What Should I Check Before Signing a Contract With a Lawyer?

You’ve done your research, you’ve had a free consultation, and you’ve found a car accident lawyer in the Tacoma area who you trust to handle your case. They have now presented you with a multi-page document to sign. This contract—officially known as a Fee Agreement or Representation Agreement—is the legally binding document that establishes your attorney-client relationship.

It can be tempting to just skim it and sign on the last page, especially when you’re eager to get the process started. But you must resist this temptation. This contract governs every aspect of your professional relationship, from how your lawyer gets paid to what happens if you disagree.

Reading and fully understanding this document is not just a formality; it is an essential step in protecting your own interests. Before you sign, you must know exactly what you are agreeing to. This guide will break down the key sections you need to check.

Useful Information for You: In a Nutshell

• Read the Entire Document: Do not just skim it. This is a binding legal contract. Read every single word and ask questions about anything you don’t understand.
• Confirm the Contingency Fee Percentage: The agreement must clearly state the percentage the lawyer will take (e.g., 33.3%). Check if this percentage changes if a lawsuit is filed.
• Understand How Case Costs are Handled: This is critical. The contract must explain how costs (like filing fees and expert fees) are paid and whether they are deducted from the settlement before or after the attorney’s fee is calculated.
• Clarify the Scope of Representation: The agreement should clearly define what legal services the attorney is (and is not) providing.
• Ask Questions Before You Sign: If any part of the agreement is unclear, do not sign it. Ask the attorney to explain it to you in plain English until you are completely comfortable.

Key Section 1: The Contingency Fee Calculation

This is the heart of the agreement. Since personal injury lawyers work on a contingency fee basis, the contract must spell out the details precisely. Look for:

• The Percentage: The agreement must state the exact percentage the lawyer will receive from any settlement or verdict. The standard in Washington is often 33.3% (one-third).
• Escalating Percentages: Many agreements include a clause that increases the percentage to around 40% if a formal lawsuit has to be filed and litigation begins. This is a standard practice, but you need to be aware of it.

Key Section 2: The Handling of Case Costs

This is the most frequently misunderstood part of a fee agreement. The “fee” is the lawyer’s payment for their work. “Costs” are the out-of-pocket expenses needed to pursue your case. The agreement must state:

• Who pays for costs upfront? Reputable firms will almost always “advance” these costs, meaning they pay for them on your behalf and are reimbursed later. You should be wary of any firm that asks you to pay for costs as they arise.
• How are costs deducted? This is a crucial financial detail. Costs can be deducted from the total settlement before the attorney’s fee is calculated, or after. This can make a significant difference in the net amount of money you receive. Ask for a sample calculation so you understand exactly how it works.

Key Section 3: The Scope of Representation

The contract should clearly define what the lawyer is being hired to do. For example, it will likely state that they are representing you for your “personal injury claim arising from the motor vehicle accident of [Date].” It’s also important to see what is not included. For example, the agreement will likely state that it does not cover a related traffic ticket or a separate property damage dispute unless specified.

Key Section 4: The Process for Ending the Relationship

The agreement should also outline what happens if you decide to fire your lawyer, or if they decide to withdraw from your case. It will typically explain how any outstanding fees and costs will be handled in that scenario.

Your Final Check: Don’t Be Afraid to Ask

A good lawyer wants you to be an informed client. They should be happy to sit down with you and go through the fee agreement line by line, answering any questions you have. If a lawyer seems rushed or dismissive of your questions about their contract, that is a major red flag.

The fee agreement is the foundation of your partnership with your attorney. By understanding it fully before you sign, you can ensure a transparent and trusting relationship from day one.

If you are in the process of choosing a legal advocate in the Tacoma area, search the Car Accident Lawyer Directory Tacoma. Once you’ve used our directory to find a potential attorney and had your free consultation, be sure to apply the principles in this guide when you review their fee agreement.

References

• Washington State Bar Association (WSBA) – RPC 1.5 – Fees:The official Rules of Professional Conduct that govern how Washington lawyers must handle their fees. It specifically requires that all contingency fee agreements be in writing and signed by the client.

  https://www.wsba.org/for-legal-professionals/rules-of-professional-conduct/rpc-1-5

• American Bar Association (ABA) – “How to Read a Lawyer’s Bill”:A consumer guide from the ABA that explains different fee structures and the importance of a clear, written fee agreement.

  https://www.americanbar.org/groups/public_education/resources/law_related_education_network/how_courts_work/lawyers_bills/