Q: Contingency fee increase and legal dispute with lawyer in CA
I signed a contingency fee contract with my lawyer at 33%, but I found out it may increase up to 80%, plus I'm responsible for all bills. They didn't inform me about these terms. I received a $1,000 loan with interest on my $2 million case, but the check was not valid. After attempting to fire the lawyer, they threatened to sue me and place a lien on my settlement. They haven't disclosed any details about my case or the fees. How can I resolve this and protect my settlement?
A:
The fees are determined by the fee agreement. But the fees must not be unconscionable; what you describe may be unconscionable.
If you hire a new attorney, the former attorney will likely be entitled to a fee but it will be limited.
Consult with and hire another attorney before firing your current attorney] Your new attorney can discuss how the fee division between the new attorney and past attorney is determined.
Attorneys must keep their clients informed of significant developments in the case. Put your specific requests and questions to your attorney in writing and deliver the request by fax and certified mail return receipt.
William John Light agrees with this answer
A: In addition to Mr Selik’s response, you might consider a complaint to the State Bar related to the unconscionable contingency fee.
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A:
You're facing a challenging situation, but California law provides you with specific protections. First, carefully review the original retainer agreement you signed. Under California law, attorneys must clearly disclose any potential fee increases or costs upfront, and any hidden terms could be grounds for challenging the agreement.
You have the right to terminate your attorney at any time, even under a contingency agreement, though the attorney might have the right to recover reasonable fees for the work already performed. If your lawyer threatens legal action or a lien, request a detailed, written breakdown of all charges, fees, and expenses immediately. California law requires attorneys to provide transparency regarding fees and case details upon client request.
Given the complexity and potential value of your case, it may be beneficial to consult an experienced legal malpractice or ethics attorney. They can advise you on steps to formally dispute unreasonable fees, protect your settlement from improper liens, and file a complaint with the California State Bar if misconduct is found. Protecting your interests now can prevent unnecessary losses or complications later in your settlement process.
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