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• W3174339600 abstract "A lawyer’s fee for representing a client may be characterized as “contingent” if the lawyer’s compensation depends in whole or part on the successful outcome of the matter. Courts and proponents describe contingent fees as the “key to the courthouse door” because they enable poor plaintiffs to pursue litigation they could not afford to maintain if their lawyers charged them by the hour. Contingent fee agreements also benefit plaintiffs who would never be categorized as poor but who would nonetheless strain to afford significant legal fees absent a settlement or judgment out of which the fees might be paid. For that matter, clients who can afford to pay lawyers by the hour benefit from contingent fees because they shift much of the risk of loss to the lawyer and allow the client to allocate the money it would otherwise spend on legal fees to other needs. Contingent fees have historically been predominant in plaintiffs’ personal injury and employment litigation. And, again historically, lawyers charging contingent fees have typically practiced solo or in small firms. Neither the traditional view of the types of litigation for which lawyers charge contingent fees nor the types of lawyers or law firms charging them, however, is reliably accurate today. Today, contingent fees are commonplace in intellectual property and commercial litigation, with law firms of all sizes utilizing them. There are at least two reasons that contingent fees have spread beyond their historical realm to practice areas such as intellectual property and commercial litigation, and are now frequently charged by law firms that have traditionally eschewed them. First, organizational clients are increasingly seeking lawyers who will represent them on a contingent fee basis. These clients believe that a contingent fee aligns the lawyer’s interests with their own. Linking the lawyer’s compensation to a successful outcome in the matter supposedly encourages the lawyer to be more creative, efficient, and result-oriented than she might be otherwise. By insisting on a contingent fee, the client also avoids the potentially significant expense of paying hourly fees during the life of the case, as well as the budgeting challenges attributable to the uncertainty of litigation. Second, large law firms are increasingly receptive to contingent fee engagements because some cases are potentially much more lucrative on a contingent fee basis than they would be if the firm billed on an hourly basis. As established, popular, or increasingly widespread as they are, contingent fees raise numerous professional responsibility issues. As more clients seek contingent fee representations and as more lawyers agree to work on contingency, a growing number of lawyers who are unfamiliar with those issues, or who lack experience navigating them, will have to develop related knowledge and expertise to practice responsibly. This need is amplified by the fact that contingent fee agreements are subject to judicial oversight. This article aims to provide lawyers with broad knowledge of the professional responsibility issues lurking in contingent fee representations. In doing so, it addresses both recurring and emerging issues, and explains the nuances of key issues in a fashion that will additionally assist courts that are tasked with evaluating and approving contingent fees." @default.
• W3174339600 created "2021-07-05" @default.
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• W3174339600 date "2018-08-27" @default.
• W3174339600 modified "2023-09-23" @default.
• W3174339600 title "Turns of the Contingent Fee Key to the Courthouse Door" @default.
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