Contingency fee
The lawyer is paid a share of what is recovered, and nothing if there is no recovery.
It is how almost every injury case is funded, and the part people miss is that fees and costs are two different things. This is general information, not legal advice.
What it means
A contingency fee agreement in California has to be in writing, and the statute sets out what it must contain — the rate, how disbursements and costs affect the fee and the recovery, and a statement that the rate is negotiable rather than fixed by law.
Fees are the lawyer's share. Costs are what the case spends — filing fees, records, deposition transcripts, experts. Those are usually advanced by the firm and repaid out of the recovery, and clients typically remain responsible for them.
Read which comes off first. A fee calculated before costs and a fee calculated after costs produce different numbers from the same settlement.
Where this is dealt with properly
This entry is the short answer. These pages own the subject.
Common questions
- Is the percentage set by law?
- No, and the agreement has to say so. The rate is negotiable between you and the lawyer.
- What happens to costs if the case is lost?
- That depends on the agreement, and it is the clause to read before signing. Clients commonly remain responsible for costs advanced even where there is no recovery.
Start a case review call
On a case review call, I go through the facts with you: what happened, when, whether you were hurt, whether anyone represents you, and how to reach you. It is not legal advice, and I will not put a value on your claim.
Sources: Bus. & Prof. Code, § 6147 (contingency fee agreements must be in writing and state required terms); Cal. Rules of Prof. Conduct, rule 1.5 (fees for legal services).