Do Minors Pay a Lower Attorney Fee in Alabama?

By the FigureMyTax Editorial Team · How we calculate

Alabama has no statutory cap on personal injury contingency fees, and we found no statute that sets a lower rate for children, but a judge reviews the fee when approving a minor's settlement and can reduce one that is excessive.

No statutory cap and no special child rate

An Alabama firm notes that Alabama places no fixed cap on the amount a lawyer can request in a contingency agreement, and we did not find a statute that gives children a different rate. The fee is set by the written agreement the parent or guardian signs.

The ethics limit: clearly excessive

Rule 1.5(a) of the Alabama Rules of Professional Conduct says a lawyer shall not enter into an agreement for, charge or collect a clearly excessive fee, judged by the factors in the rule. A contingent fee agreement must be in writing under Rule 1.5(c). A fee that is acceptable for an adult may therefore be questioned in a child's case.

What the judge reviews

At the pro ami hearing the judge must decide that the settlement is fair and reasonable to the child, and the fee coming out of it is part of that review. The Alabama Supreme Court has stated that a probate court may, in its discretion, reduce an agreed-upon attorney fee if it concludes that the fee is unreasonable. It has also set aside a fee it found excessive in a minors' settlement: in Pharmacia Corp. v. McGowan (2005) it held that $284,000 awarded to a guardian ad litem exceeded the trial court's discretion, and Ex parte Shinaberry (2020) addressed a challenge to a guardian ad litem's fee in a pro ami settlement.

What the agreement must say

Under Rule 1.5(c), a contingent fee agreement must be in writing and state how the fee is calculated, so read whether the percentage is taken before or after costs and whether it changes if a lawsuit is filed. The calculator uses 25%, 33.3% and 40% as examples, not as a rule or a prediction of your agreement.

Other deductions from the child's share

The guardian ad litem's fee is set by the court and is taxed as part of the costs, and medical bills and liens come out too; see what a lien can take from a settlement. Together with case costs, they reduce the net the child receives.

See the effect of the fee

Change the fee in the Alabama minor's settlement calculator to see how 25%, 33.3% and 40% change what is left, and read why the judge reviews the settlement.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Alabama's rules apply to your specific case with a licensed Alabama attorney.