Before You Sign a Fee Agreement: What California Law Requires
California's rule for contingency fee contracts is found in section 6147 of the California Business and Professions Code. A contingency fee is a fee that depends on the outcome of the claim rather than on hours billed.
Section 6147(a) provides that an attorney who contracts to represent a client on a contingency fee basis "shall, at the time the contract is entered into, provide a duplicate copy of the contract, signed by both the attorney and the client, or the client's guardian or representative, to the plaintiff, or to the client's guardian or representative." The contract "shall be in writing." Section 6147(c) says the section does not apply to contingency fee contracts for the recovery of workers' compensation benefits.
When a contract falls short, section 6147(b) states the consequence: failure to comply with any provision "renders the agreement voidable at the option of the plaintiff, and the attorney shall thereupon be entitled to collect a reasonable fee."
Other fee contracts are covered by section 6148 of the California Business and Professions Code. It applies in any case not coming within section 6147 in which it is reasonably foreseeable that the total expense to a client, including attorney fees, will exceed $1,000. In those cases the contract must be in writing, and a signed duplicate copy goes to the client or to the client's guardian or representative. The written contract must state any basis of compensation, the general nature of the legal services, and the respective responsibilities of attorney and client. Under section 6148(c), failure to comply "renders the agreement voidable at the option of the client, and the attorney shall, upon the agreement being voided, be entitled to collect a reasonable fee."
Section 6148 does not reach every situation. Under section 6148(d), the writing requirement does not apply in four cases. The first, which may be the one most familiar to someone in the chaos after a fire, is "Services rendered in an emergency to avoid foreseeable prejudice to the rights or interests of the client or where a writing is otherwise impractical." The other three are a fee arrangement implied because the services are of the same general kind as services previously rendered to and paid for by the client, a client who knowingly states in writing, after full disclosure of the section, that a writing concerning fees is not required, and a client that is a corporation.
"Voidable" means the client or plaintiff may choose to undo the agreement. It does not mean the agreement is automatically void, and the statute still allows a reasonable fee. For someone affected by a fire, the practical point is that these rules give you a signed copy of the terms to keep, and some recourse if the contract does not meet them. More on how fees and costs work appears in the page on wildfire claim fees and costs.