Contingency fees, compared with paying by the hour
Nearly every injury lawyer in California works on contingency, and the reason is not that it is more profitable. It is that the alternative would put representation out of reach of exactly the people who need it.
The two models
| Contingency | Hourly | |
|---|---|---|
| Paid when | Only out of a recovery | Monthly, regardless of outcome |
| If you lose | No fee | You still owe every hour billed |
| Who carries the risk | The firm | You |
| Who funds the case costs | Usually the firm, advanced | You, as they are incurred |
| Predictability | A known percentage of an unknown number | An unknown total at a known rate |
| Incentive | Aligned on outcome; the firm earns more if you do | Aligned on effort; the firm earns the same whatever happens |
A contested injury case can involve hundreds of hours. At any realistic hourly rate that is a bill most injured people could not pay — and they are, by definition, out of work and facing medical costs. Contingency exists because the alternative means only wealthy people can bring claims.
What the percentage is paying for
- Risk. Cases are lost, and the firm absorbs the whole cost when that happens.
- The cost advance. Filing fees, records, deposition transcripts and expert witnesses are substantial and are generally fronted by the firm.
- Time, over years. Paid at the end, if at all.
- Negotiating position. An insurer behaves differently toward a claimant who can credibly file suit.
California requires a contingency fee agreement to be in writing, signed, and to state the rate and how costs are handled, under Business and Professions Code section 6147. Read it. A firm that does not want you to read it is telling you something.
Questions people ask
What if I lose? Do I owe anything?
No fee, because there was no recovery. Whether you owe advanced case costs depends on the agreement — many firms, including ours, absorb them. That is a specific question worth asking of any firm before signing, because practice differs.
Is the percentage negotiable?
Sometimes, and it can vary by stage — commonly lower if a case resolves before suit is filed and higher if it goes to trial, reflecting the work and risk. In a minor's case the court sets the fee rather than the agreement.
Could I pay hourly instead?
Almost nobody offers it in injury work, and for most people it would be a bad idea even if they did. You would carry the entire risk and fund the case while out of work.
Related
Reviewed October 2026 by Simon Aziz Budhwani, Esq., the attorney responsible for this site. Legal statements here name the California code section they rely on, so you can check them rather than trust them. This is information about the law in general, not advice about your situation.
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