What Is Contingency?
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● The No Win No Fee Concept
> What Does Contingency Fee Basis Mean?
> How Does a Contingency Fee System Work?
> What Are the Benefits of Contingency Fees?
> What Are Some Of The Costs The Lawyer Pays On My Behalf?
> Most Cases Are Not Contingency Fee Friendly
> Why It's Important To Make Sure Lawyers Are Vetted?
> Where Can You Find a Lawyer Who Works on a Contingency Fee Basis?
What Does Contingency Fee Basis Mean?
If you hire a California attorney on a contingency basis, you agree to pay for their services only if they successfully win your case. This payment structure protects claimants who may not have the financial resources to cover legal expenses upfront. It allows anyone—regardless of income or economic status—to obtain competent legal representation without incurring debt. Attorneys specializing in personal injury, medical malpractice, sexual harassment, and employment law commonly use this arrangement.
In general, law firms that work on a contingency fee basis do not charge any fees upfront. You won’t need to pay a retainer, and your attorney typically covers all necessary case-related costs, such as investigations, court filing fees, and expert witness expenses. Once your case is successfully resolved, the attorney will recover those costs and their fees from the awarded settlement or judgment.
How Does a Contingency Fee System Work?
You will only pay a contingency fee attorney at the end of your case—and only if they successfully secure a financial recovery on your behalf. You won’t need to pay out of pocket. Instead of charging hourly rates or upfront fees, your attorney will receive a percentage of the settlement or judgment as their service fee. The percentage varies depending on the law firm and the nature of your case.
The most common contingency fee rate is 33.33%, or roughly one-third of the total recovery. However, if the attorney assumes greater financial risk by accepting your case, the percentage may be higher. Many firms also charge a higher rate if your case proceeds to trial, as trials require significantly more time, preparation, and resources than settlements.
Before your case begins, you and your attorney will agree on the specific percentage and terms. Because each law firm operates differently, be sure to discuss all potential fees and litigation costs in advance to avoid misunderstandings later.
What Are the Benefits of Contingency Fees?
The most obvious advantage of hiring a lawyer on a contingency fee basis is affordability—you can pursue your case without worrying about upfront legal costs. However, an equally important benefit is having highly motivated representation. Because your attorney is only paid if you win, their compensation directly depends on the amount recovered on your behalf. This creates a strong incentive for your lawyer to secure the maximum possible compensation for your case and damages.
What Are Some Of The Costs The Lawyer Pays On My Behalf?
In some cases—regardless of whether you win or lose—you may still be responsible for certain court-related expenses, such as filing fees, deposition costs, and other administrative charges.
Attorneys who work on a contingency fee basis often advance these costs on behalf of their clients. Common expenses covered by contingency-based law firms may include:
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Investigation and analysis of the accident scene by experts
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Accident re-creation and preparation of trial exhibits
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Obtaining medical records and police reports
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Fees for expert witnesses
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Deposition and transcript costs
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Court filing fees and related charges
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Postage and document delivery costs
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Discovery-related expenses for gathering evidence
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Locating witnesses and issuing subpoenas
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Ongoing communications with all parties involved in the case
These costs are typically reimbursed to the attorney from the settlement or judgment once the case is successfully resolved.
Most Cases Are Not Contingency Fee Friendly
Let’s say you can’t pay your rent, and your landlord files an eviction lawsuit, giving you a 30-day notice to vacate. One evening, you see a TV commercial from an attorney claiming, “You don’t pay unless we win.”
You call that attorney for help, but he immediately declines your case. You’re left wondering, “Why won’t he take my case on contingency?” The reason is simple—there’s no financial recovery available from which the attorney could be paid.
Contingency fee arrangements are only practical when there’s a potential for a monetary settlement or judgment. In cases like evictions, divorces, or business disputes, there’s usually no payout at the end, so the attorney would have no source of compensation. Lawyers who work on contingency generally accept cases where an insurance company or liable party is expected to pay damages, such as personal injury or employment law claims.
Attorneys don’t work for free, and they can’t stay in business by taking on cases that have little or no chance of financial recovery.
Even within personal injury law, not every case qualifies for a contingency arrangement.
For instance:
Imagine you accept a high-paying job out of state as a drilling engineer. You hire someone outside a home improvement store to help you move. During the move, he accidentally drops your television, and it lands on your foot, causing a serious fracture that requires surgery and titanium screws. You spend three days in the hospital and are told you can’t perform strenuous activities for six months.
Because of the injury, you lose your new job opportunity, your moving deposits, and you’re left with $15,000 in medical bills. Understandably, you want justice—and you contact several personal injury law firms. To your frustration, every firm declines your case.
Why? Because there’s no financially viable defendant. The person who dropped the television isn’t insured, doesn’t own property, and likely doesn’t have assets to cover your losses. Even though your injury is real and your damages are significant, there’s no realistic path for an attorney to recover compensation.
That’s the key point: contingency fee attorneys accept cases where there’s both clear liability and a financially responsible party—such as an insured driver, employer, or business. Without those factors, no matter how serious your damages are, a contingency case simply isn’t feasible.
You get the point.
Why It's Important To Make Sure Lawyers Are Vetted?
The California State Bar investigates an average of 16,000 complaints of professional misconduct by attorneys each year.
At 1000Attorneys.com, we perform extensive due diligence to research and recommend the most qualified local attorney in your area who specializes in the specific area of law related to your case. Every attorney we refer is verified to be in good standing with the California State Bar and not under investigation for unethical or criminal conduct.
Our goal is to ensure you receive high-quality, trustworthy legal representation while holding California attorneys to the highest standards of professional integrity and accountability.
Where Can You Find a Lawyer Who Works on a Contingency Fee Basis?
If you’re looking for a California lawyer who works on a contingency basis, you can request a referral through our service 24 hours a day. Our network includes pre-screened attorneys who focus on representing clients who have suffered physical, financial, or workplace-related harm due to another party’s negligence or unlawful conduct.
When you work with one of our referred attorneys, all legal fees are tied directly to the outcome of your case. This ensures your lawyer has a direct incentive to pursue the maximum possible compensation and that your access to justice isn’t limited by your financial situation. Every attorney in our network is vetted for ethical standing, experience, and proven results in their area of practice.
You can begin by scheduling a free consultation with one of our verified California lawyers to review your situation and explore your legal options.
