What is a typical contingency fee agreement for a law firm to represent a client in California state court?

Answer 1

* This is for information only and you should consult a lawyer before relying on anything on the internet. Legal fees are not set by law in California, although in some cases such as Class Actions, the legal fees may be limited to no more than a certain percentage. A suit against a health care provider has specific limits, as set forth in Business and Professions Code Section 6146, which go from a high of 40% of the first $50,000 recovered, down to 15% of the amount recovered in excess of $600,000. There are lots of specific exceptions like this. The Business and Professions Code, as well as the Rules of Professional Conduct, govern legal fee agreements. A written agreement is required when the lawyer is going to represent a client and the fee could be anticipated to be $1,000 or more. The fee agreement must contain a number of disclosures. (See California Business and Professions Code §§6146-6149.5). Now, while there is no set fee, a lot of lawyers will charge 33% contingency before trial, and 40% if the case goes to trial. Some charge more, some less. Hourly rates for California lawyers go from about $200 to $1,000 per hour, depending on experience, the size of their firm, and other factors. Take note specifically of B&P Section 6147(a), reproduced below: 6147. (a) An attorney who contracts to represent a client on a

contingency fee basis shall, at the time the contract is entered

into, provide a duplicate copy of the contract, signed by both the

attorney and the client, or the client's guardian or representative,

to the plaintiff, or to the client's guardian or representative. The

contract shall be in writing and shall include, but is not limited

to, all of the following:

(1) A statement of the contingency fee rate that the client and

attorney have agreed upon.

(2) A statement as to how disbursements and costs incurred in

connection with the prosecution or settlement of the claim will

affect the contingency fee and the client's recovery.

(3) A statement as to what extent, if any, the client could be

required to pay any compensation to the attorney for related matters

that arise out of their relationship not covered by their contingency

fee contract. This may include any amounts collected for the

plaintiff by the attorney.

(4) Unless the claim is subject to the provisions of Section 6146,

a statement that the fee is not set by law but is negotiable between

attorney and client.

(5) If the claim is subject to the provisions of Section 6146, a

statement that the rates set forth in that section are the maximum

limits for the contingency fee agreement, and that the attorney and

client may negotiate a lower rate.

(b) 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.

(c) This section shall not apply to contingency fee contracts for

the recovery of workers' compensation benefits.

(d) This section shall become operative on January 1, 2000. (see related link)