How Contingency Fees Work

If you were hurt in Santa Monica and are worried about the cost of hiring an attorney, a contingency fee means you pay nothing upfront and no attorney fees unless your case recovers money. California adds rules that protect clients, including fee limits in some types of cases and court review when the injured person is a child. Our Santa Monica, CA personal injury lawyer can walk you through every term of the agreement before you sign it. Cohen Injury Law Group handles injury cases on contingency, so upfront legal costs do not stand between you and a valid claim.

What Happens If the Agreement Is Missing a Required Term

California requires every contingency fee agreement to be in writing, and the client must receive a signed copy when it is made. Business and Professions Code §6147 lists the terms the agreement must include, such as the fee rate, how costs affect your recovery, and a statement that the fee is negotiable.

A detail many clients never hear about is what happens when a term is left out. Under the same statute, an agreement that fails to include a required provision is voidable at the client’s option. If the client voids it, the attorney is limited to a reasonable fee rather than the percentage in the contract.

Fee Limits in Medical Malpractice Cases

Some injury cases grow to include a second claim against a health care provider, such as a missed diagnosis in an emergency room after a crash or a birth injury during delivery. These claims fall under California’s MICRA rules, and Business and Professions Code §6146 caps the attorney fee at 25 percent if the case settles before a lawsuit or arbitration demand is filed, and 33 percent after. In a case that goes to trial or arbitration, the attorney may ask the court or arbitrator for a higher fee, which requires good cause.

Court Approval When the Injured Person Is a Child

When a minor is hurt, such as a child struck in a crosswalk or bitten in a dog bite attack, a court must approve the settlement and the attorney fee paid from it. Under California Rules of Court, rule 7.955, the judge applies a reasonable-fee standard and considers factors like the value of the services, the difficulty of the case, and the results obtained, even when a contingency agreement is in place. The attorney must file a declaration supporting the fee request.

The child’s share is often placed in a blocked account or a structured settlement until adulthood. Parents should expect the approval hearing to add some time to the case.

How Liens Affect What You Take Home

Your net recovery depends on more than the fee. Health insurers, Medi-Cal, Medicare, and hospitals may assert liens against a settlement for the care they paid for. California’s hospital lien law limits what a hospital can collect through its lien to 50 percent of the recovery after prior liens are paid.

Negotiating lien reductions is part of closing a case, and those reductions can change your final share significantly. The way your medical bills are counted in the claim also affects the starting point for those negotiations.

Changing Lawyers or Disputing a Fee

You can change attorneys at any point in a case. The California Supreme Court held that a discharged attorney working on contingency is limited to the reasonable value of the services already performed, payable only if the case eventually recovers money. That rule generally keeps a client from owing two full fees.

If a disagreement about fees arises at the end of a case, the State Bar’s fee dispute program offers an informal, lower-cost alternative to court. Once a client requests arbitration through that program, the attorney must take part. Most fee arbitrations are run by local bar associations.

Talk to a Personal Injury Attorney in Santa Monica, CA About Fees

The same contingency arrangement applies whether you need our truck accident lawyer in Santa Monica, CA or our boat accident lawyer in Santa Monica, CA. Attorney Wayne R. Cohen has practiced law since 1991, and his commentary has appeared in Fortune and Reader’s Digest. Attorney Nicholas E. Cohen earned his J.D. at Loyola Law School. Cohen Injury Law Group also represents injured clients in nearby communities like Culver City.

If you are deciding when to hire an attorney, a free consultation costs nothing and commits you to nothing. Contact our team to review your options.

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