In general, existing law requires attorneys to enter into written fee agreements with their clients. These agreements must specify, among other things, the fee to be paid to the attorney and the manner in which the fee will be determined. Attorney fees are billed to clients on either an hourly basis or a contingent fee basis. In contingent fee agreements, the attorney is paid a percentage of the settlement or judgment only if the case is won or settled in favor of the attorney s client. Generally, these hourly and contingent fees are negotiated between the client and the attorney.
Current law limits contingent fee rates in certain cases, such as medical malpractice cases.
Excessive Attorneys Fees Attorneys in California are regulated by the State Bar, which develops and enforces rules of professional conduct. The State Bar and the California Supreme Court have the power to discipline attorneys, including suspending an attorney from practice for a violation of the rules of professional conduct. One of these rules prohibits attorneys from collecting excessive fees, as defined in State Bar rules. Existing law allows courts to determine whether an attorney has filed a lawsuit or legal action that is frivolous. Frivolous actions are defined as either utterly without merit or filed solely to harass an opposing party.