Short Answer

In North Carolina, a contingency-fee engagement agreement must be in writing and signed, and it must explain how the fee is calculated and how case expenses are handled. Before you sign, read it line by line, confirm the fee percentage, when expenses are deducted, how medical payments coverage is handled, and your duties. Ask questions until you are comfortable, then sign and keep a copy. Act promptly because injury claims have strict filing deadlines.

Understanding the Problem

You want to know exactly how to review and sign a North Carolina personal injury engagement agreement so your attorney can start your claim. You are the injured person; the task is to review and sign the attorney-client contract on a contingency basis. Timing matters because your car crash happened nearly two years ago, and the filing deadline for injury claims can be strict.

Apply the Law

North Carolina requires contingency-fee agreements to be in a signed writing that states the method for calculating the fee and who pays expenses. The agreement should also define the scope of the lawyer’s work, your responsibilities, and what happens at the end of the case (for example, a final accounting). Medical provider liens and how settlement funds are distributed are governed by state law, so the agreement should explain how liens and costs will be paid from any recovery. While this is a contract between you and the law firm, you should also confirm the statute of limitations for your claim before signing so the firm can timely act.

Key Requirements

• Written and signed agreement: The fee contract must be in writing and signed by you before the lawyer begins work.
• Clear fee terms: It must state the contingency percentage and whether case expenses are deducted before or after the fee is calculated.
• Scope of representation: It should spell out what the lawyer will do (claim setup, negotiations, filing suit if needed) and any limits.
• Expenses and liens: It should explain responsibility for costs, how medical liens are handled, and how settlement money will be distributed.
• Med Pay handling: If you have medical payments coverage, the agreement should explain any fee related to those benefits and authorizations to pursue them.
• Your duties and communication: Expect terms about truthfully sharing information, preserving evidence, responding to requests, and who can authorize settlement.

What the Statutes Say

• North Carolina Rule 1.5 (Fees) - Requires contingency fees to be in a signed writing that explains the fee method and expenses, with a final written statement at the end.
• N.C. Gen. Stat. § 44-49 (Medical provider liens) - Allows certain medical providers to assert liens on personal injury recoveries when proper notice is given.
• N.C. Gen. Stat. § 44-50 (Distribution of settlement) - Limits the total of medical liens and requires attorneys to disburse funds in a specific order.
• N.C. Gen. Stat. § 1-52 (Limitations—three years for many injury claims) - Sets general three-year deadlines for many tort claims; specific applications vary by claim type.

Analysis

Apply the Rule to the Facts: Because your crash was nearly two years ago, confirm in the agreement that the firm will identify and track the statute of limitations and promptly open your claim. The contract is contingency-based, so verify the percentage and whether expenses come off the top or after the fee, and that any fee for Med Pay applies only if coverage exists. Since next steps involve gathering information and paperwork, the agreement should include your consent to request records and contact insurers so the claim can start immediately.

Process & Timing

1. Who files: You sign the engagement agreement. Where: At the firm or via secure e-signature. What: Engagement agreement plus authorizations (e.g., medical records release) and disclosures about fees, expenses, and liens. When: Before the firm contacts insurers or files any lawsuit; ask the firm to calendar your filing deadline immediately.
2. After signing, the firm countersigns, opens your file, and sends letters of representation to liability and Med Pay carriers, then requests records and bills. This often begins within days, but timelines vary by insurer and provider.
3. You receive a fully executed copy of the agreement and periodic updates. At the end of the case, the firm provides a written settlement statement showing the fee, expenses, lien payments, and your net disbursement.

Exceptions & Pitfalls

• Not confirming when expenses are deducted (before vs. after the fee) can change your net recovery.
• Overlooking lien language: medical liens and health plan claims must be addressed according to North Carolina law before you are paid.
• Assuming Med Pay exists: only authorize and agree to any Med Pay-related fee if your policy actually has that coverage.
• Unclear settlement authority: make sure the agreement states who can accept offers and how consent is documented.
• Waiting to sign: delays can risk your filing deadline; minors and government-related claims may have different rules, so timing is critical.
• Not getting a copy: keep a signed copy of the agreement and the firm’s contact information for your records.

Talk to a Personal Injury Attorney

If you're getting ready to sign a personal injury engagement agreement and want clear terms and timelines, our firm can walk you through each step and get your claim moving. Reach out today at (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.