Setareh Law
December 2, 2025
When you’re injured in an accident and facing mounting medical bills, the last thing you want to hear is that you need to pay thousands of dollars upfront just to speak with an attorney. The financial stress of recovery is overwhelming enough without adding legal fees to your immediate expenses, which is why most personal injury attorneys work on what’s called a contingency fee basis. This payment structure makes legal representation accessible to everyone, regardless of their financial situation, by tying attorney fees directly to the outcome of your case.
Understanding how contingency fees work helps you make informed decisions about your legal representation and sets clear expectations for your car accident or injury case. At Setareh Law, we’ve operated on a contingency fee basis throughout our decades of practice because we believe everyone deserves access to quality legal representation. Our team has recovered over $250 million for clients across California, and you only pay attorney fees if we successfully recover compensation for your injuries.
What Is a Contingency Fee Agreement?
A contingency fee agreement means your attorney only gets paid if you receive compensation through a settlement or court verdict. Instead of charging hourly rates or requiring upfront retainers, your lawyer agrees to take a percentage of your final recovery as payment for legal services. This arrangement aligns your attorney’s interests with yours because both of you benefit when the case results in maximum compensation.
The percentage your attorney receives typically ranges from 33% to 40% of your total recovery, depending on the complexity of your case and whether it settles before trial or requires litigation. California law regulates these percentages to ensure fairness, and your attorney must clearly explain all fee arrangements in writing before you sign an agreement. This transparency protects you from surprise charges and helps you understand exactly what to expect throughout your case.
Benefits of Contingency Fee Arrangements
The contingency fee structure offers several important advantages for injury victims. Most significantly, it removes financial barriers to legal representation. You don’t need savings or good credit to hire an experienced attorney, which means you can focus your limited resources on medical treatment and recovery rather than legal bills. This is particularly important for families already struggling with lost income due to injuries preventing work.
Contingency fees also motivate your attorney to pursue maximum compensation rather than settling quickly for convenience. When lawyers work on hourly billing, they get paid regardless of your case outcome, which can reduce their incentive to fight aggressively for top dollar. In contrast, contingency fee attorneys only profit when you profit, creating a partnership where your lawyer has strong motivation to build the strongest possible case and negotiate the highest settlement. This payment structure also shifts financial risk from you to your attorney. If your case doesn’t result in recovery, you don’t owe attorney fees. Your lawyer assumes the risk of investing time and resources into your case without guaranteed payment, which demonstrates their confidence in your claim’s merit. Most personal injury attorneys carefully evaluate cases before accepting them on contingency, so an attorney’s willingness to take your case on this basis signals they believe you have a strong claim.
What Expenses Are Separate From Contingency Fees?
While contingency fees cover attorney time and legal services, certain case expenses typically remain separate. Court filing fees, costs for obtaining medical records and police reports, fees for depositions and court reporters, charges for accident reconstruction professionals or medical consultants, and expenses for investigators or process servers are generally paid separately from attorney fees.
Some law firms advance these costs during your case and deduct them from your settlement when your case resolves. Others may require clients to cover costs as they arise, though this is less common. Your contingency fee agreement should clearly explain how your attorney handles case expenses, when they’re deducted, and whether you’re responsible for costs if your case doesn’t recover compensation.
Understanding the distinction between attorney fees and case costs helps you ask the right questions during initial consultations and compare offers from different law firms. Some attorneys work on what’s called a “true contingency” basis where they advance all costs and only recover those expenses if your case succeeds, while others have different cost structures.
How Settlement Distribution Works With Contingency Fees
When your case settles or you win at trial, the distribution of funds follows a specific order. First, any liens on your settlement get paid. Medical providers who treated you on a lien basis, health insurance companies that paid for your treatment, and government programs like Medicare or Medicaid that covered medical expenses may have legal rights to reimbursement from your settlement.
After satisfying liens, your attorney deducts their contingency fee percentage and reimbursement for case expenses they advanced. The remaining amount is your net recovery. For example, if you receive a $100,000 settlement, your attorney works on a 33% contingency fee, case costs totaled $5,000, and medical liens amount to $15,000, you would receive $47,000. The calculation works like this: $100,000 minus $33,000 attorney fee, minus $5,000 costs, minus $15,000 liens equals $47,000 to you.
Your attorney should provide a detailed settlement statement showing exactly how the funds are distributed before you accept any settlement offer. This transparency ensures you understand your net recovery and can make informed decisions about whether a settlement offer adequately compensates you for your injuries.
Questions to Ask About Contingency Fees
Before signing a contingency fee agreement, ask your potential attorney several important questions. What percentage do you charge, and does it increase if the case goes to trial? How do you handle case expenses, and am I responsible for costs if we don’t recover compensation? Will you reduce your fee percentage to increase my net recovery if possible? How do you negotiate reductions in medical liens to maximize my take-home amount? How often will you update me on case progress and settlement offers?
A reputable personal injury attorney welcomes these questions and provides clear, direct answers. The initial consultation is your opportunity to evaluate not just the attorney’s qualifications but also their communication style, transparency about fees, and commitment to your case.
Work With Setareh Law on a Contingency Fee Basis
The attorneys at Setareh Law have over 60 years of combined experience representing injury victims throughout California on a contingency fee basis. We believe quality legal representation should be available to everyone, not just those who can afford hourly billing rates. Our approach focuses on building strong cases, negotiating aggressively with insurance companies, and maximizing your net recovery by reducing medical liens whenever possible.
We maintain over 400 five-star reviews on Google because we prioritize clear communication about fees, case progress, and settlement offers. Our clients appreciate knowing exactly what to expect at every stage of their case. We operate eight office locations across California and offer home visits when traveling is difficult. Contact us today for a free consultation to discuss your case, and remember, you only pay if we get results.
