What must be stated in a California contingency fee agreement regarding the fee structure?

In California, a contingency fee agreement must clearly specify that the fee structure is negotiable. This requirement is rooted in the need for transparency between the attorney and the client, ensuring clients are fully aware that they have the right to discuss and potentially negotiate the terms of the fee arrangement. This aspect is essential for protecting clients’ interests, as it underscores that they are not bound to accept fees without the opportunity to negotiate.

The other options suggest a rigidity or an informal approach that does not align with California law. For example, stating that the fee is set and non-negotiable would undermine a client’s ability to seek fair compensation and could discourage prospective clients from engaging with legal representation. Likewise, indicating that fees are predetermined by the court overlooks the discretionary nature of fees in contingency arrangements, which are typically established based on the agreement between the attorney and the client, rather than imposed externally. Lastly, labeling the fee agreement as a verbal commitment fails to meet the requirement that such agreements be in writing, as California mandates written contingency fee agreements to ensure clarity and formality in the representation relationship.