California Is Its Own Exception on Attorney Fee Caps

Most capped states use one flat percentage for every personal injury case. California does something genuinely different: no cap almost everywhere, a real sliding scale in one specific place.

California: no cap, except in medical malpractice

For an ordinary personal injury case, California imposes no statutory cap on the contingency fee percentage at all — the rate is set entirely by private agreement. The one real exception is medical malpractice, where Business and Professions Code § 6146 sets an actual statutory ceiling.

How California's cap differs from a flat-rate state

Michigan, by contrast, applies a single 33.33% cap across every personal injury case, regardless of type. California's approach is narrower in scope but more structured within that scope: a 25% cap if the medical malpractice case settles before a complaint or arbitration demand is filed, rising to 33% afterward, with room for a court-approved higher fee if the case goes to trial. It's a genuinely different model — not broader, but more precisely targeted.

This cap changed recently, and significantly

Before January 1, 2023, California's medical malpractice fee cap followed a flat declining scale: 40% of the first $50,000, 33% of the next $50,000, 25% of the next $500,000, and 15% of anything beyond $600,000. AB 35 replaced that structure entirely with the current stage-based system — a genuinely significant restructuring, not just a number adjustment.

A reasonableness standard still matters, even without a hard cap

Outside medical malpractice, the absence of a statutory ceiling doesn't mean any fee is automatically acceptable — attorney conduct rules still require a reasonable fee. Inside medical malpractice, the 25%/33% figures set the ceiling, not a mandatory rate; attorney and client remain free to agree to something lower.

California's fee cap — frequently asked questions

Does California cap attorney fees in personal injury cases generally?

No, only in medical malpractice. An ordinary car accident, slip and fall, or other injury case has no statutory fee cap in California.

How is California's fee cap different from Michigan's flat-rate cap?

Michigan applies a single 33.33% cap across all personal injury cases. California applies no cap at all outside medical malpractice, but a stage-based sliding scale (25% to 33%, higher with court approval) specifically within it.

Did California's fee cap change recently?

Yes. AB 35, effective January 1, 2023, restructured the prior flat sliding scale (40% of the first $50,000, declining from there) into the current stage-based system tied to whether a complaint or arbitration demand has been filed.

Is a statutory fee cap the norm or the exception nationally?

The exception. Most states leave the contingency fee percentage to private agreement between attorney and client, subject only to a general reasonableness standard — California does this too, except in medical malpractice.

Does California's fee cap mean any percentage up to the limit is automatically allowed?

In medical malpractice, the 25%/33% figures are the statutory ceiling, not a floor — an attorney and client can agree to a lower rate. Outside medical malpractice, the fee must still be reasonable even without a hard statutory cap.

This page provides general guidance only and is not legal advice. Figures are based on Business and Professions Code § 6146, verified per our methodology. Confirm how these rules apply to a specific claim with a licensed California attorney before acting.