# Fee agreement

> A fee agreement is the written contract that hires a lawyer: the work covered, how the fee is worked out and who pays case costs. What to check first.

Canonical page: https://accidentclaimfacts.com/glossary/fee-agreement/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

A fee agreement is the written contract that hires a lawyer. It says what work the lawyer will do, how the fee is worked out and who pays the costs of the case. In injury cases, it is usually a contingency fee agreement.

## In a car accident claim

Under the ABA's model rule, the scope of the work and the basis of the fee must be explained to you, preferably in writing, before or soon after the work starts. For a contingent fee, the agreement must state the percentage the lawyer takes if the case settles, goes to trial or is appealed, the expenses to be deducted, and whether they come out before or after the fee. States add their own rules. In Texas, a contingent fee contract must be in writing and signed by the attorney and client. In Florida, the client must also receive a signed Statement of Client's Rights for Contingency Fees and can cancel the contract within 3 business days without owing a fee.

Key points to check: the percentage at each stage, whether case costs come out before or after the fee, what you owe if the case is lost, and whether the agreement covers the car damage claim and any appeal. Many agreements also say how the lawyer is paid if you change lawyers. Our guide to [fee agreements](https://accidentclaimfacts.com/choosing-a-lawyer/fee-agreements/) explains what each part must say, [contingency fees](https://accidentclaimfacts.com/money/contingency-fees/) shows the math, and [questions to ask a lawyer](https://accidentclaimfacts.com/choosing-a-lawyer/questions-to-ask-a-lawyer/) helps before signing.

## Example

> **Example:** Before signing, a client reads a fee agreement and sees that it covers the injury claim but not the car damage claim or an appeal. The client asks how costs are handled if the case is lost, gets the answer added in writing, and keeps a copy signed by both sides.

## Related terms

- [Contingency fee](https://accidentclaimfacts.com/glossary/contingency-fee/)
- [Case costs](https://accidentclaimfacts.com/glossary/case-costs/)
- [Closing statement](https://accidentclaimfacts.com/glossary/closing-statement/)
- [Substitution of counsel](https://accidentclaimfacts.com/glossary/substitution-of-counsel/)

## FAQ

### Should I get a copy of my fee agreement?

Yes. Some states require it. In California, for example, the client must receive a duplicate copy signed by both you and the lawyer when the contract is made.

### Can I negotiate a lawyer's fee agreement?

Often, yes. In California, every contingency fee contract outside medical malpractice must state that the fee is not set by law but is negotiable. Other states have no such notice, but terms can still be discussed before signing.

## Sources

- [American Bar Association, Model Rules of Professional Conduct, Rule 1.5: Fees](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/) — paragraphs (b) and (c)
- [State Bar of California, California Rules of Professional Conduct and the State Bar Act](https://www.calbar.ca.gov/sites/default/files/2025-09/Publication-250-Volume-1.pdf) — Business and Professions Code § 6147
- [The Florida Bar, Rules Regulating The Florida Bar, Chapter 4](https://www-media.floridabar.org/uploads/2026/10/2027_04-OCT-Chapter-4-RRTFB.pdf) — Rule 4-1.5(f) and the Statement of Client's Rights for Contingency Fees
- [Texas Legislature, Government Code § 82.065(a)](https://statutes.capitol.texas.gov/Docs/GV/htm/GV.82.htm), checked October 29, 2026