A contingency fee is the most common fee arrangement in personal injury, employment, and lemon law cases. Under a contingency fee agreement, you pay nothing out of pocket — the attorney's fee is a percentage of the compensation recovered for you. If there is no recovery, you owe no attorney fees.
The Azizi Firm handles all cases on a contingency fee basis. We believe access to justice should not depend on your ability to pay upfront legal fees.
A contingency fee is an arrangement in which the attorney's fee is contingent on the outcome of the case. You pay no upfront retainer or hourly fees. Instead, if and when your attorney recovers compensation for you — through a settlement or a judgment — the attorney receives an agreed-upon percentage of that recovery as their fee. If the attorney does not recover any compensation for you, you owe no attorney fees. This arrangement aligns the attorney's interests with yours: the attorney is motivated to maximize your recovery because their fee is directly tied to the outcome. Contingency fees make legal representation accessible to people who could not afford to pay hundreds of dollars per hour for legal services.
Contingency fee percentages vary depending on the type of case, its complexity, the stage at which it resolves, and the attorney's experience. For personal injury cases, the standard contingency fee in California typically ranges from 33.33% (one-third) to 40% of the recovery. The percentage may increase if the case goes to litigation or trial, reflecting the additional work and risk involved. For employment cases, fees commonly range from 33.33% to 45%, with statutory fee-shifting provisions often allowing the attorney to recover fees from the employer separately. For lemon law cases, the manufacturer is required to pay the consumer's attorney fees by statute, meaning the consumer's recovery is not reduced by attorney fees. The specific percentage should be set forth clearly in your written fee agreement.
Even with a contingency fee, there are costs associated with pursuing a case. These include: court filing fees, deposition costs, expert witness fees, medical record retrieval costs, investigation expenses, and other out-of-pocket expenditures necessary to litigate the case. Practices vary among law firms. Some firms advance all costs during the case and deduct them from your recovery at the end (along with the attorney fee). Others may require you to pay certain costs as they arise. It is critical to clarify how costs will be handled before signing a fee agreement. At The Azizi Firm, we generally advance all case costs and deduct them from your recovery only if we win, meaning you owe nothing out of pocket during the case. You should always ask how costs are handled and whether costs are deducted before or after the attorney fee percentage is calculated.
Contingency fee arrangements offer several significant advantages for clients. No upfront cost means you can pursue justice regardless of your financial situation. Alignment of interests between attorney and client ensures your attorney is financially motivated to achieve the best possible outcome for you. Risk sharing means the attorney bears the financial risk — if the case is unsuccessful, you do not pay attorney fees. Access to experienced counsel who might otherwise be unaffordable becomes possible. You can focus on your recovery rather than worrying about mounting legal bills. And there is no incentive for your attorney to drag out a case unnecessarily to bill more hours, unlike in hourly billing arrangements. For these reasons, contingency fees are considered the most consumer-friendly fee model.
Studies consistently show that represented parties recover substantially more than unrepresented parties, even after deducting attorney fees. Insurance companies and employers have experienced legal teams working to minimize their payouts. When you are unrepresented, they know you lack the legal knowledge to properly evaluate your claim, the leverage to negotiate effectively, and the ability to take the case to trial if necessary. An experienced attorney knows the true value of your case, understands how to gather and present compelling evidence, can negotiate from a position of strength, and can credibly threaten litigation. In virtually all cases, the additional compensation an attorney recovers more than offsets the contingency fee, meaning you end up with more money in your pocket than if you had handled the case yourself.
Before signing a contingency fee agreement, review it carefully and ask questions about anything you do not understand. Key items to look for: the exact percentage the attorney will take and whether it increases at different stages (e.g., if a lawsuit is filed or if the case goes to trial); how costs and expenses will be handled — who advances them, whether you owe costs if the case is unsuccessful; whether the percentage is calculated before or after costs are deducted (this makes a significant difference); whether the attorney will handle an appeal if necessary and what the fee would be for an appeal; what happens if you discharge the attorney before the case concludes; any minimum fees or flat fees in addition to the percentage; and that all terms are in writing. Never rely on oral promises — everything should be documented in a signed agreement.
Under a pure contingency fee arrangement, if your case is unsuccessful and no recovery is obtained, you owe no attorney fees. However, the question of costs is separate and should be addressed in your fee agreement. Some firms advance costs but specify that you remain responsible for them even if the case is lost, while other firms (including The Azizi Firm) absorb the costs if the case is unsuccessful, meaning you owe nothing. Additionally, in certain types of cases (such as FEHA employment claims), the losing party may be ordered to pay the prevailing party's costs, though this is rare for plaintiffs in employment cases. Always clarify in writing what happens with costs if the case is unsuccessful before signing a fee agreement.
At The Azizi Firm, we handle all cases on a contingency fee basis. You pay nothing upfront and nothing unless we win. Contact us for a free, no-obligation consultation. Call (858) 829-3962.
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