California Contingency Fee Agreement Rules in Personal Injury Cases

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    California Requires a Signed, Written Contingency Agreement That Says the Fee Is Negotiable

    A contingency fee agreement for a California injury case has to be in writing, signed by you and the lawyer, with a signed copy given to you.

    Business and Professions Code § 6147 requires it to state the fee percentage and how case costs affect both the fee and your recovery.

    It must also say the fee is not set by law and can be negotiated, except in malpractice cases, where the law sets the maximum.

    California contingency fee agreement attorney

    A malpractice fee is capped at 25 percent of a recovery settled before any lawsuit and 33 percent after one is filed.

    An agreement that leaves out a required term can be voided at your option, which limits the lawyer to a reasonable fee.

    If you have questions about an agreement before you sign, call (888) 713-6653 at no charge.


    The Terms § 6147 Requires in Every California Contingency Agreement

    Section 6147 lists what a contingency fee contract has to contain, and it requires that a duplicate signed by both lawyer and client be given to the client when the contract is made.[1]

    1. The contingency fee rate the lawyer and client agreed on
    2. How costs and disbursements affect the fee and the client's recovery, including whether costs come out before or after the fee is figured
    3. What the client could be asked to pay for related matters the contract does not cover
    4. A statement that the fee is not set by law and is negotiable, for any claim other than medical malpractice
    5. For a malpractice claim, a statement that the rates in Business and Professions Code § 6146 are maximums and a lower rate can be negotiated

    The penalty for leaving something out is written into the statute. "Failure to comply with any provision of this section renders the agreement voidable at the option of the plaintiff, and the attorney shall thereupon be entitled to collect a reasonable fee." Workers' compensation fee agreements are handled under different rules and are not covered.

    The cost terms deserve the closest reading, because they decide how much of the settlement reaches you more than the percentage itself often does.

    Is a Personal Injury Lawyer's Percentage Negotiable in California?

    Yes, outside medical malpractice. California requires the agreement to say so in writing because there is no legal standard rate for a personal injury case.

    Many agreements set one percentage if the case settles before a lawsuit and a higher one if it has to be litigated or tried. That step-up, and the point at which it applies, should be spelled out in the agreement rather than left to interpretation. The same is true of what happens to the fee if the case goes to an appeal.

    Negotiation covers more than the number. Who pays for experts if the case is lost, whether costs are taken out before the fee is calculated, and whether the lawyer can withdraw are open to negotiation too, and worth asking about.

    An agreement you understand before signing is one you will not have to argue about at the end of the case.

    Medical Malpractice Fees Capped at 25 and 33 Percent Under § 6146

    Malpractice is the one California injury practice where the law sets the maximum fee. AB 35 rewrote Business and Professions Code § 6146 effective January 1, 2023.[2]


    How the malpractice case resolves Maximum contingency fee
    Settlement and release signed by all parties before a complaint or arbitration demand is filed 25 percent of the net recovery
    Settlement, arbitration award, or judgment after filing 33 percent of the net recovery
    Case tried or arbitrated to a decision A higher fee only if the court or arbitrator finds good cause on the lawyer's motion

    "Recovered" means the net amount after the costs of the case are deducted, and the client's medical expenses and the lawyer's office overhead do not count as costs. The limits apply to adults, children, and incompetent persons alike, and they apply in Kaiser arbitrations as well as in court.

    The same AB 35 changes raised the cap on malpractice damages, set out on our page about California's 2026 MICRA figures.

    How Costs, Fees, and Liens Come Out of a California Settlement

    Whether costs come out before or after the fee is calculated changes your share. Take an illustration, not a quote: a $300,000 settlement, $15,000 in case costs, a one-third fee, and $40,000 in medical liens.


    • Fee figured on the gross recovery. The fee is $100,000, costs are $15,000, liens are $40,000, and you receive $145,000.
    • Fee figured after costs. Costs come off first, leaving $285,000. The fee is $95,000, liens are $40,000, and you receive $150,000.

    In a malpractice case, the second method is required by § 6146. In other cases, the agreement decides, which is why § 6147 requires it to explain how costs affect the fee. Reducing the liens, under the limits on our page about hospital and Medi-Cal liens, often moves the final number as much as the fee method does.



    What the Withdrawn 2026 Initiative Would Have Done to Injury Fees

    In 2026, a proposed constitutional amendment backed by Uber would have limited accident victims' recovery of medical expenses and the fees their lawyers could charge, framed as victims keeping at least 75 percent of a recovery. It was certified eligible for the November ballot on June 17, 2026, and its proponents withdrew it on June 25.[3]

    The law signed the same day, SB 623, contains no fee cap. It limits how lien-based medical bills are valued in claims against rideshare and delivery companies for crashes from 2027 on, and it bars certain referral and lien-reduction fee arrangements, as our page on SB 623 and California rideshare claims explains.

    For a California injury case today, outside malpractice, the fee is still whatever the written agreement says, within the rules on this page.

    Splitting a Fee Between Two Firms Under Rule 1.5.1

    When two law firms work on one case, or when a client changes lawyers, the fee may be divided between them. California Rule of Professional Conduct 1.5.1 allows that only when three conditions are met.[4]


    • The lawyers have a written agreement to divide the fee
    • The client consents in writing after a full written disclosure that a division will be made, who the lawyers are, and the terms
    • "The total fee charged by all lawyers is not increased solely by reason of the agreement to divide fees"

    The last condition protects you. A second firm joining the case cannot raise what you pay. When a lawyer is discharged, that lawyer's claim is limited to the reasonable value of the work, as our page on changing injury lawyers in California explains.

    The Cost Disclosure § 6157.2 Requires in Contingency Fee Advertising

    Since January 1, 2026, Business and Professions Code § 6157.2 requires any lawyer advertisement that mentions a contingency fee to say whether the client will be responsible for costs the lawyer advanced if there is no recovery. It also bars guarantees of results and promises of "immediate cash or quick settlements."[5]

    The rule gives you a question to ask any firm. "No fee unless we win" says nothing about costs, and in a case with experts, the costs can run into tens of thousands of dollars. If the answer is that you owe those costs when the case is lost, that belongs in the decision.

    A lawyer who answers the cost question plainly before you sign is telling you how the rest of the case will be handled.

    Six Questions to Ask Before Signing an Injury Lawyer's Agreement


    • What is the percentage, and does it change if a lawsuit is filed or the case is tried?
    • Are costs taken out before or after the fee is calculated?
    • Who pays the costs if the case is lost?
    • Who will work on the case, and who will return your calls?
    • Can you approve or reject any settlement offer yourself? (You can; the decision to settle belongs to the client.)
    • What happens to the fee if you change lawyers?

    A clear answer to each of these, in writing where it matters, is the best protection a client has. If you already have a lawyer and an offer, our page on getting a second opinion on a settlement offer covers what a fresh review looks at.



    California Contingency Fee FAQ

    What must a California contingency fee agreement include?

    Under Business and Professions Code § 6147, it must be in writing, signed by both lawyer and client with a copy to the client, and state the fee rate, how costs affect the fee and the recovery, what the client may owe for related matters outside the contract, and that the fee is negotiable, or, in a malpractice case, that the statutory rates are maximums.

    What happens if my fee agreement does not follow § 6147?

    The agreement is voidable at your option. If you void it, the lawyer is entitled to a reasonable fee instead of the contract percentage.

    How much can a lawyer charge in a California medical malpractice case?

    No more than 25 percent of the net recovery when a settlement and release are signed before a lawsuit or arbitration demand is filed, and 33 percent after. A higher fee requires a motion and a finding of good cause after a trial or arbitration.

    Is the contingency fee percentage negotiable in California?

    Yes, in every injury case except malpractice, where the statute sets maximums that can still be negotiated lower. California requires the agreement to state that the fee is not set by law and is negotiable.

    Do I pay case costs if I lose?

    It depends on the agreement, which Business and Professions Code § 6147 requires to explain how costs are handled. California also requires a firm advertising a contingency fee to say whether a client owes advanced costs when there is no recovery.

    Did California pass a cap on personal injury attorney fees in 2026?

    No. The proposed ballot measure that would have limited fees was withdrawn on June 25, 2026, and SB 623, signed the same day, contains no fee cap. Only malpractice fees are capped, under § 6146.


    Read a California Contingency Agreement Line by Line Before You Sign

    Every term in the agreement, from the cost method to the step-up, is easier to settle before the signature than after the settlement.

    A person trusting a lawyer with a serious injury deserves to know the percentage, the costs, and who decides when to settle, in plain words.

    Lawsuit Legal is happy to explain these fee rules in plain words.

    If an agreement in front of you raises questions, you can call (888) 713-6653 at no cost.

     

     

     

     

     

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