Short Answer

In North Carolina, most car accident personal injury attorneys are paid through a contingency fee, meaning the attorney’s fee is a percentage of the money recovered for you (by settlement or judgment). If there is no recovery, the attorney typically does not collect an attorney fee, but you still need to understand how case costs and other deductions are handled. The exact percentage and whether costs come out before or after the fee should be clearly stated in a written fee agreement.

Understanding the Problem

If you are in North Carolina and a law firm contacted you after learning you may have been in a car accident, a common next question is: “If I hire a personal injury attorney, how do they get paid?” The key decision point is whether you can hire the attorney on a contingency fee (paid from the recovery) and what you would still owe if the case does not resolve in your favor.

Apply the Law

For most North Carolina car accident injury claims, attorneys are paid based on a private fee contract between the client and the lawyer. The most common arrangement is a contingency fee, where the attorney’s fee depends on the outcome and is paid from the settlement check or court award. Even in contingency cases, clients should pay close attention to “case costs” (like filing fees and record charges) and to other deductions that may be paid from the recovery (such as medical liens or health insurance reimbursement claims), because those items can affect what you actually take home.

Key Requirements

• Written fee agreement: The fee arrangement should be put in writing so you can see the percentage, what counts as a “recovery,” and how costs are handled.
• Clear definition of costs and expenses: The agreement should explain what case costs are, who advances them, and whether they are deducted before or after the attorney fee is calculated.
• Contingency fee percentage and triggers: The agreement should state the percentage and whether it changes if a lawsuit is filed or if the case goes to trial or appeal.
• Settlement distribution terms: The agreement should explain how the settlement check is deposited and how funds are disbursed (attorney fee, costs, liens, and the client’s net share).
• No improper solicitation or “runners”: North Carolina law restricts solicitation of legal business and paying for referrals; if a firm contacted you because of an accident, you can ask how they got your information and whether anyone is being paid to steer cases.

What the Statutes Say

• N.C. Gen. Stat. § 84-38 (Solicitation of legal business; fee splitting) - Prohibits certain solicitation practices and improper fee-splitting arrangements tied to getting legal cases.
• N.C. Gen. Stat. § 6-21.1 (Attorneys’ fees as costs in certain small-damage cases) - Allows a judge, in limited situations and with specific findings, to award attorneys’ fees as part of court costs in certain personal injury/property damage cases.

Analysis

Apply the Rule to the Facts: Because a law firm contacted you after receiving information that you may have been in a car accident, the first practical issue is not just the percentage they charge—it is whether they will give you a clear written fee agreement that explains the contingency fee, case costs, and deductions. You should also feel comfortable asking how they learned about the accident and confirming that no one is being paid to “steer” your case. Your decision should be based on the written terms and your comfort with how the firm will handle costs and settlement distribution.

Process & Timing

1. Who signs: You (the client) and the attorney. Where: The attorney’s office (or electronically) in North Carolina. What: A written contingency fee agreement and related intake/authorization forms. When: Before the attorney begins substantive work or communicates with insurers on your behalf.
2. During the case: The attorney investigates, gathers records, and negotiates with the insurance company. Costs may be advanced as the case progresses (for example, ordering records), depending on the agreement.
3. At settlement or judgment: The settlement funds are typically deposited into a lawyer trust account, then disbursed under a written settlement statement showing (1) attorney fee, (2) reimbursed costs, (3) lien/reimbursement payments if applicable, and (4) your net amount.

Exceptions & Pitfalls

• Costs can still matter even if there is no recovery: Some agreements make the client responsible for certain costs even if the case does not resolve successfully. Do not assume “no fee” means “no cost.”
• Percentage is not the whole story: Two firms can quote the same percentage but handle costs, liens, and settlement distribution differently, which can change your net recovery.
• Liens and reimbursement claims: Medical providers or health insurers may assert repayment rights from a settlement. If these are not addressed carefully, they can delay settlement distribution or create disputes after you get paid.
• Uncomfortable solicitation: If you feel pressured because the firm contacted you first, slow down. Ask how they got your information and whether anyone is being paid for the referral; North Carolina restricts solicitation and improper fee-splitting.
• Fee disputes and unclear paperwork: If the agreement does not clearly explain the fee, costs, and when the percentage applies, ask for revisions or get a second opinion before signing.

Conclusion

In North Carolina, a personal injury attorney in a car accident case is most often paid through a contingency fee—an agreed percentage of the money recovered for you—rather than upfront hourly billing. The most important details are in the written fee agreement: the percentage, how case costs are handled, and what deductions may come out of the recovery before you receive your share. Next step: request a written contingency fee agreement and review it carefully before you sign.

Talk to a Personal Injury Attorney

If you’re dealing with a car accident claim and want to understand how contingency fees, case costs, and settlement deductions work in North Carolina, our firm has experienced attorneys who can help you understand your options and timelines. Reach out today at [CONTACT NUMBER].

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.