Do Minors Pay a Lower Attorney Fee in Michigan?

By the FigureMyTax Editorial Team · How we calculate

We found no Michigan statute that caps injury contingency fees or sets a lower rate for a child. The fee comes from your written agreement, and the judge who passes on the fairness of the settlement can look at it.

What we looked for

We searched the Michigan provisions on minors' settlements, no-fault tort claims and limitation periods and found no percentage cap on a contingency fee and no separate fee rule for a minor. We did not read the Michigan Rules of Professional Conduct or the court rule on contingent fees, so we cannot say what they require of a fee agreement.

Court review

The judge must pass on the fairness of the proposal under Court Rule 2.420, summarized in the Michigan Judicial Institute's civil benchbook, and practice sources say the probate court approves attorney fees and expenses when it handles a pre-suit claim. Ask your lawyer what fee information the court will want.

A worked example

On a $60,000 settlement with a one-third fee ($20,000), $2,500 in costs and $8,000 in medical bills and liens, the child's net is $29,500. At 25% the fee is $15,000 and the net $34,500. In either case it exceeds $5,000, so a conservator would be needed if it is paid at once. The Michigan minor's settlement calculator lets you change the fee and the payment pattern.

Ask before you sign

Ask for the fee agreement in writing, whether the percentage is calculated before or after costs, and what the court will be told. Then read how the child's money is held and see what a claim can take from a settlement.

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