LA Century Law works on contingency, giving individuals easier access to the services of a personal injury lawyer in California.
Our experienced San Bernardino personal injury lawyers at LA Century Law explain personal injury lawyer fees in California and what you could actually pay.
How Do Personal Injury Lawyer Fees Work in California?
Personal injury lawyer fees in California typically work on a contingency fee basis, meaning the lawyer is paid based on the results they receive.
Attorney fee agreements are negotiable between the client and the attorney. While regulations apply, the attorney and client are free to enter into the agreement they choose. Most often, California injury lawyer fees are paid with a contingency fee agreement.
What Is a Contingency Fee Agreement?
A contingency fee agreement is a contract for legal services where attorney fees are calculated and paid from the final monetary award in the case. The amount the attorney receives is contingent upon the amount the client receives and is generally a percentage of the client’s award, usually after expenses are deducted.
Contingency fees are a different system from hourly fees. With hourly fees, the client pays for the attorney’s time. With hourly attorney fees, the fee could quickly exceed what the client recovers in compensation.
What Percentage Do Personal Injury Lawyers Take in California?
BPC § 6146 states the maximum amounts that personal injury lawyers may take for contingency fees in California. The amount depends on when the case resolves.
Chart – California Maximum Personal Injury Contingency Fee Percentages
| If the case resolves: | The maximum contingency fee is: |
| Before a formal complaint or request for arbitration is filed (for example, direct settlement with insurance) | 25% |
| After a complaint or demand for arbitration is filed, including if the case goes to trial | 33% |
| *With trial or arbitration | >33%, with court approval |
If a case is tried in court or arbitrated, the plaintiff’s attorney may motion the court to exceed 33%. It is within the court’s discretion to award a higher amount, but there must be good cause.
Installment payments
If a judgment is for installment payments, the court may place a total value on the award based on life expectancy. That amount is then used to calculate attorney fees.
Do You Pay Upfront or Out-of-Pocket?
With contingency fees, you don’t pay personal injury fees up front or out-of-pocket. Fees are calculated based on the results of the case.
Separate from the attorney’s fees are the costs of litigation. Examples of costs include the case filing fee with the court, fees paid to expert witnesses, and expenses to prepare exhibits. While the attorney usually advances costs to start the case and then deducts them from the final calculation, it can depend on the law firm.
What Case Costs Are Separate from Attorney Fees?
Case costs are the expenses of pursuing a case.
Case costs that are often separate from attorneys’ fees include:
- Court reporter fees for depositions, trials, and transcripts
- Copying and faxing costs, telephone
- Expert witness fees, consultant fees
- Investigator fees
- Court filing fees
- Juror service and mileage fees
- Witness fees
- Mailing and postage
- Service of process
- Staff travel for the case, like mileage, lodging, and meals
- Other costs
This list is not exhaustive. Some costs are fixed by law, such as the filing fee to start a civil claim. Other costs depend on the complexity of the case.
Your contingency fee agreement will state what costs will be deducted.
How Lawyer Fees Are Calculated After a Settlement
Here are some examples of how personal injury lawyer fees are calculated after a settlement.
Example #1: The case settles during insurance negotiations. The total settlement is $25,000. Costs are $2,000. The contingency fee agreement is 25%.
$25,000 X 25% = $6,250: amount paid to the attorney
$18,750 remaining
$2,000: costs deducted
__________________________
$16,750: final amount paid to client
In this fictional example, say the insurance company offered only $4,000 in settlement before the person hired a lawyer. Even after paying the lawyer’s fee, the client still recovered four times the initial proposed settlement.
Example #2: The case goes to trial. The final judgment is $300,000. Costs are $20,000. The contingency fee agreement is 33%.
$300,000 X 33% = $100,000
$200,000 remaining
$20,000: costs deducted
___________________________
$180,000 paid to the client
Each case is different, and results are not guaranteed. Our lawyers can provide a personalized consultation about your expected case value and potential costs of litigation.
Are Personal Injury Lawyer Fees Regulated in California?
Personal injury lawyer fees are regulated in California:
- California Code, Business and Professions Code—§ BPC 6146, Attorneys, Fee agreements (percent limits)
- California Code, Business and Professions Code—§ BPC 6147, Attorneys, Fee agreements (contract requirements)
- State Bar of California—Rule 1.5, Fees for legal services
What must be stated in a contingency fee agreement in California? (BPC § 6147)
BPC § 6147 addresses personal injury lawyer contingency fees specifically. Contingency fee agreements must be in writing. They must include:
- The fee rate
- How costs are paid
- What the client must pay the attorney for handling other matters, if any
- A statement that the fee is not set by law and is negotiable
- If the claim falls under § 6146, a statement that the rates are the maximum allowed under law and are negotiable
- A statement that failing to comply with § 6147 allows the plaintiff to elect to pay a reasonable fee
Each law firm drafts its own contingency fee agreements, but they must meet basic requirements.
What Happens if You Lose Your Case?
If you lose your case, and you have a contingency fee agreement, you won’t owe attorney’s fees. Depending on the agreement, the client may still owe the costs of litigation.*
*Note: At LA Century Law, we use a No Win, No Fee Guarantee. Ask us for more information about how it works.
How To Review a Personal Injury Fee Agreement Before Signing
Take time to carefully review a personal injury fee agreement before signing. It should be easy to understand. Ask any questions.
Contact an Experienced San Bernardino Personal Injury Lawyer
If you’ve been injured in a personal injury accident, contact an experienced San Bernardino personal injury lawyer at LA Century Law. Learn about our personal injury lawyer fees in California.
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