Contingency Fee Agreements Explained: How PI Lawyers Get Paid

Most personal injury attorneys work on a contingency fee basis: you pay no upfront fees or hourly charges, and the attorney collects a percentage of your settlement or verdict only if you win. If you lose, you owe the attorney nothing in legal fees.

What Percentage Do Personal Injury Lawyers Take?

The standard contingency fee in California personal injury cases is 33.3% (one-third) if the case settles before a lawsuit is filed, and often 40% if a lawsuit is filed and the case goes into litigation. Some attorneys charge less for straightforward cases or more for highly complex ones. The fee percentage must be in writing under California Business and Professions Code § 6147.

What About Case Expenses?

Contingency fees cover attorney time — but not case costs. Expenses like filing fees, expert witness fees, medical record retrieval, and deposition costs are typically advanced by the attorney and deducted from your settlement at the end. Make sure your retainer agreement specifies whether expenses are deducted before or after the attorney fee is calculated — this can significantly affect your net recovery.

How to Read a Contingency Fee Agreement

Before signing, confirm the agreement answers these questions:

• What is the percentage — and does it change if a lawsuit is filed?
• Are costs deducted before or after the fee is calculated?
• Who is responsible for costs if you lose?
• What happens if you fire the attorney mid-case?

Our guide on hiring a personal injury lawyer covers what to look for before signing any retainer agreement.

Frequently Asked Questions

Do I pay anything if I lose my personal injury case?

You owe no attorney fees if you lose. However, you may still owe case costs (filing fees, expert fees, etc.) depending on your agreement. Always clarify this before signing.

Is 33% a standard contingency fee?

Yes, one-third (33.3%) is the most common contingency fee for pre-litigation personal injury settlements in California. It can rise to 40% if a lawsuit is filed. Some attorneys negotiate lower rates for high-value or straightforward cases.

Can I negotiate the contingency fee?

Yes. Contingency fees are negotiable, especially for cases with clear liability and significant damages. High-value cases ($500K+) sometimes see fees of 25–28%. Always ask.