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How contingency fees work
With a contingency fee, you do not pay the lawyer by the hour. The fee is a share of the settlement or verdict instead. If there is no recovery, the agreement usually says no fee is owed. Some agreements use one percentage for the whole case, and others use a higher percentage if the case goes into a lawsuit or to trial.
Ask about costs too, because costs are separate from the fee. They include things like filing fees, medical records, depositions and experts. The agreement should explain whether costs come out before or after the fee is calculated, and whether you owe costs if the case is lost. Here is how it works at Beverly Law. You owe no fees or costs unless we win.
What California requires in the fee agreement
Under California law, a contingency fee agreement with a lawyer must be in writing. It must state the percentage, explain how costs and expenses are handled, and say that the fee is not set by law and can be negotiated between you and the lawyer. You should get a signed copy of the agreement to keep with your claim papers.
That last point matters. No fixed percentage for car accident cases is written into California law. The number in your agreement is what you and the lawyer agreed to. Read the whole agreement before you sign, including what happens if you change lawyers or the case settles early, and ask for an explanation of anything you do not follow.
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How the fee affects what you take home
The fee is only one of the deductions from a settlement. Case costs, medical liens and repayment requests from health plans or MedPay also come out before you get your share. To see the full picture, read how much of a settlement you keep. A written breakdown should list each amount so you can check it.
A lawyer’s work can also change the gross amount, for example by finding more insurance, answering fault arguments, or getting medical bills reduced. Hospital liens in California are limited to up to 50 percent of the money owed to you after prior liens, and other providers may agree to reductions. Ask any lawyer you meet how they handle medical liens.
What to do now
If you were hurt, get medical care first and keep every bill and record. Take photos of the scene and your injuries, write down witness names, and save all claim numbers. Do not sign a release or give a recorded statement to the other driver’s insurer before you talk with a lawyer, because either one can limit your claim.
When you talk with a lawyer, ask about the percentage, how costs work, and what happens if the case is lost. Ask for a copy of the agreement to read before you sign. A California injury lawsuit must generally be filed within two years, so make these calls early. See also how much a car accident lawyer costs.
- What percentage is the fee, and does it change if a lawsuit is filed?
- Are costs taken out before or after the fee?
- Do I owe costs if the case is lost?
- Can I get a copy of the agreement to read first?
Common questions
Is the lawyer’s percentage negotiable in California?
Yes. California law requires a contingency fee agreement to state that the fee is not set by law and is negotiable between the client and the lawyer. You can ask questions about the percentage and the costs before you sign. Get the final terms in writing and keep a signed copy.
Is the percentage taken before or after costs?
It depends on the agreement. Some agreements calculate the fee from the gross settlement, and others subtract costs first. California requires the agreement to explain how costs are handled, so the answer should be in writing. Ask the lawyer to walk you through how the numbers would work in your case.
Do I pay anything if we lose?
That depends on your written agreement. Many contingency agreements say no fee is owed if there is no recovery, and some also cover costs. Our terms are simple. You owe no fees or costs unless we win. Read the costs section of any agreement carefully before you sign it.
Do I even need a lawyer for my accident?
Not every case needs one. A lawyer is more useful when you were hurt, when fault is disputed, when the other driver has low limits, or when the insurer is pushing you to settle fast. Read do I need a lawyer for a car accident to help you decide.
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Car and truck accident lawyer — Beverly Law
If you were hurt in a car or truck crash in California and Washington, talk to a personal injury attorney. Free, confidential, English or Spanish. You owe no fees or costs unless we win.
Related pages
The insurance company made a lowball offer: how to respond · Should I accept the first settlement offer after a car accident? · How long does a car accident settlement take? · Is a car accident settlement taxable? · Car accident settlement with no injuries: what you can claim · All car and truck accident questions
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Important: This page is general information about California and Washington law, not legal advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Last reviewed: November 5, 2026.