Contingency Fee vs. Hourly Fee: How California Legal Fees Work

The fee structure follows the type of case more than the firm. Injury and lemon law work is normally contingency; ongoing advisory work is normally hourly.

Contingency fee vs. Hourly fee: side by side

Comparison of Contingency fee and Hourly fee
FactorContingency feeHourly fee
When you payOut of a recovery, at the end.As the work is performed, usually monthly.
If the case does not recoverNo attorney fee is owed. Cost responsibility depends on the agreement.Time already billed is still owed.
RetainerTypically none.An advance deposit is common.
Case costsOften advanced by the firm and reimbursed from the recovery.Usually billed to the client as incurred.
Written agreementRequired in writing (Bus. & Prof. Code § 6147).Required in writing above the statutory threshold (§ 6148).
Typical useInjury, wrongful death, lemon law, many employment claims.Business disputes, defense work, ongoing counseling.

Contingency fee usually fits when

  • You cannot fund litigation out of pocket
  • The claim seeks money damages from an insurer or manufacturer
  • You want the firm to carry the financial risk of the case

Hourly fee usually fits when

  • You need advice, drafting, or defense rather than a damages recovery
  • The matter has no monetary recovery to share
  • You want to control scope and stop work at any point

Common questions

Are contingency percentages fixed by law in California?

Not for most cases. The percentage is negotiated and must appear in a written agreement. Medical malpractice is the exception, where Business and Professions Code section 6146 sets limits.

What is the difference between fees and costs?

Fees pay for the attorney’s work. Costs are case expenses such as filing fees, records, depositions, and experts. Your agreement states who advances costs and how they are repaid.

Can a case be handled on a hybrid arrangement?

Yes. Reduced hourly rates paired with a smaller contingency are used in some matters. Any hybrid arrangement must still be written out clearly.

Not sure which applies to you?

Brandon Aminpour offers a free case evaluation. There is no obligation and no fee to talk.

Call (323) 879-9777

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This page is general information about California law, not legal advice, and reading it does not create an attorney-client relationship. Blackrock Law Group is licensed in California. Prior results do not guarantee a similar outcome.

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