Many personal injury lawyers in Arkansas work on a contingency fee basis, meaning you pay nothing upfront and your attorney only gets paid if you recover compensation.
A common fee structure is one third of the recovery if the case settles before a lawsuit is filed, increasing to around 40% if it goes to trial.
Arkansas Rule of Professional Conduct 1.5 requires every contingency fee agreement to be in writing, and if your case does not result in a recovery, you generally owe no attorney fees, though you should confirm how case expenses are handled before signing.
Understanding how these fee arrangements work, what costs are separate from the attorney’s percentage, and what to look for in a fee agreement can help you make a confident decision when you are dealing with injuries and financial pressure after an accident.
How Does a Contingency Fee Arrangement Work in Arkansas?
A contingency fee arrangement means your personal injury lawyer agrees to represent you without charging anything upfront, and the attorney’s payment comes as a percentage of the money recovered in your case.
You do not pay hourly rates, retainers, or any out-of-pocket legal fees while your case is being handled. The attorney takes on the financial risk of pursuing your claim, and if the case does not result in a settlement or court award, you owe nothing for their legal services.
This structure exists because most people who are seriously injured in accidents cannot afford to pay a lawyer by the hour while also covering medical bills and lost wages.
A driver hit by a distracted motorist on Highway 7 near Russellville, for example, may be facing weeks without a paycheck and growing hospital bills.
Under a contingency fee arrangement, that driver can hire an attorney and begin building a third-party injury case without paying a single dollar out of pocket.
Shamieh Law founder Ramez Shamieh explains the arrangement in direct terms: “Very simply, I tell the client that they do not pay a single penny until the case settles. So if I don’t win you a case, you don’t pay me. Also, the medical bills, nothing comes out of pocket until the case settles, so there’s nothing to worry about. You have zero risk in hiring my firm because, again, you don’t pay me anything until the case settles.”
What Happens If You Lose Your Personal Injury Case?
If your case does not result in a recovery, you do not owe your attorney any legal fees under a contingency fee arrangement. The lawyer absorbs the cost of the time, research, and work they put into your case.
This is one of the main reasons contingency fees are the standard in personal injury law, because it means the attorney has a strong financial motivation to pursue every case with the goal of winning.
It is important to clarify the handling of case costs like filing fees, medical record requests, and similar expenses with your attorney before signing the agreement, because these may be treated differently from one firm to another.
Some firms will cover those costs and write them off if the case is unsuccessful, while others may require reimbursement of expenses even if there is no recovery. Ask about this directly before signing so there are no surprises.
Why Do Most Personal Injury Lawyers Use Contingency Fees?
Most personal injury attorneys work on contingency because it removes the financial barrier that would prevent many injured people from getting legal representation.
According to data from the Bureau of Justice Statistics, trials account for roughly 3% of tort case dispositions in state courts, meaning the vast majority of personal injury claims resolve before ever reaching a courtroom.
This means most cases are handled through negotiation, mediation, or other resolution methods, and the contingency model allows attorneys to take on cases while giving each client access to legal representation they could not otherwise afford.
Hourly legal fees for a personal injury case that takes months or years to resolve could add up to tens of thousands of dollars before the client sees any compensation. The contingency model eliminates that burden entirely.
A 2024 report by the TRIP national transportation research organization found that fatal and serious traffic crashes in Arkansas resulted in an estimated $18.2 billion in societal costs in 2023, including $4.5 billion in direct economic costs, which underscores how financially devastating these accidents can be for victims and their families.
What Percentage Do Personal Injury Lawyers Charge in Arkansas?
Personal injury lawyers in Arkansas typically charge 33.3% of the recovery if the case settles before a lawsuit is filed, and around 40% if the case requires filing a lawsuit or proceeding to trial.
There is no statutory cap on contingency fees for ordinary personal injury tort claims in Arkansas, but all fees must be “reasonable” under Arkansas Rule of Professional Conduct 1.5.
The percentage may also vary depending on the complexity of the case, the amount of investigation required, and the likelihood of going to trial.
How Do Pre-Litigation and Post-Filing Fee Structures Differ?
Pre-litigation fees are lower because cases that settle before a lawsuit is filed generally require less attorney time, fewer court filings, and less preparation.
When a case settles during this phase, the attorney typically takes one-third of the total recovery. This phase often involves gathering evidence, obtaining medical records, and negotiating directly with the insurance company.
Once a lawsuit is filed, the attorney’s workload increases significantly. The discovery process, depositions, motions, and trial preparation all require additional time and resources.
Because of this added work and risk, the fee typically increases to around 40% of the recovery. If the case goes to appeal, some fee agreements allow for an even higher percentage, though fees above 40% are less common and should be discussed and agreed upon before signing.
| Case Stage | Illustrative Fee Range | What Is Involved |
| Pre-litigation settlement | 33.3% (one-third) | Negotiation with the insurer before filing a lawsuit |
| Post-filing settlement | 35% to 40% | Lawsuit filed, discovery, depositions, settlement negotiations |
| Trial verdict | 40% | Full trial preparation and courtroom representation |
| Appeal | 40%+ (varies by agreement) | Appellate briefing and argument after a trial verdict |
These percentages are common across much of the personal injury legal field, and many Arkansas attorneys follow a similar tiered structure.
However, you can ask to negotiate fee terms, and you should understand exactly what percentage applies at each stage before you sign.
If a firm offers a different structure or charges a percentage outside these ranges, ask them to explain the reasoning so you can compare it against what other Arkansas attorneys charge for similar cases.
What Are Case Costs and How Are They Separate from Attorney Fees?
Case costs are the out-of-pocket expenses your attorney pays to build and pursue your claim, and they are separate from the contingency fee percentage.
These costs cover items like court filing fees, fees for obtaining medical records and police reports, payments to investigators or accident reconstruction professionals, deposition costs, and fees for serving legal documents.
Your attorney advances these costs during the case, and they are typically reimbursed from your settlement or verdict in addition to the attorney’s fee.
How Are Costs Deducted from Your Settlement?
How costs are deducted depends on your fee agreement, and the order of deduction can make a real difference in how much money you take home.
In many Arkansas personal injury cases, costs are deducted from the total settlement amount first, and then the attorney’s percentage is calculated from the remaining balance.
However, some agreements calculate the attorney’s percentage on the full amount first, and then deduct costs from the client’s share.
Here is a simplified example using a $100,000 settlement with $5,000 in case costs and a one-third attorney fee.
If costs are deducted first, the attorney’s fee is calculated on $95,000 (roughly $31,667), and you are left with approximately $63,333 before any medical liens, subrogation claims, or other deductions.
If the attorney’s fee is calculated first on the full $100,000 (roughly $33,333), then costs are subtracted from your share, leaving approximately $61,667 before those same deductions.
The difference may seem small on a $100,000 case, but on larger recoveries involving serious injuries, the method of deduction can mean thousands of dollars more or less in your pocket.
For cases that settle without filing a lawsuit, total costs are often modest.
The Arkansas State Police charges $10 per crash report for individuals involved in the accident, and medical record fees vary by provider, with Arkansas law allowing a $75 production fee for electronic records plus applicable postage.
Cases that go to trial involve higher costs, including circuit court filing fees of $165 in Pulaski County, deposition fees, and payments to professionals who may testify, which can collectively reach into the thousands.
Always ask your attorney to explain exactly how costs will be handled in your specific agreement.
What Does Arkansas Law Require in a Contingency Fee Agreement?
Arkansas Rule of Professional Conduct 1.5(c) requires that every contingency fee agreement be in writing and signed by the client.
The agreement must clearly state the method for calculating the attorney’s fee, the specific percentage the attorney will receive, how litigation costs and expenses will be handled, and whether the client will owe expenses regardless of the outcome.
Noncompliance with these requirements can create disciplinary and enforceability issues, though the Arkansas Supreme Court has recognized enforceability of an oral contingency agreement in limited circumstances involving a long-term attorney-client relationship where the terms were not in dispute.
Attorneys who fail to follow these rules also risk disciplinary action from the Arkansas Supreme Court’s Committee on Professional Conduct.
Rule 1.5 also prohibits contingency fees in certain types of cases.
Attorneys in Arkansas cannot charge a contingency fee in criminal defense cases or in domestic relations matters where the fee is contingent on obtaining a divorce or on the amount of alimony, support, or a property settlement.
The rule does allow contingency fees for collecting past-due amounts after a divorce decree, but the prohibition covers most initial family law proceedings. These restrictions exist because public policy concerns outweigh the benefits of contingency arrangements in those areas of law.
What Factors Determine If a Fee Is Reasonable in Arkansas?
Arkansas Rule of Professional Conduct 1.5(a) lists several factors that determine whether a fee is reasonable, including the time and labor required, the novelty and difficulty of the legal questions involved, and the skill needed to handle the case.
The rule also considers the customary fee charged in the locality for similar services, the amount of money involved in the case, and the results obtained.
The attorney’s experience, reputation, and ability are weighed as well, along with whether the fee is fixed or contingent on the outcome.
Whether a contingency fee is reasonable depends on the specific circumstances of the case, including the risk involved, the work required, and the customary fees charged in the locality for similar legal services.
There is no automatic safe harbor or cutoff percentage under the rule. Ask your attorney to explain why a particular percentage is being charged and how it compares to what other attorneys in Arkansas charge for similar cases.
In 2018, the Arkansas legislature referred a ballot measure known as Issue 1 that would have capped contingency fees at 33⅓% of the net recovery and imposed minimum $500,000 caps on noneconomic and punitive damages.
The Arkansas Supreme Court ruled 6-1 to remove Issue 1 from the ballot in Martin v. Humphrey, 2018 Ark. 295, finding that it violated the state constitution’s separate-issue requirement by combining unrelated provisions into a single measure.
As a result, Arkansas has no statutory cap on contingency fee percentages for personal injury tort claims, and the reasonableness standard under Rule 1.5 remains the governing framework for fee agreements in the state.
How Does Hiring a Lawyer on Contingency Affect What You Actually Recover?
Injured people who hire a personal injury attorney on contingency typically recover significantly more money than those who handle claims on their own, even after the attorney’s fee is deducted.
A 2017 Martindale-Nolo reader survey found that respondents with attorney representation reported an average personal injury compensation of $77,600, compared to an average of $17,600 for those who handled their claims without a lawyer.
While self-reported survey results do not prove that hiring a lawyer caused the difference in every case, the gap is consistent with broader patterns in the legal field.
These numbers reflect the reality that insurance companies generally treat represented and unrepresented claimants very differently.
An insurer negotiating with an individual who has no legal representation knows that person is unlikely to file a lawsuit, unlikely to understand the full value of their claim, and more likely to accept a low offer under financial pressure.
Even after accounting for a one-third contingency fee, the survey data suggests represented claimants still take home significantly more than those without legal counsel.
Why Do Insurance Companies Offer Lower Settlements to Unrepresented Claimants?
Insurance companies may use several tactics to reduce the value of claims from unrepresented individuals in Arkansas, and understanding these tactics helps explain why contingency fee representation is worth the cost.
One common approach is rushing a settlement offer before the full extent of injuries is known. An adjuster may contact an accident victim within days and offer a check that covers immediate medical bills but ignores future treatment, lost earning capacity, and pain and suffering.
Unrepresented claimants are more likely to accept an early offer that does not reflect the full value of their claim, particularly when they are under financial pressure from medical bills and lost income.
A second tactic involves requesting recorded statements shortly after the accident. Adjusters frame this as a routine step, but the goal is to get the injured person to say something on the record that can be used to minimize or deny the claim later.
Statements made while a person is still in pain, on medication, or confused about the details of the crash can be taken out of context and used against them during negotiations.
A third tactic targets Arkansas’s comparative fault system under Arkansas Code § 16-64-122. Insurance companies look for any evidence that the injured person shares some blame for the accident under the state’s comparative fault rules.
They may monitor social media profiles for posts or photos that suggest the person is more active than their injury claim indicates, or they may use minor traffic violations to argue the claimant was partially at fault.
Under Arkansas law, a claimant found to be 50% or more at fault loses the right to recover any damages, which gives insurers a strong incentive to inflate the claimant’s share of fault.
How Has Arkansas’s New Collateral Source Law Affected Personal Injury Recoveries?
In 2025, Governor Sarah Huckabee Sanders signed HB 1204 into law as Act 28, which changed how medical expenses are calculated in Arkansas personal injury cases.
Under the previous collateral source rule, juries could consider the full amount billed for medical treatment, regardless of what the insurance company actually paid.
Under Arkansas Code § 16-64-120(b), the new law limits recoverable past medical damages to the amounts actually paid by or on behalf of the plaintiff, plus any unpaid amounts for which the plaintiff or a third party remains legally responsible.
Billed charges that a provider or insurer has agreed to write off are no longer recoverable, which in many cases significantly reduces the medical damages presented to a jury.
This change directly affects the total recovery in a personal injury case, which in turn affects the amount available for both the attorney’s contingency fee and the client’s share.
For example, if a hospital bills $50,000 for treatment but the insurance company negotiated a payment of $15,000 that fully satisfies the bill, the old rule allowed the full $50,000 to be presented to a jury as part of the damages.
Under the new law, only the $15,000 actually paid may be used, because no unpaid balance remains for which anyone is legally responsible.
This makes it more important than ever to work with an attorney who understands why your medical bills and insurance records matter and how to document the full impact of your injuries.
The collateral source change does not directly alter the categories of compensation for pain and suffering, lost wages, or future medical needs, though the overall case value may be affected.
In June 2026, the Arkansas Supreme Court also adopted Evidence Rule 412, which restricts the evidence that can be used to establish the reasonable value of past medical services, further reinforcing these changes.
A thorough case built around the complete picture of your losses can still result in meaningful recovery, and having a lawyer who takes the time to build a complete damages case matters more than worrying about the contingency fee percentage alone.
What Questions Should You Ask Before Signing a Contingency Fee Agreement?
Asking the right questions before you sign a fee agreement is one of the most important steps you can take to protect your financial interests after an injury.
A straightforward conversation with your attorney about the terms of the agreement can prevent misunderstandings later and help you feel confident about the arrangement. The time you spend asking questions upfront can save you stress and confusion down the road.
Start by asking what the fee percentage is at each stage of the case. Confirm whether the rate changes if the case moves from pre-litigation negotiation to a filed lawsuit, and again if it goes to trial or appeal.
You should also ask how case costs will be handled: whether they will be deducted before or after the attorney’s percentage is calculated, and whether you will owe anything for costs if the case is unsuccessful.
Ask about communication expectations during the case. Find out how often you will receive updates on your case and who your primary point of contact will be.
You should also ask about the attorney’s track record with cases similar to yours, including how many cases they have taken to trial versus settling, and what kinds of results they have achieved for their clients.
It is also important to understand the Arkansas statute of limitations for your type of case so you do not miss the deadline to file.
Consider a scenario where a driver is rear-ended by a commercial truck on I-40 near North Little Rock. The driver’s medical bills are mounting, and she is unsure whether to sign with the first attorney she meets.
By asking clear questions about fee percentages, cost deductions, and the attorney’s approach to her type of case, she can make an informed choice that protects both her case and her financial recovery.
Ready to Talk to an Arkansas Personal Injury Attorney About Your Case?
Finding out that you do not have to pay a lawyer upfront is often the first step toward getting the help you need after a serious injury. Contingency fee arrangements exist so that every injured person in Arkansas has access to legal representation, regardless of their financial situation.
As personal injury attorneys in Arkansas, Shamieh Law has recovered over $300 million for injured clients and their families.
If you have been hurt in an accident and want to understand your legal options, contact our team today by calling 501-361-1334. The consultation is free, and you will not pay anything unless we win your case.
Frequently Asked Questions
Do Personal Injury Lawyers in Arkansas Charge Upfront Fees?
Personal injury lawyers in Arkansas who work on contingency do not charge any upfront fees, retainers, or hourly rates. The attorney’s fee comes from a percentage of your settlement or court award. If the case does not result in a recovery, you generally owe no attorney fees, though your agreement should clarify how case expenses are handled. This arrangement is common across Arkansas and is governed by Arkansas Rule of Professional Conduct 1.5.
What Is the Typical Contingency Fee Percentage in Arkansas?
A common contingency fee in Arkansas is one-third of the recovery if the case settles before a lawsuit is filed, increasing to around 40% if the case goes to trial. These percentages are common across the personal injury field and may vary by firm and case complexity. Arkansas has no statutory cap on contingency fees for ordinary personal injury tort claims, but all fees must be reasonable under Rule 1.5.
Are Case Expenses Included in the Contingency Fee?
Case expenses such as court filing fees, medical record requests, and deposition costs are separate from the contingency fee percentage. Your attorney advances these costs, and they are typically reimbursed from your settlement. Ask whether expenses are deducted before or after the attorney’s percentage is calculated, because the order of deduction directly affects how much you take home.
Can You Negotiate the Contingency Fee Percentage with Your Lawyer?
You can ask to negotiate contingency fee percentages in Arkansas, though a lawyer is not required to agree to a reduction. While one-third pre-litigation and 40% at trial are common, some attorneys may adjust their rates depending on case strength, damages involved, or legal complexity. Discuss fees openly before signing the agreement, and make sure you understand what percentage applies at each stage of the case.
How Does Arkansas’s Comparative Fault Law Affect Your Settlement?
Under Arkansas Code § 16-64-122, your settlement may be reduced by the percentage of fault assigned to you. If you are 20% at fault, your recovery drops by 20%. If you are found 50% or more at fault, you lose the right to recover any damages. This makes it critical to have an attorney who can counter attempts to inflate your share of blame.
What Should You Do If an Insurance Company Offers a Settlement Before You Hire a Lawyer?
Be cautious about accepting any settlement offer before speaking with an attorney. Insurance companies may rush early offers before the full extent of injuries is known. Once you sign a release and accept a settlement, you generally cannot pursue additional compensation even if injuries worsen. A free consultation with a personal injury attorney can help you understand whether an offer reflects the true value of your claim and how long after a car accident you can claim injury in Arkansas.