Michigan's Across-the-Board Attorney Fee Cap, Compared

Most states that cap contingency fees reach only medical malpractice. Michigan's one-third ceiling reaches nearly every personal injury claim there is.

Scope is where Michigan genuinely differs

Illinois caps contingency fees at a flat 33⅓%, but only in medical malpractice cases — an ordinary car accident or slip-and-fall case there carries no statutory fee cap at all. Michigan Court Rule 8.121 applies the identical one-third rate, but to essentially every personal injury and wrongful death claim, plus no-fault benefits claims. The rate happens to land in the same place as Illinois's malpractice-only figure; the reach is categorically broader.

A flat rate vs. a declining schedule

Massachusetts's medical malpractice fee schedule starts higher, at 40% on the first $150,000, before declining through 33⅓%, 30%, and 25% as the recovery grows. Michigan's one-third rate doesn't decline at all — it's a single ceiling applied uniformly, whatever the size of the recovery, but only up to that ceiling; it's also simply a different design choice than a sliding scale, not a stricter or looser one in isolation.

Why a flat rate is easier to apply broadly

A single flat percentage is simpler to enforce uniformly across a wide range of claim types, which may be part of why Michigan's rule reaches so much further than a typical sliding scale: a declining, multi-tier schedule is generally easier to justify and administer when reserved for one specific, often high-value case type like medical malpractice, rather than applied across the board.

Which approach costs more depends on the case

Because Michigan's flat one-third is actually higher than the bottom tiers of a declining schedule like Massachusetts's, a large Michigan recovery can carry a higher effective fee rate than the equivalent recovery would under a sliding-scale state's top tier — the broader reach doesn't automatically mean a cheaper fee on any individual claim.

The flat rate has survived past reform efforts

A legislative proposal once floated replacing Michigan's flat rule with its own declining sliding scale, but it did not become law. The one-third ceiling under MCR 8.121 remains the current, unchanged rule.

Michigan's fee cap compared — frequently asked questions

How is Michigan's fee cap different from a medical-malpractice-only cap like Illinois's?

Illinois caps contingency fees only in medical malpractice cases. Michigan's one-third cap under MCR 8.121 applies to essentially all personal injury, wrongful death, and no-fault benefits claims, regardless of the underlying type of case.

Is Michigan's cap higher or lower than Massachusetts's medical malpractice tiers?

They aren't directly comparable rates, since Massachusetts's tiered schedule only governs medical malpractice and starts higher (40%) before declining, while Michigan applies a single flat one-third rate across a far broader range of case types from the outset.

Why might a state choose a single flat percentage over a sliding scale?

A flat rate is simpler to apply and enforce across every case type uniformly, while a sliding scale is typically reserved for a narrower category — like medical malpractice — where lawmakers want the effective rate to decline specifically on larger recoveries.

Does Michigan's broader scope mean its cap is stricter than states with a medical-malpractice-only cap?

In scope, yes — it reaches more case types. In rate, one-third is actually higher than the top-tier rate many sliding-scale states apply to the largest recoveries, so the comparison depends on both the size of the case and its type.

Has Michigan considered moving to a sliding scale like some other states?

Yes — a legislative proposal floated a declining sliding scale in place of the flat one-third rule, but it did not become law, and the flat cap under MCR 8.121 remains current.

This page provides general guidance only and is not legal advice. Figures are based on general US attorney fee practice and Michigan Court Rule 8.121, verified per our methodology. Confirm how these rules apply to a specific claim with a licensed attorney in the relevant state before acting.