Short Answer

In most North Carolina personal injury cases, a contingency fee means you generally do not pay the attorney’s fee up front; the fee is paid only if money is recovered through a settlement or a court result. However, you may still be responsible for “case costs” (like medical records fees or filing fees), depending on what the agreement says and how the firm handles expenses. Before you sign, make sure you understand (1) whether costs are deducted before or after the fee is calculated and (2) what happens if there is no recovery.

Understanding the Problem

In North Carolina, when you are the injured person considering signing a contingency fee agreement after a recent accident, the key question is whether you must pay anything now to hire the lawyer or whether payment happens only if the claim results in a settlement or a win. Because you have not yet provided documents or received a clear evaluation, it is especially important to understand what you are agreeing to before you sign.

Apply the Law

Under North Carolina practice, a “contingency fee” arrangement usually means the attorney’s fee is contingent on a recovery—meaning the attorney gets paid a percentage (or other agreed amount) only if the case produces money through settlement or judgment. Even when the attorney’s fee is contingent, the agreement often addresses litigation and claim expenses (commonly called “costs”), including who pays them, when they are paid, and whether they come out of the recovery.

In a personal injury claim, the main “forum” is often an insurance claim at first, and if the case must be filed, it proceeds in North Carolina state court (typically the Superior Court or District Court depending on the case). The fee agreement should also explain what happens if you end the relationship early or if the firm declines to proceed after investigating.

Key Requirements

• Fee is tied to recovery: The agreement should clearly state that the attorney’s fee is owed only if money is recovered (and how the fee is calculated).
• Costs/expenses are addressed: The agreement should explain what “costs” are, whether the firm advances them, and whether you must repay them if there is no recovery.
• How the fee is calculated: The agreement should state the percentage (or method), and whether it changes if a lawsuit is filed or the case goes further.
• When deductions happen: The agreement should say whether costs are deducted before the fee is calculated or after (this can change your net amount).
• Scope of representation: It should define what the lawyer is hired to do (for example, injury claim only, or also related property damage, liens, or appeals).
• Ending the relationship: It should explain what happens if you switch lawyers or terminate the agreement before the case ends.

What the Statutes Say

• N.C. Gen. Stat. § 84-38 (Solicitation of retainer or contract for legal services prohibited; division of fees) - Regulates improper solicitation and certain fee-splitting arrangements; it is part of the broader rules that shape how fee contracts are obtained and handled.
• N.C. Gen. Stat. § 114-9.5 (Contingency fees in certain State agency contracts) - Sets limits for contingency fee contracts involving State agencies; it does not control most private personal injury fee agreements, but it shows North Carolina’s approach to defining contingency fees and separating fees from costs/expenses.

Analysis

Apply the Rule to the Facts: Because you were sent a contingency fee agreement before you have provided documents or received a clear evaluation, the safest approach is to treat the agreement as the controlling “rulebook” for what you may owe. In most contingency arrangements, you do not pay the attorney’s fee up front, but the agreement may still require you to reimburse case costs (either as the case goes or from any recovery). Your key task is to confirm, in writing, whether costs are your responsibility if there is no settlement or win and how the fee is calculated.

Process & Timing

1. Who signs: The client and the attorney. Where: Usually electronically or in the firm’s office in North Carolina. What: A written contingency fee agreement (and often separate medical authorization forms so records can be ordered). When: Typically before the firm begins substantial work or communicates with insurers on your behalf.
2. Investigation phase: The firm usually gathers basic documents (incident report, photos, medical records/bills, wage information) and evaluates liability and damages. This is often when costs start to arise (record fees, postage, retrieval charges), so the agreement’s “costs” section matters early.
3. Resolution and disbursement: If the case settles or results in a judgment, the settlement statement typically shows the gross recovery, the attorney’s fee, case costs, and any other required payments (for example, medical liens if applicable), followed by the net amount to you.

Exceptions & Pitfalls

• “No fee” does not always mean “no cost”: Many clients hear “no fee unless we win” and assume they will never owe anything. Some agreements still make the client responsible for costs if there is no recovery, while others do not. You must read that clause carefully.
• Costs deducted before vs. after the fee: Two agreements can use the same percentage but produce different net results depending on whether costs come out first or later. If the agreement is unclear, ask for a written explanation.
• Flat-fee option confusion: A flat fee usually means you pay a set amount for defined work, regardless of outcome. That can be appropriate for limited tasks (for example, a demand package or a specific negotiation step), but it is not the same as a contingency arrangement.
• Signing before you understand the scope: If the agreement does not clearly say what the lawyer will handle (injury claim only vs. also property damage, liens, or related claims), you can end up surprised later.
• Switching lawyers mid-case: If you change attorneys, the prior attorney may claim a right to be paid for work already done from any later recovery. The agreement should explain how that is handled.

Conclusion

In North Carolina, a contingency fee agreement usually means you do not pay the attorney’s fee up front and the fee is owed only if your case results in a settlement or a win. But you may still be responsible for case costs, and the agreement should clearly explain whether costs come out before or after the fee and what happens if there is no recovery. Your next step is to request a written breakdown of the fee percentage and the costs clause before you sign.

Talk to a Personal Injury Attorney

If you’re dealing with a recent injury and were asked to sign a contingency fee agreement before you have a clear case evaluation, our firm has experienced attorneys who can help you understand the fee terms, costs, and timelines. Reach out today. Call [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.