Why is My Lawyer Getting More Money than Me?

If you’ve recently settled a case and walked away with less than you expected while your attorney collected a substantial fee, and got more money than you, you’re not alone in asking: Why is my lawyer getting more money than me? The answer depends on your fee agreement, the type of case, and how costs were handled.

There are a few reasons this can happen:

• Contingency fee percentage was higher than standard (33% – 40% is typical; anything beyond that warrants scrutiny)
• Case expenses and litigation costs were deducted from your share, not the attorney’s and your fee contract with the attorney does not clearly disclose that fact
• You weren’t told how fees and costs would be calculated before signing
• Settlement funds were distributed without a transparent, itemized accounting

Any one of these alone may simply be an uncomfortable reality of how legal fees work. But it also may be legal malpractice. When your attorney or your fee contract fails to explain the fee structure, misrepresents how funds will be distributed, or takes more than what your agreement allows, they may have crossed a line — and you may deserve justice.

If something about your settlement doesn’t add up, you deserve a straight answer. Ross Sears II is a legal malpractice attorney in Houston who has built his career holding attorneys accountable when they fail their clients. He can tell you quickly whether what happened to you is enough to warrant a legal malpractice claim. Go to our website at Searscrawford.com and fill out our client intake information sheet for the quickest response, or call (713) 223-3333 today for a confidential consultation.

The contingency fee percentage was higher than standard

The standard contingency fee in most personal injury cases falls between 33% and 40% of the total settlement. Although some attorneys occasionally charge more. If your attorney took a higher percentage without a clear justification or your informed consent, or they took more money from your settlement than you received, that is something worth examining closely.

A fee that exceeds what is reasonable under the circumstances may constitute unreasonable attorney fees under Texas bar rules. Attorneys are generally ethically obligated to charge fees that are proportionate to the work performed and the outcome achieved.

When this becomes legal malpractice: If your attorney charged a fee percentage that was never disclosed, was not agreed upon in writing, or significantly exceeded what is reasonable given the complexity of your case, that conduct may rise to the level of legal malpractice.

Litigation costs were deducted from your share

Many clients are surprised to learn that litigation costs such as filing fees, expert witness fees, and deposition expenses are often subtracted from the client’s portion of the settlement rather than the attorney’s fee. This is legal when disclosed upfront and agreed upon in writing.

A proper fee agreement should clearly outline who bears these costs and when they are collected. If yours did not, you may have grounds to challenge those deductions.

When this becomes legal malpractice: When an attorney deducts litigation costs that were never disclosed in the fee agreement, or inflates those costs beyond what was actually spent, that crosses from standard practice into potential malpractice and a breach of fiduciary duty.

You weren’t informed how fees would be calculated

Transparency is not optional in the attorney-client relationship. Your lawyer is required to explain how their fee will be calculated, whether based on a gross settlement amount or the net amount after costs are deducted, and such MUST be in writing if they are charging you a contingency fee.

This lack of disclosure is a recognized type of legal malpractice that can leave clients blindsided at the end of their case. If you never received a clear written explanation of how your attorney’s fee or expenses would be determined, that is a red flag worth investigating.

When this becomes legal malpractice: If your attorney never provided a written fee agreement, failed to explain how fees would be calculated before your case concluded, or changed the fee structure without your knowledge or consent, you may have a viable malpractice claim.

Your settlement wasn’t distributed with a clear accounting

When a settlement is reached, your attorney is required to provide you with a written disbursement statement before any funds are distributed. This document should show the total settlement amount, all deductions, and exactly what you will receive.

Clients have a right to understand where every dollar went. An attorney who rushes through the disbursement process or provides vague explanations may not be giving you the full picture.

When this becomes legal malpractice: Withholding a disbursement statement, misrepresenting how settlement funds were allocated, or distributing funds without client approval are serious ethical violations. When paired with financial harm to the client, they can form the basis of a malpractice claim.

Fees were taken before liens and obligations were settled

The order in which settlement funds are distributed matters significantly. In many cases, medical liens and other obligations must be negotiated/reduced, and resolved before attorney fees are collected/paid. When fees are taken from the gross settlement first, clients can be left without enough to cover outstanding medical bills.

If your attorney collected their full fee while leaving you to manage unpaid liens on your own, that can be a failure of the duty owed to you as a client. You may have more options than you realize, including suing attorneys for legal malpractice.

When this becomes legal malpractice: When an attorney collects their fee before ensuring that medical liens and other obligations are properly resolved, and the client suffers financial harm as a result, that failure can constitute a breach of duty and legal malpractice.

How to tell if your lawyer is cheating you on a settlement

Most clients trust their attorney to handle the numbers honestly, and most of the time that trust is warranted. But there are clear warning signs that something may be off. If any of the following sound familiar, it is worth taking a closer look.

• You never received a written disbursement statement before funds were distributed
• The final number you received was significantly lower than you expected with no clear explanation, or your attorney received far more from the settlement than you did.
• Your recovery was less than the attorney told you it would be when you authorized the settlement
• You never authorized the settlement for the amount received
• Your attorney refuses to provide a breakdown (and receipts) of expenses
• Your attorney was vague or evasive when you asked how fees were calculated
• You were pressured to sign settlement documents quickly without time to review them
• Costs were deducted from your share that were never mentioned in your fee agreement
• Your attorney stopped communicating after the settlement was finalized
• The fee percentage taken does not match what was outlined in your original agreement

If one or more of these apply to your situation, do not dismiss them as a misunderstanding. Attorneys have a fiduciary duty to their clients, meaning they are legally obligated to act in your financial interest and keep you fully informed at all times. When that duty is violated, you have every right to pursue answers and potentially take legal action.

Learn more about what to do if your attorney steals your settlement and how to fight excessive attorney fees

FAQs

Is my lawyer overcharging me?

In Texas, attorney fees must be reasonable under State Bar rules. If your fee percentage exceeded 40%, costs were deducted without prior disclosure, or you never received a clear accounting of your settlement, those are signs you may have been overcharged. A legal malpractice attorney can review your agreement and disbursement records to find out.

Why is my lawyer asking for more money?

Some attorneys request additional funds during a case to cover unexpected litigation costs such as expert witnesses or deposition fees. This is not automatically improper, but it should be supported by a clear written explanation and consistent with your original fee agreement. If your attorney cannot justify the request in writing, that is a red flag.

What to do when a lawyer overcharges you?

Start by requesting a complete itemized accounting of all fees and costs deducted from your settlement. If the numbers do not add up or your attorney is unresponsive, you have the right to file a complaint with the State Bar of Texas or consult a legal malpractice attorney. Acting quickly matters, as Texas has statutes of limitations that apply to these claims.

What’s the most a lawyer can take from a settlement?

Texas does not set a universal cap on contingency fees, but anything above 40% of a standard personal injury settlement warrants scrutiny. If your attorney took more than what your agreement allows, or received more than you did from the settlement, that may be grounds for a legal malpractice claim.

If your lawyer walked away with more money than you, they may owe you more than an apology.

Why is my lawyer getting more money than me? It is a question no client should have to ask. But if you are asking it, there is a chance something went wrong — and you deserve to know the truth.

Ross Sears has spent his career holding attorneys accountable for exactly this kind of conduct. If your fee agreement was never clearly explained, your settlement disbursement didn’t add up, or your attorney simply walked away with more than they were entitled to, that is not something you have to accept. Texas law gives you options.

Do not wait. Legal malpractice claims in Texas are subject to strict deadlines. Call (713) 223-3333 or contact us online to schedule a confidential consultation with Ross Sears today.

More Helpful Articles by Sears Crawford: 

• What Qualifies as Attorney Professional Misconduct in Texas?
• 5 Examples of Legal Malpractice in Texas
• When Can I Sue My Lawyer?
• The Case Within a Case in Attorney Malpractice Lawsuits
• 8 Questions to Ask Your Legal Malpractice Attorney in Texas