How our contingency fee works for Las Vegas injury cases after Nevada’s AB404 changes

Nevada’s recent medical malpractice law AB404 has many injured Nevadans asking how contingency fees, costs and medical liens really work in a Las Vegas personal injury case. This explainer walks through the percentages, the order of deductions and your potential responsibility for costs so you can ask better questions before you sign a fee agreement.

Why Nevada’s AB404 has people asking about contingency fees and costs

Nevada’s 2023 law AB404 reshaped some rules in medical malpractice cases, including how long patients may have to bring certain claims and how noneconomic damage caps will phase in over time. Any time the Legislature changes the ground rules, people understandably start asking harder questions about the financial side of hiring a Las Vegas personal injury law firm. One of the first topics is usually contingency fees, and how those fees interact with court costs, litigation expenses and medical liens.

A contingency fee can make it possible for an injured person or grieving family to pursue a case without paying an hourly rate up front. At the same time, you are entitled to a clear written explanation of what percentage applies, when it applies, how long it lasts and who is responsible for different categories of costs. Nevada Rules of Professional Conduct require that contingency fee agreements be in writing and that the method of calculating the fee be spelled out, including what happens if the lawyer or the client ends the relationship before the case is over. Those rules apply across injury cases, not just in medical malpractice.

You should also understand that a contingency fee does not erase the risk of litigation. Even if a lawyer does not collect an attorney fee when there is no recovery, you may still be responsible for case costs, and in some situations a court may order the losing party to pay part of the opposing side’s attorney fees and costs. That is why reading the fee agreement closely, and asking questions until you are comfortable, matters just as much as understanding Nevada statutes like NRS 11.190 (general limitation periods) or NRS 41A.097 (medical malpractice timing rules).

Litigators for Justice is a Las Vegas personal injury law firm that practices primarily in personal injury. Our contingency fee structure is described in a written retainer agreement that we review with every client. This article explains, in general terms, how that kind of agreement typically works, how the percentages relate to different stages of a case and how costs and medical liens are handled. It is not legal advice about your specific situation and cannot replace a one on one consultation with a Nevada lawyer.

• AB404 changed several timing and damage cap rules in Nevada medical malpractice cases.
• Contingency fee agreements in Nevada must be in writing and explain how the percentage is calculated.
• Injury victims should ask how fees, costs and liens are handled before signing.
• Even with a contingency fee, courts can sometimes order the losing party to pay the other side's fees and costs.

What a contingency fee means in a Las Vegas personal injury case

In a typical Nevada personal injury matter, a contingency fee means the attorney fee is a percentage of any money recovered by settlement or judgment. If there is no recovery, the attorney fee itself is not charged. This structure is intended to align the client’s interests with the firm’s and to make it possible to bring a claim without paying by the hour. It is important to remember, however, that a contingency fee only governs the attorney fee. It does not automatically cancel out court filing fees, expert witness charges, record retrieval fees or other litigation expenses.

At Litigators for Justice, our standard written agreement for most non medical malpractice personal injury cases generally sets the contingency fee at 33 1/3 percent of the gross recovery if the case is resolved before a lawsuit is filed. If the case requires filing a complaint in court, the agreed percentage is typically higher and remains in effect for the life of the litigated case, including trial and any post trial motions. If an appeal is necessary, the agreement may provide for a different percentage or a separate agreement for appellate work, which is explained before that stage begins.

For medical malpractice cases in Nevada, we must comply both with the general Rules of Professional Conduct and with specific statutes, including NRS Chapter 41A and the changes implemented by AB404. That means any contingency fee in a med mal case is reviewed against the statute and discussed in advance, in writing, so you understand what percentage applies and under which circumstances. Because AB404 altered the framework for these cases over a period of years, it is especially important that your agreement spell out how the fee will operate over time.

Every mention of contingency fees or a no fee unless there is a recovery must also be understood in light of the risk of litigation. You may have to pay the opposing parties' attorney fees and costs in the event of a loss, and the client may be responsible for advanced litigation costs and court costs. A Nevada judge can, under certain statutes and court rules, award fees or costs to the prevailing party in specific situations, such as when an offer of judgment is rejected and the final result is less favorable than the offer, or when a claim is brought or defended without reasonable grounds under NRS 18.010.

• The attorney fee is a percentage of the gross recovery, not an hourly rate.
• The percentage can change if a lawsuit is filed or the case goes to trial.
• Medical malpractice cases have additional Nevada statutory requirements, including NRS Chapter 41A and AB404.
• You may still be responsible for costs and possibly the other side's fees if you lose.

How our contingency fee percentages and time periods are structured

Before you sign with a Las Vegas personal injury law firm, you should know exactly what percentages apply and how long they remain in effect. At Litigators for Justice, our standard written retainer agreement for most non medical malpractice injury matters uses a tiered contingency fee that depends on how far the case progresses. While the exact language is in the agreement you review and sign, the structure can be explained in general terms in percentages and stages.

For most motor vehicle collision, premises liability and other non med mal cases, the initial contingency fee is generally 33 1/3 percent of the gross recovery if the case is resolved before we file a complaint in Nevada state or federal court. This percentage usually covers the pre litigation stage, including investigation, records gathering, settlement negotiations and, when appropriate, a formal demand package to the insurer. If the case is settled and funds are collected during this period, that one third percentage is applied, subject to the deductions for costs and liens described below.

If it becomes necessary to file a lawsuit, participate in formal discovery, take depositions or prepare for trial, the contingent fee percentage set out in our agreement generally increases from that point forward. A common structure is a fee of 40 percent of the gross recovery once a lawsuit is filed and through trial. That increased percentage reflects the significant time, risk and out of pocket expense that litigation requires, including paying experts, scheduling depositions and preparing for hearings and trial. The agreement explains when, exactly, the higher percentage takes effect and confirms that it remains in place for the life of the litigated case unless otherwise agreed in writing.

Medical malpractice cases are handled under a separate section of the retainer that complies with NRS Chapter 41A and the developments under AB404. Any percentage for those claims is described clearly, with an explanation of how long it is in effect and any conditions that might change it. Regardless of the case type, the written agreement also explains how the fee is handled if the attorney client relationship ends before the case is resolved, which is required under the Nevada Rules of Professional Conduct. At every stage, the client is encouraged to ask for clarification, and no one is pressured to sign on the spot.

• Pre litigation personal injury cases typically carry a 33 1/3 percent contingency fee on the gross recovery.
• Once a lawsuit is filed, the contingency fee is generally higher, often 40 percent, for the rest of the case.
• Medical malpractice cases have a separate fee section tailored to NRS Chapter 41A and AB404.
• The agreement explains what happens to fees if representation ends before the case concludes.

How case costs, advanced expenses and medical liens are handled

Attorney fees and case costs are different categories, and it is important not to mix them together. The contingency percentage applies to the gross recovery for attorney fees only. Separate from that, there are out of pocket expenses such as court filing fees, process server charges, expert witness invoices, medical record fees and deposition transcripts. At Litigators for Justice, the written agreement explains that the firm may advance reasonable court costs and litigation expenses on the client’s behalf. Those advanced costs are then reimbursed from any recovery before the client receives a distribution.

If there is a settlement or judgment, the usual order of operations is: first, the gross recovery arrives in the client trust account. Second, case costs and litigation expenses that were advanced are reimbursed from that recovery. Third, the agreed contingency fee percentage is applied to the gross recovery, often after deduction of costs if that is how the agreement is written. Fourth, any valid medical liens, health insurance reimbursement claims or other payback obligations are paid from the remaining funds. Only after those steps are complete is the client’s net distribution issued. The exact sequence, such as whether the fee is calculated before or after costs, is specified in the written fee agreement.

Medical liens can arise when a hospital, physician, chiropractor or other provider is unpaid or agrees to wait for payment out of any future settlement. Health insurers and certain government programs may also have reimbursement rights when they have paid for injury related care. Our role is to identify those lienholders, request itemized statements and ensure that valid liens are addressed before disbursing net funds. We may attempt to negotiate with medical providers and lienholders when appropriate, but no reduction is guaranteed and every creditor ultimately decides whether to adjust its own bill.

If the case does not result in any recovery, the contingency fee itself is not charged under our standard agreement, but the client may be responsible for advanced litigation costs and court costs. You may also have to pay the opposing parties' attorney fees and costs in the event of a loss if a court so orders. These possibilities are another reason to make sure you understand how costs and liens work at the beginning, not at the end when the check arrives or a judgment is entered.

• Case costs include filing fees, process service, experts, records and transcripts.
• The firm may advance reasonable court costs and litigation expenses, subject to reimbursement.
• Attorney fees are a percentage of the recovery, separate from costs and liens.
• We may attempt to negotiate with lienholders, but no reduction is promised or guaranteed.

How Nevada deadlines, AB404 and your responsibilities fit together

Understanding fees and costs only matters if your claim is brought within the legal time limits. Nevada generally gives injured people two years to file most personal injury lawsuits, which appears in NRS 11.190(4)(e). There are important exceptions, including for some claims against governmental entities and for medical malpractice, where NRS 41A.097 sets specific time frames tied to when the alleged negligence occurred and when the injury was or should have been recognized. AB404 adjusted some of the rules and caps in the medical malpractice setting, so patients should not assume older online information is still accurate.

Your responsibilities as a client include being truthful about the facts, providing documents reasonably requested, keeping contact information current and reading the contingency fee agreement carefully. It is appropriate to ask for time to review the document, to have terms explained again in plain language and to compare what you are reading with Nevada’s requirements in the Rules of Professional Conduct. The agreement should tell you in writing what the percentages are, how long they apply, how costs are handled, what happens with liens and what occurs if either side ends the relationship before the case is over.

Remember that a contingency fee does not mean no risk. Even where a lawyer advances court costs and litigation expenses, the client may be responsible for advanced litigation costs and court costs if there is no recovery, and in some situations a court may require the losing side to pay a portion of the other side’s attorney fees and costs. Nevada statutes like NRS 18.010 and NRS 17.115, and procedural rules on offers of judgment, can all affect when courts award fees and costs. These are topics you should feel comfortable asking about during a consultation.

Litigators for Justice offers a free confidential consultation, available 24 hours a day. During that meeting, you can ask detailed questions about contingency fees, costs, liens, deadlines and how recent Nevada legal changes, including AB404, might affect the type of claim you are considering. This article is intended as general information about how a Las Vegas personal injury firm may structure fees and costs. It is not legal advice and does not create an attorney client relationship.

1. Request a written copy of any proposed contingency fee agreement and read it carefully from beginning to end before signing.
2. Write down questions about percentages, costs, liens and what happens if you decide to change lawyers, then ask them during your consultation.
3. Confirm in writing whether the contingency fee percentage increases if a lawsuit is filed and at exactly what point that change occurs.
4. Ask the firm to explain, step by step, the order in which money is distributed from any future settlement or judgment, including costs, fees and lien payments.
5. Gather your key documents, such as medical records, bills, accident reports and health insurance information, so potential liens and reimbursement rights can be identified early.
6. Discuss Nevada’s filing deadlines, including NRS 11.190 and, for potential medical malpractice, NRS 41A.097, to avoid missing your opportunity to file.
7. Clarify who will pay court filing fees, expert costs and other litigation expenses as the case moves forward, and how you will be notified about large expenses.
8. Schedule a free confidential consultation with a Las Vegas personal injury law firm like Litigators for Justice to talk through whether a contingency fee arrangement fits your situation.
9. Keep a folder or digital file with all correspondence about fees and costs so you can refer back to the exact terms if questions come up later.
10. If something in the agreement does not make sense, ask for it to be explained in plain language and do not sign until you feel comfortable with your obligations.

Frequently asked questions

What does a contingency fee really mean in a Nevada injury case?

A contingency fee in a Nevada personal injury case means the attorney fee is a set percentage of any money recovered by settlement or judgment. If there is no recovery, the attorney fee itself is not collected. You may still be responsible for court costs and litigation expenses, and a court can sometimes order the losing party to pay some of the other side’s fees and costs. These details must be explained in a written agreement under the Nevada Rules of Professional Conduct.

How much percentage do Las Vegas injury lawyers usually charge and how long does it last?

Many Nevada personal injury firms use a one third contingency fee if the case settles before a lawsuit is filed, then a higher percentage, often around 40 percent, if a lawsuit or trial is required. At Litigators for Justice, our written retainer explains the exact percentages and the point in the case when they change. The percentage that applies after filing generally remains in effect for the entire litigated case unless a new written agreement is made. You should not rely on averages and should instead read the specific agreement you are offered.

Do I have to pay case costs and court fees if we lose my Nevada injury case?

Under a typical contingency agreement, the attorney fee is not charged if there is no recovery, but the client may still be responsible for advanced litigation costs and court costs. These can include filing fees, expert witness charges and other expenses paid to third parties. In addition, you may have to pay the opposing parties' attorney fees and costs in the event of a loss if a Nevada court orders it under statutes like NRS 18.010 or offer of judgment rules. Your agreement should spell out your obligations concerning costs in clear language.

How are medical liens and health insurance paybacks handled after a settlement?

When a settlement comes in, the funds usually go into a client trust account and are then used to pay case costs, attorney fees and valid medical liens or reimbursement claims in a set order. Hospitals, doctors and insurers may all claim a right to be paid from the injury recovery for care they provided. A Las Vegas personal injury law firm like Litigators for Justice identifies these claims and works to confirm the amounts. We may attempt to negotiate with lienholders for a reduction, but no discount can be promised and each creditor controls its own decisions.

How did Nevada’s AB404 change things for medical malpractice fees and deadlines?

AB404 changed several aspects of Nevada medical malpractice law, including a gradual adjustment of the cap on noneconomic damages and certain timing rules that interact with NRS 41A.097. While the statute does not rewrite all fee arrangements, it affects how med mal cases are evaluated and litigated, which in turn influences contingency fee structures. Any fee for a med mal claim must still comply with the Nevada Rules of Professional Conduct and be explained in a written agreement. If you have a potential med mal claim, you should ask directly how AB404 and NRS Chapter 41A might affect your case and fee.

How long do I have to start a Nevada injury claim before it is too late?

For many personal injury cases in Nevada, such as car collisions or slip and fall incidents, the general time limit to file a lawsuit is two years from the date of injury, found in NRS 11.190(4)(e). Medical malpractice and some other claims have different rules, including a combination of outer limits and discovery related deadlines under NRS 41A.097. Claims against governmental entities can involve additional notice requirements and shorter timelines. Because missing a deadline can end your claim entirely, it is wise to talk with a Nevada lawyer as soon as possible after an injury.

Is this article legal advice about my specific Nevada accident or medical malpractice case?

No. This article is general information about how contingency fees, costs and liens often work in Nevada personal injury and medical malpractice matters, including in light of AB404. It cannot account for the facts of your situation, your insurance policies or all applicable statutes and rules. To get legal advice tailored to your circumstances, you need to consult directly with a Nevada lawyer and review a written fee agreement before making decisions.