Q: Why did my attorney get more of my personal injury settlement than me?

A: In Michigan, contingent fee agreements need to be in writing and will outline how fees are calculated and what 'out of pocket' costs are recoverable by the attorney. My guess is that your case didn't settle for a lot of money and that the costs created the discrepancy that you are concerned about, but I can't say for sure without knowing more about the situation. The answer to your question should be contained in your fee agreement and other documents provided by your attorney at the conclusion of your case.

In Michigan, attorney's fees in a contingent personal injury case are calculated on the "net" settlement (per the Court Rules). Therefore, if you case settles for $10,000 and there are $1,500 in costs, the math would be: $10,000 - $1,500 = $8500 ($8500 is the net). The attorney would receive 1/3 of the net plus their costs ($2,833.33 + $1,500.00 = $4,333.33) and you would receive the balance of $5,666.67. If the case settled for less than that, or the costs were more, you could possibly receive less than the attorney did.

Also, note that in Michigan, "[u]pon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement of the outcome of the matter and, if there is a recovery, show the remittance to the client and the method of its determination. "

You should have received a statement detailing what was withheld from the settlement as attorney fees and costs. I line item all costs for my clients (for my clients records, but also, for my own). To avoid the problem you are having, I also like to get this information to my client before the matter settles so my clients know what they are actually going to receive from the settlement before they sign off on the settlement agreement.

If you have questions about how your settlement payment was calculated, you should contact your attorney and ask them - it should be a easy question for them to answer.

A: I'm sorry about your frustration with the results of your case. There are a few common things to look at - terms of your retainer, out-of-pocket expenses, etc. You ask about considerations that could result in a reduction. A common one is liens, where a medical office may want money back if they advanced the costs of their treatments. Another could be subrogation claims from an insurance carrier that wants its money (or a reduced portion of its money to reflect post-tax benefits) at the conclusion of a case. These are only a couple of general considerations. Your attorney could advise best on the breakdown of expenses on the file. Good luck