By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.
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What is a contingency fee?
A contingency fee means the lawyer’s pay depends on the result. Instead of billing by the hour, the lawyer takes an agreed percentage of the settlement or verdict. If the case recovers nothing, the lawyer gets no fee. This lets injured people hire a lawyer without paying anything out of pocket at the start.
Hourly billing rarely works for an injured person. You may be out of work, the medical bills are piling up, and a lawsuit can take years. With a contingency fee, the lawyer carries that risk. The firm usually also pays the case costs as they come up and is reimbursed from the recovery.
The fee is paid at the end, out of the settlement check or judgment. You do not write the lawyer a check from your own account. The settlement money goes into the firm’s client trust account, the fee and costs are taken out as the agreement allows, medical liens are paid, and the rest goes to you.
At Beverly Law we work on contingency: no fees or costs unless we win. Our exact terms are in the written agreement we go over with you before you sign anything.
What percentage do personal injury lawyers take?
In practice, many personal injury agreements set the fee at around 33% of the recovery, often rising to around 40% if a lawsuit is filed or the case goes to trial. These are common market figures, not a legal rule and not Beverly Law’s rate. Outside medical malpractice in California, the percentage is negotiable.
Many agreements use a sliding scale. A lower percentage applies if the case settles before a lawsuit is filed, and a higher one applies once the case is in litigation, because the work, the expert costs and the risk all go up. Some agreements add another step if there is an appeal.
California makes the point directly. For cases outside the medical malpractice cap, the written agreement must state that the fee is not set by law and is negotiable between attorney and client (Cal. Bus. & Prof. Code § 6147(a)(4)). Washington requires the agreement to spell out the percentage or percentages that apply if the case settles, goes to trial or goes up on appeal (Wash. RPC 1.5(c)(2)).
A lower percentage is not always the better deal. Ask how the fee is figured, who pays the costs and what happens to those costs if the case is lost. For a car accident version of this question, see what percentage accident lawyers take.
What is the difference between attorney fees and case costs?
The attorney fee is the lawyer’s pay for the work. Case costs are out-of-pocket expenses needed to build the case, such as filing fees, medical record charges, deposition transcripts and expert witness fees. Costs are separate from the fee, and the agreement should say who pays them and when they are repaid from the recovery.
Typical case costs include:
- Court filing and motion fees
- Fees to serve the lawsuit on each defendant
- Charges from hospitals and doctors for records and bills
- Court reporter and transcript fees for depositions
- Expert witness fees, such as doctors, accident reconstruction engineers and economists
- Mediation fees
In a case that settles early, costs may be small. In a case that goes deep into litigation, expert fees alone can run into the tens of thousands of dollars. Washington requires the agreement to clearly tell the client about any expenses the client will owe whether or not the client wins (Wash. RPC 1.5(c)(2)). California requires the agreement to explain how costs will affect both the fee and the client’s recovery (Cal. Bus. & Prof. Code § 6147(a)(2)).
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Is the fee figured before or after costs are taken out?
It depends on the agreement. Some lawyers take their percentage from the gross recovery and then subtract costs. Others subtract costs first and take the percentage from what is left. The second method leaves more money for you. Washington requires the agreement to say which method applies, and California requires it to explain how costs affect your recovery.
The table below is an example only. It uses round numbers and a 33.3% fee to show how the order of the math changes what you take home. Your numbers will depend on your agreement, your costs and your liens.
| Example only: $100,000 settlement | Fee figured before costs | Fee figured after costs |
|---|---|---|
| Gross settlement | $100,000 | $100,000 |
| Case costs advanced by the lawyer | $5,000 | $5,000 |
| Amount the 33.3% fee is figured on | $100,000 | $95,000 |
| Attorney fee (33.3%) | $33,333 | $31,667 |
| Medical liens and bills paid from the settlement | $20,000 | $20,000 |
| Net to you | $41,667 | $43,333 |
In this example, the same case, the same fee percentage and the same costs produce a $1,666 difference. Ask the lawyer to show you a sample closing statement using their own agreement. In Washington, the lawyer must give you a written statement at the end showing the outcome, the money paid to you and how it was figured (Wash. RPC 1.5(c)(3)).
For worked examples at other amounts, see how much of a $25,000 settlement you keep, a $50,000 settlement and a $100,000 settlement.
What must a contingency fee agreement say in California, Texas and Washington?
All three states require a written contingency fee agreement. California lists specific items the contract must include and lets the client void an agreement that leaves them out. Texas requires the contract to be signed by both the attorney and the client. Washington requires the client’s signature and a clear explanation of how the fee and expenses work.
California. Under Bus. & Prof. Code § 6147, the lawyer must give you a signed copy of the agreement when it is made. The contract must state the fee rate, how costs and disbursements affect the fee and your recovery, whether you could owe the lawyer anything for related matters the agreement does not cover, and either that the fee is negotiable or, in medical malpractice cases, that the rates in § 6146 are the maximum. If the lawyer does not follow these rules, you can void the agreement, and the lawyer is then limited to a reasonable fee (§ 6147(b)).
Texas. A contingent fee contract for legal services must be in writing and signed by the attorney and the client (Tex. Gov’t Code § 82.065(a)). The same statute lets a client void a contract that was obtained through barratry, meaning illegal solicitation of clients (§ 82.065(b)).
Washington. RPC 1.5(c) requires a writing signed by the client that states how the fee is determined, the percentages for settlement, trial or appeal, which expenses come out of the recovery, and whether expenses are deducted before or after the fee is calculated.
Are fees capped in California medical malpractice cases?
Yes. California sets a maximum contingency fee in claims against health care providers for professional negligence. The current limits are 25% of the recovery if the case settles before a lawsuit or arbitration demand is filed, and 33% after that. A lawyer can ask the court or arbitrator for more if the case is tried.
The limits are in Bus. & Prof. Code § 6146, which was rewritten as part of the 2022 MICRA changes (AB 35). The older version used a sliding scale based on the size of the recovery. The current version uses two tiers. A higher fee is possible only by motion in a case that is tried, and the lawyer must show good cause. The fee agreement in a medical malpractice case must also tell you that these rates are the maximum and that you can negotiate a lower rate (§ 6147(a)(5)).
Texas and Washington do not have a California-style statutory percentage cap for these cases. Their written-agreement rules described above still apply.
What else comes out of a personal injury settlement?
Besides the attorney fee and case costs, the settlement usually has to pay any medical liens. These can include hospital liens, doctors who treated you on a lien, your health insurer, Medi-Cal or Medicare. A good lawyer negotiates those balances down where possible, which can matter as much as the fee percentage.
Two settlements of the same size can leave very different amounts in your pocket depending on the liens. Ask any lawyer you interview how they handle lien reductions and whether that work is included in the fee. Our page on medical liens after a car accident explains the common types.
Questions to ask before you sign
Before you sign, ask what percentage applies at each stage, whether the fee is figured before or after costs, who pays costs if the case is lost, how liens are handled, and who will actually work on your case. Get the answers in the written agreement, and keep your signed copy.
- What is the percentage before a lawsuit, after filing and at trial?
- Is the percentage taken before or after costs are deducted?
- Do I owe the costs if we lose?
- Will you try to reduce my medical liens, and is that included?
- Who will handle my case day to day, and how often will I get updates?
- What happens to the fee if I change lawyers later?
If you are still deciding whether you need a lawyer, read do I need a personal injury lawyer and how to choose a personal injury lawyer. If you already have a lawyer and are unhappy, see can I fire my personal injury lawyer.
To talk with our Los Angeles personal injury lawyers about your case, call (310) 552-6959. The consultation is free.
Common questions
Do I pay anything if I lose my personal injury case?
Under a contingency agreement you owe no attorney fee if there is no recovery. Case costs are a separate question. Some agreements say the firm absorbs costs if the case is lost, and others say the client still owes them. Read that clause carefully, and in Washington the agreement must tell you plainly which expenses you owe either way.
Can I negotiate a personal injury lawyer’s percentage?
Yes. In California, outside medical malpractice cases, the agreement must say the fee is not set by law and is negotiable. Lawyers may agree to a lower rate on a case with clear liability and large damages. Weigh the percentage against the lawyer’s trial experience and how costs and liens are handled.
Does the fee go up if my case goes to trial?
Often, yes. Many agreements charge a higher percentage once a lawsuit is filed or once trial preparation begins, because the work and risk increase. Washington requires the agreement to list the percentages for settlement, trial and appeal. Look for the exact trigger point in your agreement, such as filing the complaint or a set number of days before trial.
Is a free consultation really free?
At most personal injury firms, yes. The first meeting is free, and you owe nothing unless you sign a fee agreement and the case later recovers money. Use the meeting to ask about the fee, costs, liens and who will work on your case.
How much does a car accident lawyer cost compared to other injury cases?
The fee structure is usually the same contingency model for car crashes, truck crashes, falls and other injury claims. What changes is the cost of the case. Truck and medical cases often need more experts. See our page on how much a car accident lawyer costs for crash-specific details.
What does Beverly Law charge?
Beverly Law works on a contingency fee: no fees or costs unless we win. The percentage and how costs are handled are set out in the written agreement we review with you before you sign. Call (310) 552-6959 for a free consultation.
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Related pages
How much does a car accident lawyer cost? · What percentage do accident lawyers take? · How much of a $25,000 settlement do I keep? · How much of a $50,000 settlement do I keep? · How much of a $100,000 settlement do I keep? · Medical liens after a car accident
Sources
Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 8, 2026.