Delaware: How Contingency Fees Really Work

Outside medical malpractice, it's a negotiated promise. Inside it, Delaware actually writes a three-tier formula into law.

The core promise: no recovery, no fee

A contingency fee means the attorney's fee is contingent — dependent — on actually winning or settling the case. If there's no recovery at all, the client generally owes no attorney fee, regardless of how much work went into the case. This holds true across every type of Delaware personal injury case.

Outside medical malpractice: a negotiated rate

For an ordinary personal injury claim — a car accident, a slip and fall — Delaware sets no statutory percentage at all. The rate is whatever the attorney and client agree to, with 33.3% being the common market figure.

Inside medical malpractice: three tiers, by statute

This is where Delaware genuinely differs. 18 Del. C. § 6865 sets the maximum fee by tier: 35% of the first $100,000 of damages, 25% of the next $100,000, and 10% of any balance above $200,000. Each tier is taxed separately and added together — so on a $500,000 award, the fee works out to $35,000 (first tier) + $25,000 (second tier) + $30,000 (10% of the remaining $300,000), for a total of $90,000, an effective rate of 18%, not 35%.

A built-in alternative: per diem billing

The statute also allows a party to elect to pay their attorney on a per diem — essentially hourly — basis instead of the capped contingency schedule, provided a written contract for that arrangement is drafted at the time of employment. This gives clients and attorneys a documented alternative path when the capped schedule doesn't fit the case.

The cap touches fees, not damages

Worth keeping straight: Delaware's medical malpractice fee cap limits only what the attorney can charge. It does not limit what the client can recover — Delaware places no cap on damages in a medical malpractice case, a genuinely unusual combination compared to states that cap both together.

How contingency fees work — frequently asked questions

What does "contingency" actually mean in a Delaware fee agreement?

It means the attorney's fee is contingent on winning or settling the case. If there's no recovery, the client generally owes no attorney fee at all.

How is the Delaware medical malpractice fee calculated on a larger award?

Each tier is calculated separately and added together: 35% of the first $100,000, 25% of the next $100,000, and 10% of everything above $200,000.

What is the effective fee percentage on a $500,000 Delaware medical malpractice award?

Around 18%, even though the first tier is taxed at 35% — because the much larger remaining portion is taxed at just 10%, pulling the blended average well below the top rate.

Can a Delaware attorney choose to be paid on a per diem basis instead of the capped schedule?

Yes. A party may elect to pay their attorney on a per diem (hourly) basis instead, provided a written contract providing for that compensation is drafted at the time of employment.

Does Delaware's medical malpractice fee cap limit what the client can recover in damages?

No. The fee cap limits only the attorney's compensation. Delaware places no cap on the damages themselves in a medical malpractice case.

This page provides general guidance only and is not legal advice. Figures are based on 18 Del. C. § 6865, verified per our methodology. Confirm your actual fee agreement with a licensed Delaware attorney before acting.