What Is a Contingency Fee?

A contingency fee means your lawyer doesn’t get paid unless you win. Instead of billing by the hour, your attorney takes a percentage of your settlement or court award. This approach makes legal help accessible to people who might not afford it otherwise.

What Kinds of Cases Can’t Be Taken on a Contingency?

Under Arkansas Rules of Professional Conduct (Rule 1.5), contingency fees are prohibited in:

1. Criminal defense cases

2. Family law matters involving divorce or child custody

If any attorney offers you a contingency fee for one of those cases—walk away. It’s unethical and violates Arkansas Bar standards.

What Percentage Do Most Lawyers Take?

The standard contingency fee for a personal injury lawyer in Arkansas is usually:

• 33.3% (one-third) if the case settles before filing a lawsuit

• 40% or more if the case goes to trial or requires an appeal

These percentages may vary slightly by firm, and some agreements use a tiered structure, where the fee increases depending on how far the case progresses.

What’s the Most a Lawyer Can Take?

There is no specific maximum under Arkansas law, but all fees must be “reasonable” under Rule 1.5. In most personal injury cases, anything over 40% should raise a red flag—especially if the lawyer didn’t warn you in advance.

Example: How Much Will You Keep?

If you're hurt in an accident in Arkansas and win a settlement, you may be surprised at how much goes toward legal fees. That's why it's important to understand how contingency fees work and what percentage of your settlement will actually end up in your pocket.

At Ludwig Law Firm, our personal injury attorneys believe in transparency from day one. You deserve to know exactly what you’re paying, why you’re paying it, and how much you’ll keep.

What to Look for in a Fee Agreement

Before signing with a personal injury lawyer in Arkansas, make sure the contract:

• Specifies the percentage clearly

• States whether expenses are taken out before or after the fee

• Gives you a copy of the agreement

We go over this in detail during your free consultation—and answer every question before you commit.

Why Trusted Partnerships Matter

We don’t guess: we prep every case like it’s going to trial. We also often team up with well-respected firms like Warden Law Firm, known for their courtroom firepower and bold litigation tactics. When a client needs both finesse and firepower, a Ludwig and Warden partnership is the best option. Together, we give clients the full spectrum of legal support in Arkansas.

Get Clear, Fair Representation

If you’ve been injured and want to know exactly what you’ll take home, call Ludwig Law Firm at 501-838-4043 or visit ludwiglawfirm.com. We’ll break down your options and never surprise you with fees.

📞 Call Ludwig Law Firm today at 501-838-4043
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📍 Proudly serving clients across Arkansas

Disclaimer: The information provided in this blog is for general informational purposes only and is not intended as legal advice. Reading this blog or interacting with Ludwig Law Firm through this content does not create an attorney-client relationship. Every legal case is different, and you should not act or rely on any information in this blog without first consulting with a licensed attorney about your specific situation. For legal guidance tailored to your needs, please contact Ludwig Law Firm directly.

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