Virginia: How Contingency Fees Really Work, Explained

The percentage is negotiated freely — and a real 2023 court dispute between two attorneys confirms exactly how Virginia judges apply the reasonableness standard.

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 real dispute that tested Rule 1.5 directly

In Moncrieffe v. Deno (2023), two Virginia attorneys who had worked together disagreed sharply over a fee split: one argued the proper figure was one-third of the recovery, the other claimed the agreed percentage was only 7.5%. The Court of Appeals of Virginia affirmed the trial court's finding that the one-third fee was reasonable under Rule 1.5, with the attorney seeking that fee bearing the burden of proving its reasonableness — a burden the court found was met.

What Rule 1.5 actually requires in writing

Rule 1.5(c) requires a contingency fee agreement to state in writing the method by which the fee will be determined, including the percentage and whether litigation and other expenses will be deducted before or after the contingent fee itself is calculated — a detail that can meaningfully affect what the client nets.

No fixed formula, just factors to weigh

Rule 1.5 doesn't supply a numeric formula for reasonableness. It lists factors — the time and labor required, the fee customarily charged in the locality for similar work, the experience and ability of the attorney, and whether the fee is fixed or contingent — leaving the final figure to case-by-case judgment rather than a statutory percentage.

A commonly used figure in practice

One-third of the recovery is a commonly cited figure in Virginia personal injury practice, as reflected in the Moncrieffe dispute itself. The rate remains negotiable between attorney and client, subject always to the Rule 1.5 reasonableness standard.

How contingency fees work — frequently asked questions

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

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

What exactly happened in Moncrieffe v. Deno?

Two Virginia attorneys who had worked together disagreed over how a referral fee should be split — one argued for one-third of the recovery, the other for 7.5%. The Court of Appeals of Virginia affirmed the one-third fee as reasonable under Rule 1.5.

What does Rule 1.5 require a Virginia contingency fee agreement to state in writing?

The method by which the fee will be determined, including the percentage and whether litigation and other expenses will be deducted before or after the contingent fee is calculated.

Is there a numeric formula Virginia uses to decide if a fee is reasonable?

No — Rule 1.5 doesn't provide a formula. It lists factors to weigh, including the time and labor required, the fee customarily charged for similar work, and whether the fee is fixed or contingent, leaving the specific amount to case-by-case judgment.

Is a contingency fee agreement negotiable in Virginia?

Yes. The rate is set by private agreement between attorney and client, subject to the reasonableness standard of Rule 1.5.

This page provides general guidance only and is not legal advice. Figures are based on Rule 1.5 of the Virginia Rules of Professional Conduct and Moncrieffe v. Deno (2023), verified per our methodology. Confirm your actual fee agreement with a licensed Virginia attorney before acting.