Contingency fees in California: what the written agreement must say

Most personal injury lawyers work on a contingency fee: instead of billing by the hour, the lawyer is paid a share of any money recovered, and if there is no recovery, there is usually no fee. “Usually” is the important word. The written agreement decides the details, and California law says what it has to cover.

It must be in writing

California Business and Professions Code §6147 requires a contingency fee contract to be in writing, and the lawyer must give you a fully signed copy when it is signed. The section lists what the contract must state, including:

• the contingency fee rate the lawyer and client agreed;
• how disbursements and costs will affect the fee and what you receive;
• to what extent you could have to pay for related matters the contract does not cover;
• for most cases, that the fee is not set by law and is negotiable between you and the lawyer.

The section also says what happens if a contract does not meet these rules. Read the statute itself, or ask the lawyer to walk you through how their agreement meets it.

Fees and costs are different things

The fee is what the lawyer is paid for their work. Costs are the expenses of the case: things like filing fees, medical records, expert witnesses and depositions. Agreements handle costs in different ways. Before you sign, ask:

• Is the percentage taken before or after costs are paid back?
• Does the percentage change if the case goes to a lawsuit, to trial or to an appeal?
• If there is no recovery, do I owe anything for costs?
• How are medical bills or liens paid out of a settlement, and who negotiates them?
• Will I get a written statement showing how any recovery was divided?

We do not publish typical percentages: the rate is negotiable and depends on the agreement.

266 firms in the directory state a contingency fee arrangement on their own site, and 359 firms say the first consultation is free (as of November 5, 2026). Those are the firms’ own statements; the written agreement is what counts.

Take your time

You can take the agreement home and read it before signing, and you can ask questions about any line you do not understand. A lawyer should be willing to explain it in plain words.

See also: how to check a California lawyer’s license.