case review” or “demand” phase, the lawyer typically gathers key facts, identifies missing documents, and explains strengths/weaknesses and next steps. Timeframes vary depending on how quickly records can be obtained.
3. Decision point: After the initial work is complete, you may choose to (a) stop, (b) continue under another flat-fee phase, or (c) switch to a contingency fee for full representation through settlement negotiations and, if needed, litigation.

Exceptions & Pitfalls

• “Flat fee” does not always mean “everything included”: A common misunderstanding is assuming a flat fee covers the entire case through settlement or trial. Many flat fees cover only a narrow task (like a demand letter) and stop there unless you sign a new agreement.
• Costs can still be separate: Even with a flat fee, you may still be responsible for third-party costs (records, reports, filing fees). Ask whether the lawyer advances costs, whether you reimburse them monthly, and how reimbursement works if the case ends early.
• Contingency agreements can differ on cost deductions: Some agreements calculate the percentage fee first and then subtract costs; others subtract costs first and then calculate the percentage. That difference can change what you receive, so you should ask for a simple example using round numbers.
• Limited scope must be clear: If the flat fee is for limited-scope representation, make sure the agreement clearly states what the lawyer will not do (for example, communicating with insurers beyond a defined point, filing suit, or attending hearings).
• Signing before evaluation: If you sign a full contingency agreement before the lawyer reviews basic documents, you may feel “locked in” even if you later learn the case is not a good fit. You can ask whether the firm offers a short, defined flat-fee review first.

Conclusion

In North Carolina, a “flat fee” option generally means a set attorney fee for a specific, defined task in your accident claim, rather than a percentage of any recovery. It most often applies early—when the lawyer needs to review documents, assess liability and damages, or complete a limited step like a demand—before committing to full contingency representation. Your next step is to ask for a written explanation of the scope (what is included and excluded) and how costs and expenses will be handled before you sign.

Talk to a Personal Injury Attorney

If you are dealing with an accident claim and you were asked to sign a fee agreement before you understand how fees and costs work, a personal injury attorney can help you compare a contingency fee to a flat-fee option and clarify what you would owe, when, and for what work. 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.