Mixed and hybrid contingency agreements
These have two parts:
§ Flat fee part
§ Contingency fee percentage part
Instead of charging the traditional 33.3% of successfully recovered amounts, we charge a flat fee, and from the recovery we take a much lower fee percentage base of 18.3%.
We then charge escalating percentages based on known possible outcomes, such as punitive damages or an appeal.
What the flat fee is calculated as depends on the particulars of your matter, and how much work we forecast will be necessary. We begin by creating a project template with discrete and measurable milestones, and do rough calculations based on our experience. Clients remain responsible for expenses such as filing fees, photocopies, and expert witnesses.
Our experience tells us that it takes a little more time and energy to negotiate the scope of such agreements, but those negotiations build trust and understanding that ultimately benefits both client and attorney.
Basically it works like this…..
The idea is for every dollar you spend up front, you will save yourself five dollars on the ultimate cost if we must proceed all the way to judgment. Think about it like that. Not every case is well suited, but we will help you run the numbers and find out.
One reason is it changes the risk allocation. Clients who believe in their own case (and have the money to pay for the services in advance) can materially lower their final legal bill this way. From our perspective, it helps us a lot when the client must make an “ante” bet.
Got questions? Have a case you may think fits?