How does a contingency fee work in an injury claim against an apartment complex, and do I owe anything if the claim is denied?

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How does a contingency fee work in an injury claim against an apartment complex, and do I owe anything if the claim is denied? - North Carolina

Short Answer

In North Carolina, a contingency fee usually means your attorney’s fee is a percentage of the money recovered for you, and you typically do not pay that attorney’s fee if there is no recovery. However, you may still be responsible for certain case costs (like filing fees or medical record charges) depending on what your written fee agreement says. Before you sign, make sure the agreement clearly explains (1) the percentage, (2) what counts as “costs,” and (3) whether costs come out before or after the fee is calculated.

Understanding the Problem

In North Carolina, if you were hurt at an apartment complex and you are thinking about bringing a negligence claim while you are still treating, you may be asking: “If I sign a contingency fee agreement, do I pay the lawyer only if we win, and do I owe anything if the claim is denied?” Your question also matters because you may still be living at the property, and you want to understand what signing the agreement triggers and whether the landlord can try to evict you in response.

Apply the Law

In a typical North Carolina personal injury case, a contingency fee arrangement ties the attorney’s fee to the outcome: the fee is “contingent” on a recovery through settlement or judgment. The key is the written representation agreement you received. That contract usually separates (1) the attorney’s fee (the percentage) from (2) litigation costs and case expenses (the out-of-pocket items needed to investigate, document, and pursue the claim). If the claim is denied and there is no recovery, most contingency agreements do not require you to pay an attorney’s fee, but some agreements can still require repayment of costs that were advanced.

Key Requirements

  • A written fee agreement you can understand: The agreement should clearly state the contingency percentage, when it applies (settlement vs. lawsuit vs. appeal), and what happens if you end the relationship or change lawyers.
  • A clear definition of “costs” and “expenses”: Costs are usually third-party charges (records, reports, filing fees, service of process, depositions). Your agreement should spell out what items may be charged and whether the firm “advances” them.
  • How the math is done: The agreement should say whether costs are deducted before the contingency percentage is calculated or after (this can change the final numbers).
  • What you owe if there is no recovery: Many agreements say you owe no attorney’s fee if there is no recovery, but they may still address whether you reimburse costs that were incurred.
  • Timing and deadlines still apply even while you treat: Continuing medical treatment (with or without surgery) does not pause the civil filing deadline in most cases, so the agreement should not be read as a promise that “we can wait as long as we want.”
  • Retaliatory eviction protections exist: If you are still a tenant, North Carolina law can allow a tenant to raise retaliatory eviction as a defense in certain eviction cases when the eviction is substantially in response to protected tenant actions within the prior 12 months.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You were injured at an apartment complex and you are still treating. In that situation, a contingency fee agreement usually means the attorney’s fee is only owed if money is recovered, but the agreement may still address whether you reimburse case costs if the claim is denied. Because you received a representation agreement already, the most important next step is to confirm (in writing) how costs are handled and what “no recovery” means under that specific contract.

Process & Timing

  1. Who signs: You and the attorney. Where: Usually in the attorney’s office or electronically in North Carolina. What: A written contingency fee/representation agreement plus medical authorizations and intake forms. When: Ideally before the firm orders records, contacts insurers, or sends a demand.
  2. After signing: The firm typically opens the claim, sends a representation letter to the apartment complex/insurer, gathers incident information, requests medical records and bills, and tracks your treatment. If you are still treating, the firm may wait to make a settlement demand until your condition is clearer, but it should still monitor the statute of limitations.
  3. If the claim is denied: The firm evaluates whether more evidence can change the decision (for example, additional documentation, witness statements, or clearer proof of notice of a hazard). If the insurer still denies liability, the next step may be filing a lawsuit in the appropriate North Carolina trial court before the limitations deadline, or closing the file if the case is not viable under the facts and law.

Exceptions & Pitfalls

  • “No fee” does not always mean “no cost”: Some agreements say you owe no attorney’s fee if there is no recovery, but still require you to repay costs that were advanced. Ask for the exact sentence in the contract that answers this.
  • Costs deducted “before” vs. “after” the fee: Two agreements can use the same percentage but produce different results depending on whether costs come out first. Make sure the agreement states the calculation method plainly.
  • Ending representation early: If you switch lawyers or end the relationship, the agreement may address what happens to costs already incurred and how any later recovery is handled.
  • Medical treatment timing: Continuing treatment (even without surgery) can be medically appropriate, but waiting too long to investigate can make it harder to prove what happened (conditions change, witnesses disappear, video is overwritten).
  • Tenant retaliation concerns: If the landlord files a summary ejectment case and it is substantially in response to protected tenant activity within the prior 12 months, North Carolina law may allow a retaliatory eviction defense. But landlords can still evict for nonpayment of rent or other valid lease breaches, so keep your lease compliance and documentation organized.

Conclusion

In North Carolina, a contingency fee in an apartment-complex injury claim usually means you owe an attorney’s fee only if there is a recovery, but you may still owe certain case costs if your written agreement says you are responsible for them even when the claim is denied. The key legal timing issue is that many negligence-based injury claims must be filed within three years. Next step: review the fee agreement’s cost and “no recovery” language and get those terms clarified in writing before you proceed.

Talk to a Personal Injury Attorney

If you're dealing with an injury claim against an apartment complex and you want to understand contingency fees, case costs, and the timeline to protect your rights, our firm has experienced attorneys who can help you understand your options and deadlines. Call [CONTACT NUMBER] to discuss next steps.

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.

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