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how are contingency fees handled when awarded attorney fees paid by opposing side?

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dunwoody_33

Junior Member
What is the name of your state? California

How it this handled:

Win a case
contingency agreement
60% to client
40% to attorney


100,000 compensatory
100,000 punitive
100,000 award for attorneys fees to be paid by defendent (opposing side)

300,000 total


But does attorney get all the 100,000 for attorney fees and then
40% of the other 200,000 (compensatory/punitive)

or does the attorney get 40% of the total of 300,000 compensatory+punitive+attorney fees

or does attorney get 40% of just the compensatory and punitive and the other 100,000 is given to the client to use to pay off the 40% of the 200,000 (compensatory+puntive) =80,000 but then what happens to the other 20,000? goes to client or attorney, or back to the defendent?

thanks
 


S

seniorjudge

Guest
The answer to your question (a good one, by the way) by your contingency fee contract.
 

dunwoody_33

Junior Member
vague language

contract states "40% of any recovery obtained"

asked the attorney and he said "he didnt know either", never had it come up before and hasnt done many contingency arrangements before.

I was concerned that in some cases i have read were the attorney fees we 400,000 but the award to claimant was only 50,000... and claimant went broke from having to report 450,000 in income and hit by alternative minimum tax. trying to avoid that unlikely but potentially hazardous situation.

Best way to resolve this? arbitration? or from the general language used in the contract "40% of any recovery obtained" can i assume that he collects 40% of what is awarded (total of compensatory + punitive + attorneys fees) and i get 60%?
 
S

seniorjudge

Guest
dunwoody_33 said:
asked the attorney and he said "he didnt know either", never had it come up before and hasnt done many contingency arrangements before.
I think y'all need to ask the state bar if they have a fee dispute resolution system and, if they do, use it.
 

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