Winning a settlement does not mean the injured person receives the entire amount shown on the settlement agreement. Attorney fees, case expenses, medical bills and insurance liens may all be paid before the client receives the remaining money. For people considering Morgan & Morgan, the most important question is not only how much the firm recovers, but how much will remain after every deduction.
Morgan & Morgan generally handles personal injury cases on a contingency-fee basis. This means clients normally do not pay an hourly attorney fee or an upfront retainer. Instead, the firm receives an agreed percentage of the settlement or court award when it successfully recovers compensation.
What Percentage Does Morgan & Morgan Take?
Morgan & Morgan does not advertise one universal fee percentage that applies to every client and every case. Its public guidance states that personal injury contingency fees commonly range from approximately 33% to 40% of the total recovery. One-third, or about 33.33%, is a frequently used rate.
The exact percentage may depend on:
- The type of legal claim;
- The state where the case is handled;
- Whether the matter settles before a lawsuit;
- Whether formal litigation becomes necessary;
- Whether the case proceeds to trial or appeal; and
- The terms of the client’s written fee agreement.
A case resolved through an early insurance settlement may involve less work than one requiring depositions, expert witnesses, court motions and a trial. Some contingency agreements therefore provide for a lower percentage before litigation and a higher percentage after a lawsuit is filed.
Example of a Morgan & Morgan Settlement Fee
Suppose Morgan & Morgan obtains a settlement of $100,000.
With a 33.33% contingency fee, the attorney fee would be approximately $33,333. That would leave about $66,667 before subtracting case expenses, unpaid medical bills or insurance liens.
With a 40% fee, the attorney fee would be $40,000, leaving $60,000 before the remaining deductions.
Therefore, saying that a case settled for $100,000 does not necessarily mean the client receives $60,000 or $66,667. The final payment depends on all expenses and obligations connected with the claim.
Are Case Expenses Included in the Percentage?
Attorney fees and case expenses are not always the same thing.
The percentage compensates the law firm for its legal services. Case expenses may include charges for:
- Medical records;
- Police and accident reports;
- Court filing fees;
- Expert witnesses;
- Depositions and transcripts;
- Investigators;
- Accident reconstruction;
- Medical examinations; and
- Travel connected with litigation.
Morgan & Morgan states that it works on a contingency basis with no upfront fees and receives payment when it successfully obtains compensation. However, clients should read the contract to understand exactly how advanced expenses will be handled.
The agreement should explain whether expenses are deducted before or after the attorney’s percentage is calculated. This detail can change the amount the client receives. American Bar Association rules state that a contingency agreement should identify the applicable percentages, litigation expenses and whether expenses are deducted before or after calculating the fee.
What Else May Be Deducted From the Settlement?
Medical bills and liens can substantially reduce the client’s net settlement.
A hospital, doctor, health insurer, Medicare, Medicaid or workers’ compensation carrier may have a right to reimbursement from the recovery. These payments are separate from Morgan & Morgan’s attorney fee.
For example, assume a client receives a $100,000 settlement with a $33,333 attorney fee, $5,000 in litigation expenses and $15,000 in medical liens. The client’s estimated net recovery would be:
$100,000 − $33,333 − $5,000 − $15,000 = $46,667
The exact calculation may differ because lawyers sometimes negotiate medical bills or liens before distributing the settlement.
Does Morgan & Morgan Get Paid If the Case Loses?
Morgan & Morgan promotes its services using the phrase “The Fee Is Free,” meaning the firm generally receives its attorney fee only when it wins or obtains a successful recovery.
However, clients should not rely only on an advertisement. The signed representation agreement should state whether the client could remain responsible for any expenses if the case produces no recovery.
Before signing, ask directly:
- What percentage applies if the case settles early?
- Does the percentage increase after filing a lawsuit?
- Are expenses deducted before or after the attorney fee?
- Will I owe expenses if the case is unsuccessful?
- How will medical liens be handled?
Do All Cases Use the Same Fee Range?
No. Workers’ compensation attorney fees may be restricted by state law and can be lower than ordinary personal injury percentages. Morgan & Morgan states that workers’ compensation fees may range from about 10% to 33%, depending on the state and claim.
Class-action fees may require court approval, while medical-malpractice claims can be subject to state fee limits. Employment, disability and benefits cases may also follow different statutory rules.
The Bottom Line
Morgan & Morgan commonly describes personal injury contingency fees in the range of roughly 33% to 40%, although there is no single percentage for every settlement. The actual fee is determined by the written agreement, case type, state law and stage at which the case is resolved.
Clients should also account for litigation expenses and medical liens. Before hiring the firm, request a clear written explanation showing how the fee will be calculated and what deductions will be made from the final settlement.
