In many areas of law, legal representation is a luxury product. But in the world of personal injury and employment law, the economics work differently. The system is designed so that your bank account balance does not determine your ability to seek justice.
The short answer for most clients contacting Banderas Law is simple: It costs you $0 out of pocket to hire us. You pay nothing upfront, and we only get paid if we win your case.
However, understanding exactly how legal fees work, where your money goes, and what creates the final number on a settlement sheet is necessary for making an informed decision. When you understand the financial mechanics of a law firm, you can see why hiring counsel is an investment in your recovery, not an expense that drains it.
If you have been injured or treated unlawfully at work in Ontario, California, or the surrounding areas, do not let financial worry keep you from protecting your rights. Call Banderas Law today. We will walk you through the numbers clearly at no cost.
Key Takeaways for Lawyer Costs
- Most personal injury and employment lawyers work on a contingency fee basis. This means you pay no upfront fees, and the lawyer only gets paid if they win your case.
- Attorney fees are different from case costs. Fees are the percentage the lawyer earns, while costs are expenses like filing fees and expert witnesses that are reimbursed from the settlement.
- The lawyer's percentage is not the only factor to consider. A more experienced firm with a higher fee may secure a much larger settlement, resulting in more money for you in the end.
The Three Ways Lawyers Get Paid
The legal industry typically operates on three specific billing models. Each serves a different purpose and shifts the financial risk in different ways.
1. Hourly Rates: The Meter Model
This is the model most people are afraid of. In corporate defense, family law (divorce), and criminal defense, lawyers trade their time for your money. You pay a retainer (essentially a deposit), and the lawyer deducts from that pile of money for every email, phone call, court appearance, and document drafted.
Rates in California may vary wildly. A junior associate might bill at $250 an hour, while a senior partner in a high-rise Los Angeles firm could command upwards of $1,000 an hour.
The risk here falls entirely on you. If the case takes two years and you lose, you have still paid for every hour the lawyer worked. The lawyer gets paid regardless of the outcome.
2. Flat Fees: The Product Model
For predictable, transactional work, lawyers charge a single flat price. This is common for things that have a defined beginning and end with few surprises.
- Bankruptcy filings: A set fee to process the Chapter 7 or 13 paperwork.
- Estate planning: A fixed price for a trust and will package.
- Traffic tickets: A flat rate to appear in court on your behalf.
This model provides certainty. You know exactly what the cost is before you start. However, this model rarely applies to lawsuits involving accidents or employment disputes because nobody knows how long the fight will last or how hard the other side will resist.
3. Contingency Fees: The Results Model
This is how Banderas Law operates. In personal injury and many employment cases, the lawyer takes a percentage of the final settlement or verdict. If there is no recovery, there is no attorney fee.
This model exists to solve a specific economic problem: access to justice. Most people who get hit by a truck or fired illegally do not have $10,000 sitting in a savings account to pay a retainer. If lawyers only worked by the hour, insurance companies and large corporations would win every single time simply because they can outspend the victim.
Contingency fees level the playing field. They allow a regular person in Ontario or Riverside to hire a high-powered legal team to fight a billion-dollar insurance carrier.
Deep Dive: How Contingency Fees Work
Since this is the model that applies to most of our clients, we should break down the specifics. When you sign a retainer agreement with a contingency firm, you agree that a portion of the money recovered belongs to the firm as compensation for their work and risk.
What is the Standard Percentage?
The industry standard for contingency fees typically fluctuates based on how far the case proceeds.
- Pre-Litigation (~33.3%): If your lawyer negotiates a settlement with the insurance adjuster before filing a formal lawsuit, the typical fee is usually around one-third of the gross recovery.
- Litigation (~40%): If the insurance company refuses to make a fair offer and your lawyer must file a lawsuit, conduct discovery, and prepare for trial, the fee usually increases to somewhere around ~40%. This reflects the massive increase in work and hours required to litigate a case in the Superior Court system.
California law requires transparency here. Under Business and Professions Code 6147, your contract must state the contingency rate and clarify that these rates are not set by law but are negotiable between the attorney and client.
That said, most reputable firms hold to these standard rates because they reflect a calculated balance of risk. Remember, the firm is working for free for months or even years. If the case falls apart, the firm loses all that time and money.
Alignment of Interests
The beauty of the contingency model is that it forces your lawyer to have skin in the game. In an hourly model, a lawyer might be tempted to drag a case out to bill more hours. In a contingency model, the lawyer wants to get you the highest possible amount as efficiently as possible.
If you get $10,000, the lawyer gets a small fee. If you get $1,000,000, the lawyer gets a substantial fee. Your goals are perfectly aligned. We are motivated to find every policy limit, every avenue of coverage, and every piece of evidence that increases the value of your claim.
The Hidden Component: Costs vs. Fees
This is the area where clients are most commonly confused. There is a difference between attorney fees (payment for the lawyer's time and expertise) and costs (expenses incurred to move the case forward).
Even in a contingency arrangement, the costs of the lawsuit must be paid. Typically, a firm like Banderas Law will advance these costs for you. We pay the bills as they come in so you don't have to. These expenses are then reimbursed from the settlement at the end of the case.
Common case costs include:
Filing Fees and Court Costs
Just to start a lawsuit in San Bernardino or Riverside Superior Court requires a filing fee, typically ranging from $435 to $450 depending on the jurisdiction and difficulty. Throughout the case, there are fees for motions, jury deposits, and administrative processing. The government charges for access to the courtroom, and these fees add up.
Deposition Costs
When we question the at-fault driver or a witness under oath, we must hire a court reporter to create a transcript. A single deposition could cost $500 to $1,500 depending on how long it lasts and the length of the transcript. In a difficult case with many witnesses, this may be a significant expense.
Medical Records and Police Reports
Hospitals and police departments do not send records for free. They charge administrative fees per page. Retrieving a full medical history to prove your injuries commonly costs hundreds of dollars.
Expert Witnesses
This is usually the largest expense in a serious injury case. To prove your case to a jury, we typically cannot rely on your word alone. We need science.
- Accident Reconstructionists: Engineers who calculate speed, force, and impact angles to prove the other driver was at fault.
- Medical Experts: Surgeons or specialists who write reports explaining why your injury is permanent and will require future care.
- Vocational Experts: Professionals who calculate how much income you will lose over your lifetime because you can no longer do your specific job.
These experts charge high hourly rates for their time. However, when needed, their testimony is typically the lever that forces an insurance company to pay a seven-figure settlement instead of a five-figure one.
Why Cheap Could Cost You Millions
In the age of internet marketing, you may see discount lawyers advertising lower percentage fees. They might offer to take a case for 25% or even less. While this sounds appealing on the surface, you must ask yourself: Why are they discounting their service?
In law, as in everything else, you get what you pay for. A firm that cuts its fees usually relies on volume. They need to settle hundreds of cases quickly to keep the lights on. They may not have the resources to hire that $5,000 accident reconstruction expert or the patience to fight for two years to get the maximum policy limit.
Consider the math:
- Scenario A (Discount Lawyer): Settles quickly for $20,000 because they didn't want to file a lawsuit. Fee at 25% is $5,000. You net $15,000 (minus costs).
- Scenario B (Full Service Lawyer): Hires experts, files suit, and pushes the insurance company to the brink. Settles for $100,000. Fee at 40% is $40,000. You net $60,000 (minus costs).
In this example, the so-called expensive lawyer put an extra $45,000 in your pocket. The percentage matters less than the final result. At Banderas Law, we focus on maximizing the gross recovery so that your net portion is as high as possible.
The Cost of Going It Alone
The most expensive choice you might make is to hire no lawyer at all. Insurance adjusters are trained negotiators. Their entire business model relies on paying you less than you deserve.
They know that without a lawyer, you likely do not know the value of your general damages (pain and suffering). They know you do not know the statute of limitations. They know you probably won't file a lawsuit if they deny your claim.
Statistics consistently show that claimants represented by counsel recover significantly more money than those who represent themselves, even after the attorney's fees are deducted. The savings of not hiring a lawyer usually vanishes the moment you accept a lowball offer that barely covers your ambulance ride.
FAQ: Common Financial Questions
Do I have to pay taxes on my settlement?
In most cases, no. According to the IRS, compensation for physical injuries or physical sickness is not taxable income. The money is intended to make you whole, not to act as profit. However, exceptions exist for punitive damages or interest accumulated on a judgment. We can advise you on when to speak with a tax professional.
What if I want to switch lawyers? Will I be double-billed?
You have the right to fire your lawyer at any time. If you switch to Banderas Law, you generally do not pay two full fees. The first lawyer will likely place a lien on the file for the reasonable value of the work they did, which is paid out of the single fee at the end. We resolve these fee disputes with prior counsel so you don't have to worry about them.
Is the initial consultation really free?
Yes. If you call Banderas Law for a personal injury or employment matter, the consultation is 100% free. We review the facts, tell you if you have a valid claim, and explain your options. If we decide not to take the case, or if you decide not to hire us, you owe us nothing.
Who pays the costs if we lose?
This depends on the specific language in your retainer agreement. In many contingency arrangements, the firm absorbs the loss of the advanced costs if there is no recovery. This creates a risk-free environment for the client. We will review our specific policy with you before you sign anything so there are no surprises.
Invest in Your Recovery
When you look at the cost of hiring a lawyer, shift your perspective. You are not buying a service; you are investing in a result. You are hiring a professional to handle the fight so you can focus on healing.
At Banderas Law, we understand that after an accident or a wrongful termination, money is tight. You are stressed; the last thing you need is another bill. That is why our structure is built to protect you. We use our resources to build your case, and we only succeed when you succeed.
Do not let the insurance company win by default because you were worried about fees. Call Banderas Law today. We will sit down with you, look at your case, and explain exactly how the numbers work. Let us help you secure the compensation required to put your life back together.