Should I be concerned about signing with a lawyer that would propose this type of an arrangement?
42% contingency fee -OR- attorney fee of $495/hr + costs and expenses.
2007-05-10 11:07:13 · 9 answers · asked by Girly 1 in Politics & Government ➔ Law & Ethics
There's a lot of issues in play here, and not enough information. A lawyer's fee can't be realistically assessed without knowing things like:
(a) The nature of your case. If you have a simple rear-ender car wreck, 42% is on the high side, but not unheard-of (average is 30-35%). A huge medical malpractice or pharmaceutical death case, on the other hand, can cost hundreds of thousands of dollars to litigate (out of the lawyer's pocket), with NO guarantee that he'll ever be repaid. You want him to take a high risk, he's going to expect a high reward.
(b) The complexity of your case. A shareholders' derivative action is going to cost more than the old rear-end example.
(c) The "value" of your case. If your likelihood of recovering a "donut" is high, the lawyer is going to want more money. Risk vs. reward again.
(d) The lawyer's reputation, skill, training and experience. The better the lawyer, the higher fee he can command.
(e) The "market" where you live. In Pine Bluff, Arkansas, $495 is a lot of money. In NYC ... wouldn't even raise an eyebrow. Partners at major law firms in "high" markets (like NYC for example) will routinely bill upwards of $500 an hour. A decent 850 sq. ft. apartment in NYC costs $4K a month, so what do you think a high-profile lawyer is going to charge?
That arrangement does seem a little ... excessive, but depending on the facts, it might not be *quite* as unreasonable as it sounds. The beauty of being the client is: everything is negotiable. You can always take your business elsewhere.
2007-05-10 12:02:46 · answer #1 · answered by Humberto 3 · 2⤊ 0⤋
These people are all wrong (except Dawn), which is a good example of why Yahoo Answers is not a very good place for legal questions. The answer to your question is maybe the second scenario, but probably neither. It does depend on what jurisdiction you're in, but most jurisdictions require the judge to award attorney's fees based on the reasonable value of the services provided, and the loser has to pay those fees. When your lawyer works on contingency, that complicates matters because the judge will typically not allow the full 1/3rd to be paid under the applicable standard. So, say for example you recover 30K, and the judge decides attorney's fees should be 5k. The loser then pays 35k. Your lawyer is entitled to 1/3 of the principal damages - 10k. He does not get a bigger percentage because attorney's fees are awarded. You then have to pay him the other 5k out of your damages, and you go home with 25k. Another example: Damages are 30k, judge decides attorney's fees should be 7k. Loser pays 37k, you give that 7k to the lawyer, and another 3k from your damages to make an even 10k, and you go home with 27k. If you are getting attorneys fees because of a fee-shifting provision in a contract, then your opponent just might have to pay the full contingency. That is a matter of contract interpretation for the fact-finder.
2016-05-20 00:09:17 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It looks like he is telling you that he really does not want to take the case.
A 42% contingency fee is abnormally high, unless, of course, the amount in controversy is really low in dollar value. $495 per hour plus costs and expenses seems rapacious.
Do some comparison shopping. I think you can get the work done for a lower price elsewhere.
2007-05-10 11:14:44 · answer #3 · answered by Mark 7 · 1⤊ 0⤋
You should shop around some more for someone who isn't going to bill you the "higher" of two amounts. There should be enough competition out there for you to find a lawyer who won't try to rake you over the coals.
2007-05-10 11:10:42 · answer #4 · answered by SodaLicious 5 · 2⤊ 0⤋
Thtat's a huge contingency fee - It depends on what you need the attorney for. Try to negotiate it down, it doesn't hurt to try.
2007-05-10 11:14:39 · answer #5 · answered by S17V 4 · 1⤊ 0⤋
Negotiate...work him down 35-36%. Never take the first offer. Take that contingency deal. Make the $ work against him instead of time working for him.
2007-05-10 11:14:11 · answer #6 · answered by Laughing Man Copycat 5 · 0⤊ 1⤋
Find another lawyer. The whichever is higher is a deal breaker.
2007-05-10 11:19:03 · answer #7 · answered by Richard F 7 · 1⤊ 0⤋
There are hundreds of thousands of lawyers in the US. You can call others.
2007-05-10 11:10:32 · answer #8 · answered by Anonymous · 2⤊ 0⤋
Find another atty
2007-05-10 11:17:27 · answer #9 · answered by bayareart1 6 · 1⤊ 0⤋