What to Know Before Signing a Personal Injury Retainer Agreement

After an accident, you may be eager to get legal representation as quickly as possible. That urgency is understandable — insurance companies move fast, evidence disappears, and statutes of limitations don't wait. But before you sign a retainer agreement with any personal injury attorney, you need to understand exactly what you're agreeing to.

A retainer agreement is a contract between you and your attorney. It defines the scope of representation, how the attorney gets paid, what expenses you may be responsible for, and the terms under which either party can end the relationship. Getting this right at the beginning prevents misunderstandings and protects your interests throughout the case.

How Contingency Fee Arrangements Work

Most personal injury attorneys in Texas work on a contingency fee basis. This means you don't pay attorney fees upfront. Instead, the attorney receives a percentage of your settlement or verdict. If you don't recover anything, you don't owe attorney fees. Learn more about things to consider when choosing a lawyer.

A standard contingency fee in Texas typically ranges from 33% to 40%, depending on whether the case settles before litigation or goes to trial. The retainer agreement should clearly spell out these percentages at each stage. Learn more about how long it takes to settle a personal injury claim.

There are a few critical details to look for in any contingency fee arrangement. First, you should understand whether the attorney's fee is calculated before or after case expenses are deducted. This distinction can significantly affect your net recovery. Second, check whether the fee percentage changes if the case goes to trial or appeal — most agreements include a higher percentage at those stages because of the additional work involved.

Case Expenses vs. Attorney Fees

Attorney fees and case expenses are two different things, and your retainer agreement should distinguish between them clearly. Case expenses include things like medical record retrieval fees, expert witness costs, court filing fees, deposition costs, and investigator fees.

Some firms advance these costs and deduct them from your settlement. Others may ask you to pay expenses as they arise. You need to know which model your attorney uses before signing. The retainer should also address what happens to those expenses if the case is unsuccessful — are you still responsible for them, or does the firm absorb the loss?

What the Agreement Should Cover

A well-drafted retainer agreement should address several key areas. The scope of representation tells you exactly what legal matter the attorney is handling. If you were in a car accident, the retainer might cover your personal injury claim but not a separate property damage dispute. Make sure the scope matches your understanding.

The agreement should include a clear communication policy — how often the attorney will update you, the preferred method of communication, and who on the legal team you should contact with questions. It should also outline the circumstances under which either you or the attorney can terminate the relationship, and what happens to any fees or expenses already incurred if that happens.

Red Flags to Watch For

Not all retainer agreements are created equal. Be cautious if you encounter any of the following. An agreement that gives the attorney authority to settle your case without your approval is a problem — you should always have final say over whether to accept a settlement offer. Vague language around expenses or fees that could allow unexpected charges should also raise concern.

If the attorney is unwilling to walk through the retainer agreement with you line by line, that's a signal worth paying attention to. A good attorney wants you to understand the terms because informed clients make better partners in litigation.

Questions to Ask Before Signing

Before you put pen to paper, ask your potential attorney a few direct questions. What is the contingency fee percentage, and does it change at different stages of the case? How are expenses handled, and what happens to them if we lose? Will you personally handle my case, or will it be assigned to another attorney? How often will I receive updates, and who is my point of contact?

The answers to these questions — and the attorney's willingness to answer them transparently — tell you a great deal about the kind of representation you can expect.

The Bottom Line

A retainer agreement is more than a formality. It's the foundation of the attorney-client relationship. Take the time to read it carefully, ask questions, and make sure you're comfortable with every provision before signing. The right attorney will welcome that diligence, not rush you past it.

If you have questions about a retainer agreement you've been asked to sign — or if you're looking for a personal injury attorney in Dallas who prioritizes transparency — contact Bennett Legal for a free consultation. We'll walk you through every term so you know exactly what to expect.