You were told it’s one-third. “No fee unless we win.” Simple, right? Then somewhere down the road the check arrives and somehow one-third became 12% of what you expected to walk away with. The rest evaporated into line items you never saw coming — case costs, liens, subrogation, a “litigation expense” here, a “file administration fee” there. By the time the math settles, the firm took 33%, the hospital took 28%, and you took what was left.

This is not a scam. Most of it is legal, disclosed somewhere in the retainer, and standard practice across Michigan PI work. But “disclosed” and “explained” are two very different things, and the three firms pitching you this week are counting on you not asking the second question.

If you were hurt two or three weeks ago and you have a stack of retainer agreements on your kitchen table, read this before you sign any of them.

Gross Settlement vs. Net to You

Every contingency fee in Michigan is calculated off one of two numbers: the gross settlement (the full check the insurance company cuts) or the net settlement (what’s left after case costs are deducted). This single word — gross or net — is the difference between thousands of dollars in your pocket or the firm’s.

Here is the same $100,000 settlement under both structures, assuming $8,000 in case costs and a one-third fee:

Fee on gross: - Gross settlement: $100,000 - Attorney fee (33.33% of gross): $33,333 - Case costs: $8,000 - Subtotal to you: $58,667

Fee on net: - Gross settlement: $100,000 - Case costs (off the top): $8,000 - Net: $92,000 - Attorney fee (33.33% of net): $30,667 - Subtotal to you: $61,333

That’s a $2,666 swing on a mid-size case for one word in the retainer. On a $500,000 case, the same language costs you over $13,000. Michigan doesn’t mandate either structure — MRPC 1.5 only requires the fee be “reasonable” and that contingency agreements be in writing, signed, and state the method of calculation. Which method is up to the firm. Which means it’s up to you to read.

Ask directly: “Is your fee calculated on the gross recovery or on the net after costs?” If the answer is gross, ask if they’ll switch it. Some will. Some won’t. Both answers tell you something.

Case Costs: The Line Items That Come Out of Your Share

Case costs are the expenses the firm advances to build your case, and under virtually every Michigan PI retainer, you reimburse them at the end — win or lose (though most firms waive them on losses as a practical matter). These are separate from the attorney fee. Typical costs on a moderate auto case:

That last line is where retainers get creative. A flat “administrative fee” or “technology fee” tacked on at settlement is not a real cost — it’s margin disguised as a cost. MRPC 1.5(c) requires the retainer to spell out “expenses to be deducted from the recovery.” If you see a vague category you don’t recognize, ask what’s in it. If the answer is hand-wavy, that’s your answer.

Ask for a sample closing statement from a past case (redacted). A firm that won’t show you what the math looks like at the end is a firm that doesn’t want you doing the math at the end.

Tiered Fees: 33 / 40 / 45

Most Michigan PI retainers use a tiered structure:

This is standard and, frankly, fair — trial work is exponentially more labor-intensive than sending a demand letter. But watch the trigger language. Some retainers jump to 40% the moment the firm “prepares” a complaint, whether or not it’s filed. Some jump to 45% at the mediation stage, not at trial. One retainer we’ve reviewed recently escalated to 40% after “substantive negotiations,” which is undefined and basically means “whenever we decide.”

You want the triggers tied to objective, filed-on-the-docket events: complaint filed with the court, trial commenced, notice of appeal filed. Not “prepared,” not “substantive,” not “in our professional judgment.”

Medical Liens and Subrogation: The Other Hand in the Pot

Here’s where most clients get blindsided. Your attorney’s fee isn’t the only thing coming out of the settlement. In Michigan:

A good firm negotiates these down — often by 33–50%. A mediocre firm pays them at face value and pockets the difference in time. Before you sign, ask: “Do you negotiate medical liens, and what’s your typical reduction?” If they say “we pay what’s owed,” you’re leaving money on the table that belongs to you.

The Realistic Net: A $100,000 Case, Start to Finish

Let’s run the whole breakdown on a $100,000 auto settlement, case filed in Wayne County Circuit, resolved at mediation:

That’s 35% of the gross. Not 67%. This isn’t a worst-case scenario — it’s a realistic one. And it’s the number that should be in your head when a firm tells you “we only take a third.”

Retainer Clauses You Can Negotiate

Before you sign, these are worth pushing back on:

  1. Fee on net, not gross. Ask for it. Worst they can say is no.
  2. Hard-defined tier triggers. “Complaint filed” and “trial commenced,” not “prepared” or “substantive.”
  3. Right to lien reduction work. The retainer should explicitly say the firm negotiates medical liens on your behalf.
  4. Cap on “administrative” costs. Or strike the clause entirely.
  5. Right to a closing statement. In writing. Itemized. Before disbursement, not after.
  6. Withdrawal clause. If the firm drops your case, do you owe costs? For what work? Read it.

Michigan firms know which of these are standard asks. If they flinch at all six, you’ve learned something. If they walk you through each one, you’ve learned something better.

Fire My Lawyer is a second-opinion and referral service for Michigan personal injury clients — we are not a litigation firm, and we don’t take your case. What we do: review the retainer you’re about to sign (or already signed), run the math against comparable cases, and — if your situation warrants it — match you with a vetted attorney from our Client Care Advantage™ network who’ll give you a straight answer about what your case is actually worth, net. Call 1-855-FML-2DAY (1-855-365-2329) or visit FireMyLawyer.com. Read the paperwork before you sign it. That’s the whole job.