If I never signed a fee agreement, can that firm still claim a percentage or place a lien for work they did? – North Carolina

Short Answer

In North Carolina, a firm generally cannot enforce a specific contingency percentage without a signed fee agreement. However, if the firm’s work helped create a wrongful death recovery, a court can award a reasonable fee based on the value of that work and secure it against the recovery (a charging lien). In wrongful death matters, attorney fees are paid from the recovery before distribution, and disputes are typically resolved by the court when the settlement is approved or through an accounting.

Understanding the Problem

The decision point is narrow: under North Carolina wrongful death law, can a prior firm that lacks a signed fee contract still claim a percentage or lien on the case recovery? The actors are the personal representative (who controls the wrongful death claim) and the firm that performed work. The action at issue is whether the firm can obtain payment from settlement or judgment proceeds when no signed contingency exists, especially at the time of settlement approval or distribution.

Apply the Law

North Carolina expects contingency fee agreements to be in writing. Without a signed contract, a firm usually cannot enforce a set percentage. But when a firm’s work contributed to a wrongful death recovery, courts may award a reasonable fee under quantum meruit and protect that fee from the recovery through a charging lien. The wrongful death claim belongs to the personal representative, not individual heirs. The main forums are the Superior Court judge who approves a wrongful death settlement (when approval is required) and the Clerk of Superior Court for accountings. Key timing typically centers on raising fee and lien issues before settlement approval or before funds are disbursed.

Key Requirements

• Attorney–client relationship with the personal representative: The firm must have been engaged by the personal representative who controls the wrongful death claim.
• Contribution to the recovery: The firm’s work must be reasonably connected to the settlement or judgment obtained.
• Reasonableness of the fee: Without a signed percentage, the court assesses a fair fee based on the services performed (quantum meruit).
• Notice before disbursement: To secure a charging lien against the recovery, the firm should give clear notice before settlement funds are distributed.
• Court oversight in wrongful death: Attorney fees are paid from wrongful death proceeds before distribution and are reviewed in the settlement approval or accounting process.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-18-2 (Wrongful death; recovery and distribution) – Proceeds are not estate assets; pay litigation expenses and attorney fees before distributing the balance.
• North Carolina Gen. Stat. § 28A-13-3(a)(23) (Personal representative’s power to settle) – Personal representative may compromise or settle; judicial approval is required in specified circumstances.

Analysis

Apply the Rule to the Facts: With no signed facts provided, consider two narrow variations. First: a prior firm investigates, collects records, and negotiates early, but a second firm later finalizes settlement. Because the first firm’s work contributed to the result, a court may award a reasonable fee secured from the recovery. Second: a prior firm had only an intake call and did no substantive work. In that case, the court is less likely to award a meaningful fee or recognize a lien.

Process & Timing

1. Who files: The prior firm may give written notice of a charging lien to the personal representative and, if applicable, file a motion to adjudicate fees in the wrongful death action. Where: Superior Court (before the judge who will approve the settlement) or raised in the estate’s accounting before the Clerk of Superior Court. What: Motion to adjudicate attorney’s fees/lien; notice of lien; supporting time and work records. When: Before settlement approval or before any disbursement of proceeds.
2. The court reviews whether the prior firm’s work contributed to the recovery and whether the fee sought is reasonable. Timeframes vary by county; hearings are often scheduled within weeks depending on the court’s calendar.
3. The judge enters an order allocating attorney fees from the wrongful death recovery before distribution; the Clerk may require a separate wrongful death accounting reflecting the court-approved allocation.

Exceptions & Pitfalls

• If the personal representative did not engage the firm, a fee claim against wrongful death proceeds is weak because the claim belongs to the personal representative, not heirs.
• Without a signed contingency, a set percentage is usually unenforceable; be prepared to prove the value of work performed with records and documentation.
• Failing to give timely notice of a charging lien before disbursement can forfeit the ability to secure payment from the recovery.
• Fee disputes can delay settlement approval; present them at the approval hearing with detailed support.
• Wrongful death proceeds are not general estate assets; do not commingle them and do not pay unrelated creditors from them.

Talk to a Wrongful Death Attorney

If you’re dealing with a disputed fee or lien in a North Carolina wrongful death recovery, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.