Pay-per-signed-case, and where Rule 5.4 bites
The performance-based model explained from the buyer’s side: how it is priced, the single line that separates a lawful marketing fee from prohibited fee-splitting, and what to settle in writing first.
What pay-per-signed-case means
Pay-per-signed-case (PPSC) is a performance-based arrangement where a marketing vendor absorbs media and intake cost and invoices only when a retainer is executed. The firm pays a flat fee per case rather than per lead or per month. It is lawful in most states as advertising expense, provided the fee is fixed rather than a share of recovery — a fee that varies with case outcome is fee-splitting in every U.S. jurisdiction.
- The vendor carries the media risk. Campaign spend, call centre, and everything that does not convert sits on their side of the ledger. That is what the premium buys.
- You carry case-selection risk. You inherit whatever the vendor’s intake standards accepted, and you find out which cases those were after you have paid for them.
- It is priced per case, not per month. Where a vendor quotes PPSC inside a monthly agency retainer, insist on the per-case number — a bundled figure makes cost per signed case impossible to compute, which is frequently the point.
What it costs
Signed MVA retainers are priced by case type, not by a single rate. Published vendor pricing runs $1,500–$2,800 for soft-tissue cases, $2,500–$4,800 for standard auto, $3,500–$6,500 for motorcycle and pedestrian, $7,000–$15,000 for commercial truck, and $10,000–$20,000+ for catastrophic and wrongful death. Tier-1 metros such as Los Angeles, Houston, and Miami run 1.2–1.6× those bands.
| Case type | Per signed case | Acquisition as % of fee |
|---|---|---|
| Soft tissue / minor injury | $1,500–$2,800 | 23–25% |
| Standard auto | $2,500–$4,800 | 20–24% |
| Motorcycle / pedestrian | $3,500–$6,500 | 18–19% |
| Commercial truck | $7,000–$15,000 | 6–12% |
| Catastrophic / wrongful death | $10,000–$20,000+ | 2–8% |
Aggregated from other vendors’ published claims. We sell exclusive leads, not signed cases, and do not quote per-case pricing. If a vendor pitches exclusive leads instead, verify a vendor’s exclusivity claim before comparing the two.
Rule 5.4: the line that decides it
ABA Model Rule 5.4 prohibits sharing legal fees with a non-lawyer, which is what separates a lawful signed-case purchase from an unlawful one. A flat fee per delivered retainer is an advertising expense. A fee calculated as a percentage of recovery, contingent on settlement, or adjusted for case value is fee-splitting and is prohibited in every U.S. jurisdiction regardless of what the agreement calls it. Ask how the price was set, not just what it is.
ABA Model Rule 7.2(b) permits a lawyer to pay the reasonable cost of advertising, including flat per-lead fees to a lead generator, while prohibiting giving anything of value for a recommendation. The operative distinction is whether the payment buys reach or buys an endorsement, and whether the fee varies with case outcome. A fixed price per lead is advertising; a share of the fee is not, in any U.S. jurisdiction.
| How the fee is set | Characterisation | Why |
|---|---|---|
| A flat fee per delivered case | Advertising expense | Fixed price, agreed before delivery, unchanged by what the case turns out to be worth. This is the arrangement Model Rule 7.2(b) expressly permits. |
| Price banded by case type | Advertising expense | A truck case costing more than a soft-tissue case is a pricing tier, not a contingency. The fee is still fixed at the point of delivery. |
| Volume discounts | Advertising expense | Rate falls with committed monthly volume. Ordinary commercial terms; no relationship to outcome. |
| A percentage of recovery | Fee-splitting — prohibited | Rule 5.4(a) bars sharing legal fees with a non-lawyer. There is no U.S. jurisdiction where this is permitted, and calling it a marketing fee does not change the analysis. |
| Payment contingent on settlement | Fee-splitting — prohibited | If the vendor is only paid when you recover, the vendor holds an interest in the outcome. Deferred billing tied to resolution is the same defect in slower clothing. |
| Price adjusted after case valuation | Fee-splitting — prohibited | A true-up once policy limits are known makes the fee a function of case value. Fix the price at delivery or do not buy the case. |
The operative question is not what the invoice is called. It is whether the amount you pay is a function of what the case recovers. If it is, no drafting fixes it.
Solicitation, not just fee-splitting
Capper and runner statutes criminalise paying third parties to solicit accident victims in person — they target solicitation, not advertising, so flat per-lead advertising fees generally sit outside them, though state referral-service rules are a separate test. Our bar rules page explains where the line falls and what to get in writing.
The second exposure is Model Rule 7.3 and its state analogues, which restrict solicitation of a specific person known to need legal services. A vendor’s agent describing representation to a crash victim on the phone is doing something a regulator may characterise that way, and the grievance lands on your licence rather than theirs. Signed-case supply sits closer to this line than lead supply does, because somebody has already had that conversation before you ever see the file. Full treatment on bar rules for lead buyers.
California adds a disclosure and enforcement layer. SB 37 (Ch. 645, Stats. 2025, in force since January 1, 2026) requires legal ads to name a responsible California lawyer, firm, certified referral service, or joint advertiser and an office location, and lets any person sue uncertified referral operations — and attorneys who accept their referrals — for $5,000–$100,000 per violation. Confirm how a vendor routes California claimants before buying under either model; see California SB 37 and buying MVA leads.
Six questions to settle before you sign
Is the fee fixed at delivery, or can it change after the case is valued?
How was this price set — off a rate card, or off what you think the case is worth?
How was the claimant first contacted, and by whom?
What was the claimant told about which firm would represent them?
Will you produce the intake call recording for a case I pick at random?
Who indemnifies my firm if the acquisition method turns out to be improper?
The longer version, covering replacement terms, chargeback windows, and disclosed cancellation rates, is on questions to ask a signed retainer vendor.
Related
The buyer-side comparison lives on signed MVA retainers. The metric that compares the two models is on cost per signed case. What we sell instead is exclusive MVA leads.
This page is general information about how these arrangements are structured, not legal advice, and it is written by a lead supplier rather than by counsel. Confirm any arrangement with your own bar counsel before entering it.