Short answer
Will I have to pay two lawyers if I fire my personal injury lawyer in Michigan?
No. In a Michigan personal injury or no-fault case you pay one contingency fee, capped at one-third of the net recovery by MCR 8.121, even when two firms share it. The fired lawyer can claim only the reasonable value of work done (quantum meruit), usually through a lien on the fee, plus reimbursement of costs it advanced.
Key takeaways
- MCR 8.121 caps the contingency fee at one-third of the net recovery, and the cap covers any sharing of that fee between firms.
- A fired contingency-fee lawyer is paid in quantum meruit, the reasonable value of services, not the full contract fee (Reynolds v Polen, 222 Mich App 20 (1997)).
- A charging lien is a claim against the recovery for the old firm’s share of the fee. It does not stop your case from settling.
- Disputed money stays in a trust account until resolved, and undisputed funds should be paid out promptly (MRPC 1.15).
- Case costs the old firm advanced, such as records and filing fees, are usually repaid from the settlement. They are separate from the fee.
The reason people stay with bad lawyers isn’t loyalty. It’s a quiet fear that leaving means paying two lawyers out of one settlement.
You’ve been there. Phone calls not returned. A paralegal who keeps confusing your case with someone else’s. A settlement offer you’re pretty sure is low, pushed at you like it’s a gift. And every time you think about firing them, the same thought stops you cold:
What if I end up paying two lawyers? What if they sue me? What if firing them means I walk away with nothing?
Take a breath. In Michigan, the math on firing your lawyer is almost never what you’re afraid it is. (Whether you’re allowed to fire them isn’t in question: yes, you can fire your Michigan injury lawyer, with or without a reason.)
Do you pay two contingency fees if you switch?
No. You pay one fee, and the two firms divide it.
Your first lawyer signed you to a contingency agreement, usually one-third. Your new lawyer will sign you to a contingency agreement, also usually one-third. Same one-third.
Michigan’s court rule on injury and no-fault fees, MCR 8.121, caps the fee at one-third of the net recovery. It also says that any “receipt, retention, or sharing” of a fee above that cap counts as a clearly excessive fee. So the cap applies to the total, not to each firm separately. What changes when you switch is who gets paid out of that one-third, not how much comes out of your pocket.
You are not in the fee fight between the firms. You do not fund it.
What is quantum meruit, in plain English?
It means the fired lawyer gets paid fairly for the work they actually did, not the full contract fee. “Quantum meruit” is Latin for “as much as he deserved.” Michigan courts hold that a client has an absolute right to discharge a lawyer, so a fired contingency-fee lawyer can’t enforce the original contract. Instead, they get the reasonable value of their services (Reynolds v Polen, 222 Mich App 20 (1997)).
The key word is reasonable. Not one-third on top of your new lawyer’s one-third. Not a punishment fee. Not whatever number they write on a letter. A reasonable value for the hours, the demand letter, the depositions and the expert they hired, meaning the work that still has value in your case.
The old firm’s quantum meruit share comes out of the single contingency fee. It does not come out of your recovery on top of that fee.
So if your case settles for $300,000 with, say, $15,000 in case costs, the net is $285,000. One-third of that, $95,000, is the most the lawyers can collect between them, and that’s what gets divided between the old firm and the new one. Your share doesn’t shrink because you switched. (Every case is different, and your closing statement will show the real numbers.)
What’s the difference between a charging lien and a retaining lien?
A charging lien is a claim on the settlement money. A retaining lien is a claim to hold your papers. “Lien” sounds like the old firm can freeze your settlement or hold your file hostage. Let’s take it apart.
Charging lien
A charging lien is a former attorney’s claim against the eventual settlement or judgment in your case. In Michigan, a discharged lawyer can assert one to protect their quantum meruit claim.
What it does: - Gives the old firm the right to be paid from the settlement for its share of the fee. - Attaches to the fee portion, which the firms divide, not to your net recovery. - Gets resolved by agreement between the two firms or, if they can’t agree, by a judge.
What it does not do: - Stop your case from settling. - Give the old firm a veto over your new lawyer’s strategy. - Let them reach into your pocket for a second fee.
Retaining lien
A retaining lien is a lawyer’s claim to hold the client’s papers as security for unpaid fees. In Michigan PI practice it rarely causes a real problem:
- MRPC 1.16(d) requires a departing lawyer to protect your interests, including “surrendering papers and property to which the client is entitled.” The comment adds that papers can be held as security for a fee “only to the extent permitted by law.”
- In a contingency case the old firm’s fee claim is already protected by the charging lien, so there’s little reason to sit on your file.
- If a firm refuses, MCR 8.122 lets a client file a verified complaint in circuit court asking for an order directing the attorney to act.
If an old firm is dragging its feet on your file, that’s a sign you should switch, not a sign you shouldn’t. Here’s the letter that demands your file under MRPC 1.16(d).
When do the two firms settle up?
After your case settles, and not with your money.
Picture the order of operations:
- You fire the old firm. You sign with the new firm.
- Your new lawyer takes the case through to settlement or verdict.
- The insurance check is deposited in your new lawyer’s trust account.
- Costs are paid, then the fee is set aside. Your share goes to you.
- The two firms divide the fee, by agreement or by letting a judge decide.
You are not a party to step 5. You don’t pay for it or sit through it. Under MRPC 1.15, when two people claim the same money, the lawyer must keep the disputed portion in trust until the dispute is resolved and promptly distribute the portion that isn’t in dispute. That usually means you get paid while the firms argue over the fee.
The old firm is not fighting you. They are fighting your new firm for a slice of one fee.
When can firing your lawyer actually cost you more?
In four situations. Honest is better than reassuring, so know them before you sign anywhere.
1. The new firm’s agreement adds an hourly charge
Some firms try to charge an hourly fee plus a contingency. That’s a red flag in PI work. A reputable Michigan PI firm should take your case on straight contingency, and MCR 8.121’s one-third cap still applies to the total. (These are among the questions to ask a personal injury lawyer before signing.)
How to spot it: Read the fee section of the new engagement letter out loud. If you hear “hourly” or “retainer,” ask why, and be ready to walk.
2. The new firm makes you personally responsible for the old firm’s lien
The standard setup is that the two firms divide the single fee. Some engagement letters, though, slip in language making you responsible for whatever the old firm claims.
How to spot it: Look for phrases like “client agrees to pay any prior attorney’s fees or liens” or “client remains responsible for fee disputes.” In a clean agreement, the new firm handles that fight out of its fee.
3. You fire on the eve of settlement
If the old firm already negotiated an offer you’re about to accept and you fire them days before signing, their quantum meruit share will be large, because they did most of the work. You still don’t pay more than the one capped fee, but the new firm may decline the case because there’s little fee left for them.
How to spot it: If the demand has already been accepted or you’re close to signing a release, get a second opinion before firing. (See whether it’s too late to switch lawyers mid-case.) Sometimes the right move is to let the current firm close the file and have the settlement offer itself independently evaluated.
4. Costs get charged twice
Case costs (records, filing fees, experts) are separate from the fee. The old firm is usually repaid what it actually advanced, from the recovery. That’s fair. Paying for the same records twice is not.
How to spot it: Ask for an itemized closing statement. MRPC 1.5(c) requires one at the end of every contingency-fee matter, showing what you received and how it was calculated. For more on how fees and costs are calculated, see how Michigan PI contingency fees really work.
Are you really allowed to leave?
Yes. Michigan’s rules are built around a simple principle: a client can discharge a lawyer at any time, with or without cause, and the lawyer gets paid fairly for the work actually done.
If you’re staying in a bad representation because you’re scared of a phantom second fee, that fee mostly does not exist. The one-third stays one-third. The liens attach to the fee, not to you. The fight happens after you win, in a room you don’t have to sit in. If you’re weighing a switch, get a free second opinion on your case first.
This article is general information about Michigan law, not legal advice for your specific case.
Frequently asked questions
Can my old lawyer sue me for their fee if I fire them?
What is a charging lien in Michigan?
Do I have to reimburse case costs the old firm paid?
Who decides how the fee is split between the two firms?
Is it too late to switch if I already have an offer on the table?
Sources
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Original content. Unauthorized reproduction prohibited. This article is general information, not legal advice.