how do the plaintiffs in a case split attorney fees?

[silverflash70]

I was part of a lawsuit- there were 15 plaintiffs at one time which reduced to 11-over the course of the case. One member of the plaintiff group has paid most of the attorney fees. The balance is becoming due now and that plaintiff is looking for payment. We won our case and in the judges order, it lists 15 people as plaintiffs in the versus section but only 11 in the actual paragraph that contains the order. These are referred to as "moving plaintiffs". I contend that I owe 1/11th of the TOTAL charges by our attorney since 11 people are specified and will benefit. Another member of the plaintiff group, had purchased property of other remaining plaintiffs (2 properties) in the group recently and he believes since he did that, I should pay 1/9th since there are only 9 people in the plaintiff group now, not 11 as indicated in the order- since he bought two other plaintiffs out. The order benefits the land/property.

one of the plaintiffs, mike, has paid all the fees to this point to the tune of $6500, but there is still $3500 left to pay. I signed no type of contract with the attorney.

My thought process is that i would pay the attorney, $10,000/11, which is $909.10. That way I am covered as far as being collected on by the attorney in case other plaintiffs choose not to pay anything. The other plaintiff is saying I should pay $1,111.11 ($10,000/9) as he bought two of the other moving plaintiffs out.

Is my thinking correct? Am i missing something?

thanks,

Pete.

 

[quincy]

I was part of a lawsuit- there were 15 plaintiffs at one time which reduced to 11-over the course of the case. One member of the plaintiff group has paid most of the attorney fees. The balance is becoming due now and that plaintiff is looking for payment. We won our case and in the judges order, it lists 15 people as plaintiffs in the versus section but only 11 in the actual paragraph that contains the order. These are referred to as "moving plaintiffs". I contend that I owe 1/11th of the TOTAL charges by our attorney since 11 people are specified and will benefit. Another member of the plaintiff group, had purchased property of other remaining plaintiffs (2 properties) in the group recently and he believes since he did that, I should pay 1/9th since there are only 9 people in the plaintiff group now, not 11 as indicated in the order- since he bought two other plaintiffs out. The order benefits the land/property.

one of the plaintiffs, mike, has paid all the fees to this point to the tune of $6500, but there is still $3500 left to pay. I signed no type of contract with the attorney.

My thought process is that i would pay the attorney, $10,000/11, which is $909.10. That way I am covered as far as being collected on by the attorney in case other plaintiffs choose not to pay anything. The other plaintiff is saying I should pay $1,111.11 ($10,000/9) as he bought two of the other moving plaintiffs out.

Is my thinking correct? Am i missing something?

thanks,

Pete.

What is the name of your state?

The division of fees should have been spelled out clearly in the attorney contract or in a written agreement between all plaintiffs.

 

[Zigner]

I believe that you are correct. Tell him that you'll pay 1/9 of the cost if you receive 1/9 of the award.
Alternatively, offer to meet in the middle and pay him roughly $100 to be done with it.

 

[silverflash70]

What is the name of your state?

The division of fees should have been spelled out clearly in the attorney contract or in a written agreement between all plaintiffs.

there is no contract that i signed or made aware of. State is North Carolina.

 

[quincy]

Thank you for providing your state name.

You said there were 15 plaintiffs originally. Even if some plaintiffs removed themselves from the legal action, that doesn’t (necessarily) relieve them of any early expenses incurred by the attorney at the start.

I suggest you request from the plaintiff who hired the attorney a copy of the attorney contract he signed and a copy of all invoices. Or do as you intended and see what happens.

 

[silverflash70]

Thank you for providing your state name.

You said there were 15 plaintiffs originally. Even if some plaintiffs removed themselves from the legal action, that doesn’t (necessarily) relieve them of any early expenses incurred by the attorney at the start.

I suggest you request from the plaintiff who hired the attorney a copy of the attorney contract he signed and a copy of all invoices. Or do as you intended and see what happens.

i do have a ledger of all the charges since the attorney took the case. I think i am best to just pay 1/9th. I just don't want the attorney chasing after me for payment if others don't pay him, after i pay him.

 

[quincy]

i do have a ledger of all the charges since the attorney took the case. I think i am best to just pay 1/9th. I just don't want the attorney chasing after me for payment if others don't pay him, after i pay him.

That’s certainly one way to deal with it - if it’s acceptable to the attorney - but I definitely would get a receipt from the attorney showing that you alone made that particular payment toward the balance due.

I still would ask for a copy of the attorney contract first, before paying anything. It is possible that there is a clause in it that makes each individual plaintiff responsible for the entire amount due.

 

[quincy]

North Carolina Rules of Professional Conduct, Rule 1.5 Fees:

https://www.ncbar.gov/for-lawyers/ethics/rules-of-professional-conduct/rule-15-fees/

 

[silverflash70]

That’s certainly one way to deal with it - if it’s acceptable to the attorney - but I definitely would get a receipt from the attorney showing that you alone made that particular payment toward the balance due.

I still would ask for a copy of the attorney contract first, before paying anything. It is possible that there is a clause in it that makes each individual plaintiff responsible for the entire amount due.

ok, thanks!

 

[quincy]

ok, thanks!

You’re welcome. And congratulations on winning the lawsuit.

 

[zddoodah]

I signed no type of contract with the attorney.

Did anyone else sign a contract with the attorney? If so, do you have access to the contract such that you could tell us what it says? Was there ANYTHING in writing outlining responsibility for payment of fees?

My thought process is that i would pay the attorney, $10,000/11, which is $909.10. That way I am covered as far as being collected on by the attorney in case other plaintiffs choose not to pay anything. The other plaintiff is saying I should pay $1,111.11 ($10,000/9) as he bought two of the other moving plaintiffs out.

I think the difference between $909.09 (not $909.10) and $1,111.11 is not really worth a lot of haggling over, but your argument is more logical.

Tell him that you'll pay 1/9 of the cost if you receive 1/9 of the award.

Absolutely. If one of the other plaintiffs bought out two of the other plaintiffs' shares, then he should receive 3/11ths of the recovery but should also pay 3/11ths of the fees. If he only wants to pay 1/9th of the fees, then he should only get 1/9th of the recovery (which I bet he wouldn't agree to since that's not likely what he bargained for when buying out the other two plaintiffs.

 

[quincy]

In North Carolina, under Rule 1.5 Fees, an issued Opinion says that, “In a new client-lawyer relationship, a written understanding as to fees and expenses should be promptly established,” this even though a written agreement with an attorney is not required (except with contingencies, which also must be signed by the client).

So I imagine there is a written agreement somewhere and there should be something in that agreement that details how the client is to pay the attorney.

It could be important to note that the attorney can sue to collect what he’s owed and he can turn over any unpaid debt to a debt collection agency.

 

[silverflash70]

i asked the plaintiff that has worked with the attorney/hired him, and there is no contract of any kind.

i am just thinking worst case- what if I pay my share, then everybody else doesn't pay, forcing the attorney to send to collections. Could I be on the hook for the remaining balance of the total $10,000? Seems unfair. Seems that the attorney would see that I paid my share, then sue the others who don't pay? That would be fair. I would think him going after me solely, even after i paid my share, would be unethical?

 

[quincy]

i asked the plaintiff that has worked with the attorney/hired him, and there is no contract of any kind.

i am just thinking worst case- what if I pay my share, then everybody else doesn't pay, forcing the attorney to send to collections. Could I be on the hook for the remaining balance of the total $10,000? Seems unfair. Seems that the attorney would see that I paid my share, then sue the others who don't pay? That would be fair. I would think him going after me solely, even after i paid my share, would be unethical?

The attorney potentially could sue you and any or all of the other plaintiffs in the case.

 

[zddoodah]

i am just thinking worst case- what if I pay my share, then everybody else doesn't pay, forcing the attorney to send to collections. Could I be on the hook for the remaining balance of the total $10,000? Seems unfair. Seems that the attorney would see that I paid my share, then sue the others who don't pay? That would be fair. I would think him going after me solely, even after i paid my share, would be unethical?

Based on the limited information we have, there's no way for anyone here to intelligently rule out any possibility.

What's the amount you expect to recover in this case (the total amount, not just your share)?