Understanding Contingency Fees in Personal Injury Cases

When you've been injured in an accident, the last thing you want to worry about is how to afford a lawyer. Fortunately, most personal injury attorneys in California operate under a contingency fee agreement—a structure that allows clients to pursue justice without incurring any upfront costs. But how do attorney contingency fees work, and how do they differ from traditional hourly billing? In this article, we'll break down what a contingency fee is, how it compares to hourly rates, and why it's critical to understand the agreement before signing on with legal representation.

Hourly Rate vs. Contingency Fees

In many areas of law, such as corporate, estate planning, or family law, attorneys often charge by the hour. This means a client pays a set rate for each hour the attorney works on the case, regardless of the outcome. Hourly rates can range anywhere from $150 to over $500 per hour, quickly becoming unaffordable for most injury victims already facing medical bills and lost income.

In contrast, personal injury lawyers typically use a contingency fee agreement, a written contract between the client and attorney, that outlines how the lawyer will be paid. Instead of charging hourly, the attorney only gets paid if they win the case—either through a settlement or a court award. For example, if a case settles for $100,000 and the contingency fee is 33%, the attorney would receive $33,000.

But do contingency fees include expenses? In most cases, they don't. Expenses such as court filing fees, medical record requests, expert witness costs, and deposition fees are often separate from the attorney's percentage. Your agreement should clearly explain whether these costs will be deducted before or after the attorney's share is calculated. A reputable attorney can guide you through these details and provide a clear breakdown of what to expect.

What if I Need a New Lawyer?

Need to switch lawyers in the middle of a case? Sometimes, a client may feel that their current lawyer isn't handling the case properly and may consider switching lawyers mid-case. Although this is not that uncommon, it can complicate the contingency fee agreement, as the original attorney may still be entitled to a portion of the recovery based on the work already completed.

In California, if you switch lawyers during a personal injury case, the total attorney fee will typically be split between your previous and new attorney—not added on top of each other. However, this is governed by state rules and should be carefully reviewed with your new lawyer before making any decisions. Switching lawyers is your right, but it's important to do it wisely.

While this fee arrangement is beneficial in most cases, not all agreements are structured the same way. That's why it's imperative to ask several questions during your consultation so you understand the full scope of the attorney contingency fee before signing anything. A knowledgeable and experienced attorney will always take the time to explain the answers and ensure that you feel confident moving forward.

Need a North Hollywood or Reseda Personal Injury Lawyer?

Having the right legal support can make all the difference in a personal injury case. After an accident, most injured victims feel extremely overwhelmed due to emotional distress, mounting medical bills, and lost income—nobody needs the added burden of figuring out how to afford a lawyer. This is why understanding how attorney contingency fees work is so important.

If you've been injured and need clarity on how legal fees work, don't hesitate to reach out. At Yepremyan Law Firm, we're here to help you navigate the legal system with confidence. Since 1998, our law firm in North Hollywood has helped thousands of clients recover millions of dollars. Whether you're dealing with a motorcycle crash, dog bite, or slip and fall, we're here to provide trusted legal guidance.

With 24/7 support, we offer free case evaluations for injured victims in need of immediate assistance. Contact our office today to schedule an appointment with an accident injury attorney in North Hollywood or our Reseda personal injury attorney, who can explain your options and help you move forward. Our firm works on a contingency basis for all personal injury matters—no recovery, no fee.

*No Legal Advice Intended. This website includes general information about legal issues and developments in the law. These materials have been prepared for general informational purposes only and are not intended to be legal advice. Please consult an attorney for legal advice pertaining to any particular legal matter. Use of and access to this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and Yepremyan Law Firm and any of its attorneys, employees, or associates.