Percentage Fee: Of What?

What is Basis for Lawyer’s Fee? The lawyer’s fee in a personal injury case is, as I am sure you already know, based on a percentage of the amount recovered for the client, but some people want to know if this percentage is applied to the total amount of the settlement, or only to the amount to be received by the client after payment of medical bills. It is true that medical bills, including those paid by health insurance, usually have to be paid back, either partly or in full depending on the type of health insurance plan, when there is a settlement of a personal injury claim. The lawyer’s fee, however, is a percentage of the total amount of the settlement, so the medical repayments must be taken out of the remaining portion due to the client. The rationale here is that the efforts of the lawyer have been successful in relieving the client of the obligation to pay back these bills, so the client has benefitted in that sense, and the lawyer is entitled to be compensated for his or her work.