Costs to File a Personal Injury Lawsuit in California
If you were injured in an accident, you might be wondering about filing a personal injury lawsuit against the at-fault party. However, you might be concerned whether you can afford to do so. Various fees and costs go into filing a personal injury lawsuit in California, so it’s important you understand them as you consider how you wish to move forward with your personal injury case.
Average Cost of a Personal Injury Lawsuit in California
You might want to know the average cost of filing a personal injury lawsuit in California to gauge the financial impact this might have on your life. However, every case is different, so there’s no average amount you can expect for your claim. The best way to learn the
Overview of Contingency Fees
One of the primary expenses you will be responsible for is attorney fees. Personal injury lawyers know that accident victims were not expecting to be injured and may not have the financial resources to pursue legal action. At the same time, they may be suffering from mounting medical bills, unexpected lost income, property damage repair costs, and other financial losses.
Personal injury attorneys typically address this issue by working on contingency. Rather than being paid on an hourly basis or a fixed amount, these attorneys receive their fee from the result of any settlement or verdict they recover. If the personal injury lawyer recovers money through a settlement or verdict, they receive a percentage of the financial recovery. If they are not successful, the client does not owe attorney fees.
Contingency fee arrangements are beneficial to personal injury victims for many reasons. A client can get legal services they need when they need them without having to worry about having to pay for them at that time.
Additionally, the personal injury lawyer’s interests are aligned with the client’s. The more the lawyer recovers, the more they stand to receive. Because personal injury attorneys risk not getting paid for their services, they are less likely to take on cases that are not likely to succeed.
Complex personal injury cases can require a lot of money to take to trial. Working on a contingency fee basis allows people to bring meritorious claims to trial to fight large insurance companies and defendants.
Contingency Fee Agreements
The amount of contingency fees must be explained in a written contingency fee arrangement, according to California law. Typical contingency fees in California are from 30% to 40% of the recovery, with an average contingency fee of 33% or one-third of the recovery. Under California law, there are no caps on contingency fees.
Under the contingency fee model, the exact percentage may be staggered. For example, contingency fees may be set at one-third if the case is resolved through a settlement or 40% if it involves litigation. It may be even higher than this if the case must be appealed.
The agreed-upon contingency fee must be included in the contingency fee agreement. This agreement must be in writing, and the lawyer must provide the client with a signed copy. These safeguards help prevent disputes about what the attorney and client agreed to.
California law also requires that the contingency fee agreement include the following information:
- A statement regarding how disbursements and costs will affect the contingency fee and the client’s recovery
- A statement as to how the client could be required to pay any compensation for related matters that arise out of the contingency fee agreement, if any, such as any amounts the attorney collects for the client
- A statement that the fee is not set by law (unless the claim is related to medical malpractice) and is negotiable
At Allen Law Firm, our attorneys work on a contingency basis. We can explain our attorney fee agreements and answer any questions you have when you retain our services.
Legal Costs
Another major expense related to personal injury cases is legal costs, which are separate and distinct from attorney fees. Personal injury cases can involve various legal costs, which may need to be paid upfront. Depending on the contingency fee agreement, the client may have to pay these costs upfront, or the lawyer may advance them and then receive reimbursement for them at the time of settlement.
One legal cost you may be responsible for paying is the filing fee. The current filing fee to file a civil lawsuit in California with damages exceeding $25,000 is $435. Other additional costs you may incur to litigate your personal injury case could include:
- Investigation costs
- Medical record fees
- Process server costs
- Court reporters’ fees for depositions
- Trial exhibit preparation
- Witness fees
- Subpoena costs
- Copying costs
- Postage
- Expert witness fees
These costs can be considerable, so it’s important that you understand how these costs will be handled. Your written contingent fee contract should explain how these fees are handled, whether you will be responsible for paying for them regardless of the outcome of your case, and how they impact the computation of the attorney’s fees. If your lawyer pays these upfront costs, they should keep track of them in a written record to show these deductions at the time of your settlement.
Medical Liens and Other Disbursements
Certain costs or expenses may also be deducted from your recovery. For example, many California personal injury cases may have medical or insurance liens against them.
Suppose you were in a car accident. You went to the emergency room, and your health insurance company paid $10,000 for your medical expenses. Your insurer may be entitled to reimbursement for these initial costs they recovered.
Here’s another example: you were hurt in a rear-end crash. You receive services from a chiropractor for your back injury. The doctor agrees to provide these services at no upfront cost, instead agreeing to place a medical lien on your recovery. When you receive your insurance settlement or trial award, the doctor is paid for the medical services they provide.
Your lawyer may be able to negotiate the costs of these medical liens and disbursements. They may charge for these additional services. Any such charge must be included in your written retainer agreement.
Can the Court Make the Other Party Pay My Attorneys’ Fees?
You may wonder if the other party should be responsible for paying your attorney fees. After all, you only had to hire a lawyer because someone else was negligent. Like most states, California follows the American Rule, which makes each side responsible for paying for their own attorneys’ fees whether they win or lose. Therefore, in most circumstances, you will be responsible for paying for your own legal fees from any award or settlement you receive.
However, California law does allow you to receive payment for certain legal costs if the court orders it.
Example of Legal Fees and Costs
It can be helpful to see a written example of how attorney fees and legal costs may be calculated. Suppose you were injured in a personal injury incident. You suffer $100,000 in damages. You sign a contingency fee agreement that states your lawyer will receive 33.33% of your award if the case is settled or 40% if it goes to court. The agreement states that any legal costs will be subtracted before the attorney fee is calculated.
Let’s say you settle your claim. You had legal costs of $1,000. Your attorney receives $32,996.70, which is one-third of $99,000. You receive the remaining $67,003.30.
Now, let’s say your case goes to trial. Now, you have legal costs of $5,000 and a medical lien of $5,000. Your attorney deducts these costs and disbursements from the $100,000 they recover. Your attorney receives 40% of the remaining $90,000, or $36,000. You receive the remaining $54,000.
How Are Attorney Fees Handled If I Switch Lawyers?
A final subject to understand is what might happen if you switched personal injury attorneys during the process. You have the right to be represented by the attorney of your choice. However, problems may arise during the case, leading to you dismissing your original lawyer and hiring a new one. For example, you might be unhappy with a former attorney because they did not return your calls or you disagree with their legal strategy in your case.
In these circumstances, your lawyers will need to split the attorney’s fees. Your original lawyer must be paid for the reasonable value of the legal services they rendered to you. A calculation of this amount may be included in your retainer agreement, or each attorney may provide a record of their work on your case to arrive at a reasonable value.
Contact an Experienced Lawyer to Learn More About the Costs of Filing a Personal Injury Lawsuit in California
Deciding to file a personal injury lawsuit is a difficult one. Personal injury lawyer fees can be confusing. An experienced personal injury attorney can discuss contingency fees, legal costs, and how our fee is computed during a free, no-obligation consultation. We believe that every accident victim is entitled to quality legal representation regardless of their current ability to pay. This is why we offer our legal services on a contingency fee basis. Contact the Allen Law Firm today for your free initial consultation.
