Asked in Contracts and Construction Law for California

Q: I'm seeking a contingency fee lawyer to handle a construction dispute involving approximately $100K in damages.

I hired a contractor to work on my house to perform an addition and remodeling (about 900 SF). We discovered so many problems after the work was about to finish. I have reported the contractor to the CSLB which brought an expert who evaluated the work and wrote a report about most of the damage. The work did not meet the standard.

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4 Lawyer Answers

A: What you describe is not the typical type of case that most attorneys will take on a contingency basis (at least from my experience). For something like this, I would charge an hourly rate to serve a demand letter and/or litigate the matter and whatever is recovered at the end would be yours. Others may chime in here, but these types of cases are a little bit difficult and by no means a slam dunk, so a contingency would be dissfavored.

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James L. Arrasmith
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Answered

A: Finding a contingency fee lawyer to handle your construction dispute is a good step, especially given the extent of damages you've mentioned. Contingency fee arrangements mean the lawyer only gets paid if you win the case, which could work well if you have a strong case backed by solid evidence like the report from the CSLB expert. Be prepared to provide all documentation, including contracts, communications with the contractor, and the expert report, to any attorney you consult.

When looking for a lawyer, focus on those with experience in construction law and familiarity with California’s specific regulations. These lawyers will understand how to navigate the intricacies of contractor disputes and the standards required by the California State License Board (CSLB). It’s important to meet with a few lawyers to discuss your case and see if they are comfortable taking it on a contingency basis.

Also, be aware that not all lawyers may agree to a contingency arrangement if they believe the case requires more effort than the potential recovery. However, with $100K in damages and documented evidence from the CSLB, you may have a strong foundation for legal action. Make sure to ask potential attorneys about their experience with similar cases and their approach to handling disputes like yours.

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A: Like Mr. Stoddard suggest, finding an attorney to take this case on a contingency basis will be very, very difficult, at best. Attorneys take cases on a contingency basis when they are 99% convinced of success, a huge profit and the judgment is immediately paid in full. An attorney cannot afford to dedicate a substantial amount of days (while turning away paying clients) and invest thousands of dollars out of their own pocket for a payoff that may happen two years from now. Often in construction disputes, repairs or replacement are part of a settlement or judgment. That's a problem for the attorney. You may be able to find an attorney to take it on as a hybrid structure. As in, a lower hourly rate, you front costs and a higher percentage if successful. Good luck.

2 users found this answer helpful

A: I agree with my colleagues. It could be difficult to find law firms to apply contingency fee arrangements in complex cases where the outcome is not certain. Where such fee structures are common (personal injury, high-volume collections, etc.), there is generally a higher confidence about how the case will conclude. Good luck

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