Legal Question in Personal Injury in California

No. The 33% is his fee. "Costs" is money he spent on your behalf out of his pocket. Money that YOU would've had to spend, but that he loaned to you as an advance on your case. Most contracts allow these costs to be recovered separately from the fee. Usually, the fee is paid first, then the costs, then the medical bills, and whatever is left is yours.

Mr. Stone-Molloy correctly descibes how it is handled except in Southern California I am told that the percentage of the fee is calculated on the entire recovery but in Northern California it is on the recovery less the cost, so the fee is actually less. The typical result in the normal minor car accidnet case is that the xosts are paid, and the client, medical treater, and attoney each keep the reminin 1/3 of the net value.

Read your Retainer Agreement. Whatever you agreed to determines that. Attorney fees are generally deducted first from the gross, then costs are recovered from the client share. They are YOUR costs, not the attorney's. Plus, there is no rule or requirement that 33% be the fee. It can range [by agreement] up to 50% or more, and can be a 'stair-step' graduated fee structure that increases the closer the case gets to trial. If you have a legitimate dispute over fees, your local Bar Association has a fee dispute process you can invoke. But it is not for the purpose of you trying to re-negotiate your retainer agreement after the fact.

Ask the attorney to show you (with the client names blacked out) a disbursement memo from one of his or her cases. Some attorneys nickel and dime clients to death with excessive copying, postage, and other charges. Unless you want to pay 25 cents for every photocopy, nail down these costs up front. Everything is negotiable, and what you will pay is whatever you agreed to in the retainer agreement.

Costs are normally taken out of the recovery and then the percentages are split up. However, there are attorneys that still do the other way. 33% represents the attorney's fees, which is sometimes increased to 40% if the matter goes to trial. I recommend that you carefully read the retainer agreement for hire an attorney, or if your case, review it carefully before you agree to any settlement.

This response is for informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, a lawyer-client relationship, and readers should not act upon it without seeking professional counsel. For specific information or for a free initial consultation with an attorney, contact (855) THRU-LAW or visit www.ThruLaw.com.