What are the most common terms in contingency fee contracts?
There is no standard contingency fee contract. I have heard of contingency fee contracts with an attorney’s fee of 15% of the recovery, all the way up to 60% for more difficult cases. [If this sounds unfair to you, remember that the attorney often risks all or part of his life savings on contingency cases, and the client probably could not get anyone else to take the case on lesser terms, and the client likely was not able to pay hourly for representation.] Most personal injury cases which are done on a contingency basis have a contingency fee of one-third up until a date close to the trial, and 40% thereafter. Many attorneys negotiate a separate contingency fee for appeals. Medical malpractice actions have their own contingency fees in California, which are governed by statute. Any costs advanced by the attorney usually come out of the client’s portion of the recovery when the case settles. Some attorneys require their clients to pay all or part of costs; some advance all costs. This
