A lower contingency fee can look like a better deal. What often matters more is what you take home after the attorney fee, case costs, and medical bills or liens come out. Large costs deducted at the end can shrink a recovery — and they can make up the difference you thought you were saving on the percentage.
Before you sign, ask how case costs work. The questions below are a starting point. They are not a comparison of any law firm, and they are not a quote of anyone’s fees or costs.
Tafreshi Law Group reviews every case. A review is free. It is not a promise that we will represent you or that you will recover compensation. If you were hurt in a crash, see our Orange County car accident page. You can also review selected matters on our case results page. Si prefiere leer en español, vea nuestra página de abogado de accidentes de auto. Our office staff speaks Spanish and Farsi.
Before You Sign, Did They Explain…?
Check any that were not explained in writing. Checking one or more does not mean you automatically have a claim, and it does not mean a particular agreement is unfair. It does mean it is reasonable to pause and ask.
If any of these were not explained in writing, text (949) 776-8964 or call (949) 989-2511. We review every case. Riverside and Inland Empire callers can also use (951) 583-1900.
What are case costs, and how are they different from the attorney fee?
The attorney fee is what you agree to pay the lawyer for legal work, often a percentage of a recovery. Case costs are separate out-of-pocket expenses of pursuing the claim. They can include filing fees, medical records, medical or technical witnesses, depositions, and investigators. Both can be deducted from a recovery, so both affect what you take home.
Does it matter whether costs come out before or after the fee is calculated?
Yes. Some agreements calculate the attorney fee on the full recovery and then subtract costs. Others subtract costs first and calculate the fee on what remains. The same percentage and the same costs can leave you with different amounts, depending on that order. Section 6147 requires the written agreement to say how costs affect the fee and your recovery.
These are made-up figures with round numbers. They are not this firm’s fees or costs, and they are not a quote of any other firm’s fees or costs. They do not describe any real case.
Assume a recovery of $100,000, an example fee of 30%, and example case costs of $10,000. This example leaves out medical bills and liens, which can also reduce what you take home.
- Attorney fee: $30,000
- Case costs: $10,000
- You take home: $60,000
- Case costs: $10,000
- Amount left: $90,000
- Attorney fee (30% of $90,000): $27,000
- You take home: $63,000
Same percentage. Same costs. A $3,000 difference in what you take home, based only on the order. That is why the written agreement should say how costs are handled.
Who pays the case costs if there is no recovery?
That depends on the written agreement. Some firms advance costs and you do not repay them if there is no recovery. Other agreements make the client responsible for costs even if the case is not successful. Ask this directly and get the answer in the contract. Do not assume costs are treated like attorney fees.
Can I ask for a written list of typical costs and how they are approved?
Ask for a written estimate of costs that often come up in a case like yours, including filing fees, records, outside witnesses, depositions, and investigators. Ask how new costs are approved as the case moves forward, and whether you will be told before a large expense is incurred. A list is an estimate, not a promise of the final amount.
Will I get an itemized closing statement or settlement breakdown?
Ask for a written, itemized breakdown before any funds are disbursed. It should show the total recovery, the attorney fee, each case cost, any medical bills or liens, and the amount you take home. California lawyers must account for client funds. Read that statement carefully and ask about any line you do not understand before signing a release.
Medical bills and liens can change what you take home as much as the fee or the costs. Ask how those bills will be negotiated or reduced, and make sure each one appears on the closing statement. A review of your case is not a promise about what can be reduced.
What about administrative or in-house charges?
Some agreements include charges beyond out-of-pocket costs, such as in-house copying, postage, file setup, or administrative fees. Ask whether those charges apply, how they are calculated, and whether they are listed separately from court fees, records, outside witnesses, and other third-party costs. If they will be deducted from a recovery, they should be spelled out in the written agreement.
What must a California contingency fee agreement include?
Under Business and Professions Code section 6147, a contingency fee contract must be in writing and signed by both the attorney and the client. You must receive a signed copy when you enter into the contract. It must state the agreed fee rate and how disbursements and costs will affect the fee and your recovery.
The agreement must also say to what extent, if any, you could be required to pay the attorney for related matters not covered by the contingency contract. In a typical personal injury case, it should state that the fee is not set by law but is negotiable between attorney and client. If the agreement does not comply with section 6147, it is voidable at your option, and the attorney may then collect a reasonable fee.
Will the fee change if the case goes to trial?
Ask whether the percentage stays the same or increases if a lawsuit is filed or the case goes to trial, and have that answer written in the agreement. A stepped fee is not unusual, but you should see the terms in writing before you sign. This article does not quote any firm’s fee.
Frequently Asked Questions
Is a lower contingency fee always a better deal for me?
Not necessarily. The percentage is only one part of the picture. Case costs, whether they come out before or after the fee, administrative charges, and medical bills or liens all affect what you take home. A lower fee with high costs can leave you with less than you expected. Ask about the net, not only the percentage.
Who will actually handle my case and return my calls?
Ask who will do the day-to-day work, who you should call or text with questions, and how quickly you can expect a response. At Tafreshi Law Group, you can ask for Suzannah Tafreshi or our intake team. Our office staff speaks Spanish and Farsi. You can call (949) 989-2511 or text (949) 776-8964.
Do you speak my language?
Our office staff speaks Spanish and Farsi. You can call or text us in English or Spanish. If you prefer to read in Spanish, see our página de abogado de accidentes de auto.
Can I change lawyers after I sign?
In California, you generally have the right to change lawyers. The first attorney may have a claim for a reasonable fee for work already performed, often through a lien against a later recovery. Ask how a transition would work, and get any new agreement in writing, with a signed copy for you, as section 6147 requires.
What does it cost to have you review my case?
A consultation with us is free. You can call (949) 989-2511 or text (949) 776-8964. Reviewing your case does not create an attorney-client relationship and does not mean we will represent you. We review every case.
Have questions about costs before you sign? We’ll take a look.
Call or text Tafreshi Law Group. Ask for Suzannah Tafreshi or our intake team. Our office staff speaks Spanish and Farsi. We review every case. Riverside and Inland Empire callers can also use (951) 583-1900.
- Fountain Valley office: 18837 Brookhurst St, Ste 207, Fountain Valley, CA 92708
- Lake Forest office: 22600 Lambert St, Ste 1501, Lake Forest, CA 92630
- Riverside office: 4121 Brockton Ave, Ste 101, Riverside, CA 92501 · (951) 583-1900
This article is general information about California law, not legal advice. The dollar figures in the example are hypothetical. They are not a quote of any firm’s fees or costs, and they are not a prediction of any result. Reading this article, contacting us, or having us review your case does not create an attorney-client relationship. A review is not a promise that we will represent you or that you will recover compensation.
