California — Contingency Fee Rules

Contingency Fee Regulations

California does not impose a general statutory cap on contingency fees in personal injury cases. The fee percentage is a matter of private agreement between attorney and client, subject to the overriding requirement of California Rule of Professional Conduct 1.5 that fees must be "not unconscionable."

The most significant fee regulation applies to medical malpractice cases under the Medical Injury Compensation Reform Act (MICRA), originally enacted in 1975 and amended by AB 35 in 2022. MICRA imposes a sliding scale on attorney fees (B&P Code § 6146): 40% of the first $50,000 recovered, 33⅓% of the next $50,000, 25% of the next $500,000, and 15% of any amount exceeding $600,000. The 2022 amendments are gradually increasing the non-economic damages cap from $250,000 to $750,000 (non-death cases) and $500,000 to $1,000,000 (wrongful death) by 2033.

All contingency fee agreements must be in writing under Business and Professions Code § 6147, stating: the contingency fee rate, how disbursements and costs will be deducted, and the client's right to terminate the agreement. Failure to comply renders the agreement voidable at the client's option.

Statute of Limitations

California-Specific Considerations

Pure comparative fault: California follows a pure comparative negligence standard (Li v. Yellow Cab Co., 1975). Your recovery is reduced by your percentage of fault, but you can recover even if you are 99% at fault.

No caps on non-economic damages in personal injury cases outside the medical malpractice context. Unlike many states, California does not impose a general tort reform cap on pain and suffering awards.

Proposition 213: Uninsured drivers and those convicted of DUI cannot recover non-economic damages (pain and suffering) even if the other driver was at fault (Civil Code § 3333.4).