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.
A distinctively worded standard
Texas Disciplinary Rule 1.04(a) doesn't use the plain "unreasonable fee" language found in many other states' rules. Instead, it prohibits entering an agreement for, charging, or collecting an "unconscionable" fee — a notably stronger term, though the rule's own commentary notes that a separate list of reasonableness factors still informs how that standard actually gets applied in practice.
A written agreement with stage-by-stage percentages
Rule 1.04(d) requires a contingency fee agreement to be in writing and to state how the fee is calculated, listing each percentage that applies depending on how the case resolves — at settlement, at trial, or on appeal. This structure reflects a simple reality: a case that requires a full trial, or an appeal afterward, typically demands substantially more attorney work than one resolved through an early settlement, so the percentage often rises at each stage.
Expenses get spelled out too
The same written agreement requirement extends to how litigation expenses are handled — whether they're deducted from the recovery before or after the contingency percentage is calculated, which can meaningfully change what a client actually nets depending on how the agreement is structured.
No specific percentage written into law
Beyond the unconscionable-fee requirement, Texas sets no specific percentage ceiling for a personal injury contingency fee. The rate is negotiated privately between attorney and client, with one-third of the recovery being a commonly used figure in practice.