When Do You Pay a Los Angeles Injury Law Firm? A Clear Guide to Fees, Costs, and Timing

After an accident, one of the first practical questions is also one of the most stressful: When do you actually have to pay an injury attorney? In Los Angeles personal injury cases, the answer often depends on the fee structure, whether a lawsuit is filed, and how case costs (like medical records and expert opinions) are handled.

Below are the key decision factors that usually determine if, when, and how you pay.

• Contingency fee vs. hourly fee: Most injury cases are handled on contingency, meaning the attorney fee is tied to the outcome.
• Whether money is recovered: In many contingency arrangements, the attorney fee is paid from a settlement or judgment.
• Case costs and expenses: Filing fees, records, investigators, and experts may be advanced and later reimbursed.
• Pre-litigation vs. litigation: Fee percentages and costs can change if a lawsuit is filed.
• Medical liens and bills: Hospitals, health insurers, Medi-Cal, Medicare, and medical providers may be paid from the recovery.
• Insurance limits and fault disputes: These can affect whether a recovery is possible and how long it takes.
• Settlement structure: A lump-sum settlement vs. structured settlement affects disbursement timing.
• Who signs the fee agreement: Make sure you understand what you’re agreeing to before representation begins.

The short answer: most clients pay after the case resolves

In many Los Angeles personal injury matters, you do not pay an attorney upfront. Instead, the law firm’s fee is commonly paid at the end of the case, when a settlement check clears or a judgment is collected—assuming the representation is on a contingency-fee basis.

That said, “paying the firm” can mean more than one thing. There can be:

• Attorney’s fees (the legal fee for the lawyer’s work), and
• Case costs/expenses (out-of-pocket items to build and prove the claim).

Key definitions: fees, costs, liens, and disbursements

Attorney’s fees

This is what the firm charges for legal services. In many personal injury cases, it’s a percentage of the recovery under a contingency fee agreement. Other arrangements exist (hourly, flat fee), but they are less common for typical accident-injury claims.

Case costs (expenses)

These are the practical, third-party expenses involved in investigating, presenting, and pursuing the claim. Examples may include:

• Police report fees
• Medical record and billing retrieval fees
• Court filing fees and service of process
• Deposition transcripts
• Expert witness consultations (accident reconstruction, medical experts)
• Investigation expenses

Medical liens and reimbursement claims

A “lien” (or reimbursement right) is a claim against your settlement or judgment by an entity that paid for or provided treatment. Common examples include:

• Health insurance reimbursement/subrogation claims
• Medi-Cal recovery claims
• Medicare conditional payment reimbursement
• Medical provider liens (treatment on a lien basis)
• ER/hospital balances or unpaid medical bills

Disbursement

Disbursement is the final “settlement distribution” process—when the settlement check comes in, it is deposited, cleared, and then funds are paid out according to the settlement statement (fees, costs, liens, and your net recovery).

How paying an injury law firm usually works in Los Angeles

Many clients never write a personal check to the firm for the attorney’s fee. Instead, payment typically happens in this order:

1. You sign a fee agreement (often contingency) shortly after the free consultation.
2. The firm builds the claim—gathers records, communicates with insurers, documents injuries and damages.
3. A settlement is reached (or a lawsuit proceeds to judgment).
4. The settlement check is issued and deposited into a client trust account per legal/ethical requirements.
5. Liens and case costs are resolved, and a settlement statement is prepared.
6. Attorney’s fees and costs are paid from the settlement funds.
7. You receive the remainder (your net recovery), typically by check or other agreed method.

What changes the outcome: fee structure, costs policy, and case posture

1) Contingency fee (common in injury cases)

With a contingency fee, the attorney’s fee is generally contingent on obtaining a recovery. If the case results in a settlement or judgment that is collected, the fee is typically taken as a percentage from the proceeds.

Timing: Usually at the end, when the case resolves and funds are received.

2) Hourly fee (less common for most accident claims)

With hourly billing, you pay as time is worked—often via retainer + ongoing invoices. This may show up in certain matters adjacent to injury claims (for example, consultation-only work, or limited-scope services).

Timing: Ongoing during the case.

3) Hybrid arrangements

Some agreements mix contingency and hourly or include different fee terms depending on whether litigation is required. The details matter, and the written agreement controls.

4) Pre-litigation vs. litigation

Many claims resolve before a lawsuit is filed. If a lawsuit becomes necessary, additional costs and work can come into play: discovery, depositions, motions, court hearings, experts, and trial preparation. The fee agreement may address whether the contingency percentage changes once litigation starts.

Decision checklist: “When do I pay?” (and what should I confirm before signing)

If/Then: quick answers to common payment situations

• If your case is on contingency, then you typically pay the attorney fee only after a settlement/judgment is collected.
• If your agreement says the firm advances costs, then costs are usually reimbursed from the recovery at the end.
• If there is no recovery, then you may owe no attorney fee, but you must confirm in writing what happens with case costs.
• If a lawsuit is filed, then the process often takes longer and may involve higher costs than a pre-suit settlement.
• If you treated on a lien basis, then providers may be paid directly from the settlement before you receive your net proceeds.
• If Medicare/Medi-Cal/health insurance is involved, then reimbursement and compliance steps can affect timing and the final distribution.

What you can expect at the very beginning (before any money is recovered)

Most people contact an injury law firm shortly after a car accident, motorcycle crash, truck collision, pedestrian accident, slip and fall, or other injury event. Early on, “payment” typically looks like this:

• Signing the retainer/fee agreement: This is the big moment to understand the financial terms.
• No upfront attorney fee (common): Many firms do not require a retainer for standard injury claims.
• Authorization forms: So the firm can order medical records and bills, or speak to insurers.
• Claim setup: The attorney notifies the insurance company, identifies coverage, and advises you about communication with adjusters.

Insurance dynamics that affect when you get paid (and when the lawyer gets paid)

Even when fault seems clear, insurance claim handling can influence timing:

Adjusters often wait for “maximum medical improvement” or stable prognosis

Insurers commonly want a clear picture of your medical treatment and recovery outlook before evaluating pain and suffering, future care needs, or permanent impairment.

Recorded statements and early settlement pressure

Some insurers push quick settlements before the full scope of injuries is known. Settling too early can leave you with unpaid medical bills later. An attorney’s role often includes managing insurer communications and documenting damages.

Disputes over liability or comparative fault

California follows comparative fault, meaning responsibility can be allocated among parties. If the insurer argues you share fault (speeding, distraction, jaywalking, unsafe lane change), negotiations may take longer and affect the net recovery.

Policy limits and coverage issues

When the at-fault driver has low limits—or denies coverage—your attorney may explore additional sources like uninsured/underinsured motorist (UM/UIM) coverage, employer liability, or other potentially responsible parties. These issues can extend the timeline.

Costs vs. fees: what clients often misunderstand

Two separate questions tend to get blended together:

• Attorney’s fee: The legal fee, often a percentage, paid at the end from the recovery.
• Case costs: The expenses to move the case forward, sometimes advanced by the firm.

Important points to clarify before signing:

• Are costs advanced by the firm? Many firms advance costs to avoid burdening clients during recovery.
• Are costs reimbursed only if you win? Some agreements treat costs differently than fees—read carefully.
• How are costs itemized? You should expect a final settlement statement showing what was paid and why.

Example scenarios (hypothetical)

Hypothetical #1: Pre-suit car accident settlement

Scenario: You’re rear-ended in Los Angeles, go to urgent care and physical therapy, and miss work. Your attorney gathers your medical records, bills, and proof of lost wages, then negotiates with the at-fault driver’s insurance adjuster. A settlement is reached without filing a lawsuit.

When you pay: The attorney’s fee is typically paid after the insurer sends the settlement check, it clears, and the firm prepares a settlement statement. Case costs advanced by the firm (record fees, reports) are typically reimbursed from the same settlement. Any medical liens/balances are addressed before you receive the net amount.

Hypothetical #2: Slip-and-fall with disputed liability

Scenario: You slip in a grocery store. The store argues you “weren’t watching where you were going,” and its insurer disputes the condition existed long enough to fix. Your attorney hires an investigator, demands surveillance footage, and later files a lawsuit after negotiations stall.

When you pay: Under a contingency agreement, the attorney’s fee is still typically paid at the end—if money is recovered—but the case may take longer and costs (filing fees, depositions) may be higher. The settlement distribution may also take additional time if there are multiple lienholders.

What to bring up in your consultation: a practical script

If your main concern is “When do I pay?” these questions keep the conversation focused and clear:

• How does your contingency fee work in this type of case?
• Does the fee change if a lawsuit is filed or if the case goes to trial?
• Which costs do you advance, and how do you get reimbursed?
• If no money is recovered, do I owe any costs?
• How do you handle medical liens (treatment on lien, health insurance reimbursement, Medi-Cal/Medicare)?
• How long does settlement disbursement usually take after the case resolves?

How settlement money is typically distributed (why it can take time)

Once a case resolves, clients often expect immediate payment. In practice, several steps may be required:

• Release signing: You may need to sign a settlement release. If multiple parties are involved, there may be multiple releases.
• Check issuance and clearing: Insurers mail checks; checks must clear after deposit into an appropriate trust account.
• Lien payoff confirmation: The firm may request final lien amounts in writing and negotiate reductions where appropriate.
• Final settlement statement: You should receive an itemized breakdown showing gross settlement, attorney fee, costs, lien payments, and net to you.

Common mistakes that create unpleasant surprises

• Not reading the fee agreement: The timing and responsibility for costs should be spelled out.
• Assuming “no fee unless we win” means “no costs ever”: That phrase often refers to attorney fees, not necessarily expenses.
• Treating on a lien without a plan: Medical liens can consume a large portion of the settlement if not managed carefully.
• Posting about the accident: Social media posts can be used to dispute injury severity.
• Gaps in treatment: Insurers may argue you weren’t really injured or were injured elsewhere.
• Settling before understanding your medical picture: Once you sign a release, you generally can’t reopen the claim for newly discovered issues.

FAQ

Do I pay anything upfront to hire a Los Angeles personal injury lawyer?

Answer: Often, no. Many injury cases are handled on a contingency-fee basis, meaning the attorney fee is typically paid from the recovery at the end, but you should confirm the exact terms in the written agreement.

If we don’t win, do I owe the law firm money?

Answer: It depends on the fee agreement. Many contingency agreements provide no attorney fee if there is no recovery, but responsibility for case costs can differ, so it’s important to review the contract.

What’s the difference between “fees” and “costs” in an injury case?

Answer: Fees are what the lawyer charges for legal work, while costs are third-party expenses such as filing fees, medical record charges, and deposition transcripts. They are separate line items in most cases.

When do I get my settlement money after the case settles?

Answer: Usually after the release is signed, the settlement check is received and cleared, and liens/costs are addressed. Lien disputes or reimbursement claims (Medicare/Medi-Cal/health insurance) can extend the timeline.

Can my medical bills be paid out of my settlement?

Answer: Yes. Medical bills, provider liens, and insurance reimbursement claims are commonly paid from the settlement proceeds before you receive your net amount.

Does filing a lawsuit change when I pay?

Answer: The payment timing is still typically at the end in a contingency case, but litigation can increase costs and extend the timeline due to discovery, depositions, and court scheduling.

Will I see a breakdown of where the settlement money went?

Answer: You should. A settlement statement typically itemizes the gross settlement amount, attorney fees, case costs, lien payments, and the net amount to you.

Talk to a lawyer about fees before you sign anything

If you’re weighing your options after an accident in Los Angeles, a consultation can help you understand when you pay, how contingency fees and case costs generally work, what medical liens could mean for your net recovery, and what a realistic timeline may look like. For help, you can contact Jacob Emrani through CallJacob.com to discuss the details of your situation and the firm’s fee structure.

Disclaimer: This article provides general educational information for California personal injury matters and is not legal advice. Reading this content does not create an attorney-client relationship. Fee arrangements and responsibilities for costs can vary by case and must be confirmed in a signed written agreement.