I have question on contract with attorney

[nyord]

We had to hire an attorney for a personal injury and he took the case on a contingency fee. Today we received his contract to sign; among other things we agree to pay $20.00/month to cover postage, filing, etc. Then it goes on to read:"It is also expressly understood and agreed that in the event of no recovery, then client will owe no attorney's fees to Attorneys. PROVIDED HOWEVER, that client is responsible for and agrees to indemnify Attorneys for any and all costs incurred in furtherance of his or her cause. The costs which client is responsible for shall include but not be limited to: filing fees, deposition expenses, witness fees, expert witness charges, the cost of exhibits and medical reports, and any costs awarded to the adverse party by the Court, which may include the other party's Attorney's Fees." So it's basically all this we'll be paying $20.00/month to, right? When you read all that, $20.00/month doesn't sound like much...

Then it reads:"It is further agreed that the client may discharge the Attorneys at any time, provided that if Attorneys will be entitled to a reasonable hourly fee plus a portion of the ultimate settelment to compensate Attorneys for taking this case on a contingency. This amount may be determined on the basis of the highest settlement offer made at the point the Attorneys are discharged. If either party at any time terminates this contingent agreement, the client hereby agrees to pay, upon the conclusion of the case either by settlement or collected Judgment, a sum equal to the quantum meruit value fo the law firm's legal services".

What does that mean in plain English? (or Danish if anyone knows that better!)

I trust the attorney, but when you get to the point where you have to hire an attorney, you are out there where you don't know who to trust anymore!!

Thanks in advance for any help.

 

[I AM ALWAYS LIABLE]

We had to hire an attorney for a personal injury and he took the case on a contingency fee. Today we received his contract to sign; among other things we agree to pay $20.00/month to cover postage, filing, etc. Then it goes on to read:"It is also expressly understood and agreed that in the event of no recovery, then client will owe no attorney's fees to Attorneys. PROVIDED HOWEVER, that client is responsible for and agrees to indemnify Attorneys for any and all costs incurred in furtherance of his or her cause. The costs which client is responsible for shall include but not be limited to: filing fees, deposition expenses, witness fees, expert witness charges, the cost of exhibits and medical reports, and any costs awarded to the adverse party by the Court, which may include the other party's Attorney's Fees." So it's basically all this we'll be paying $20.00/month to, right? When you read all that, $20.00/month doesn't sound like much...

Then it reads:"It is further agreed that the client may discharge the Attorneys at any time, provided that if Attorneys will be entitled to a reasonable hourly fee plus a portion of the ultimate settelment to compensate Attorneys for taking this case on a contingency. This amount may be determined on the basis of the highest settlement offer made at the point the Attorneys are discharged. If either party at any time terminates this contingent agreement, the client hereby agrees to pay, upon the conclusion of the case either by settlement or collected Judgment, a sum equal to the quantum meruit value fo the law firm's legal services".

What does that mean in plain English? (or Danish if anyone knows that better!)

I trust the attorney, but when you get to the point where you have to hire an attorney, you are out there where you don't know who to trust anymore!!

Thanks in advance for any help.

My response:

These are costs, not fees. These costs are monies that YOU would certainly spend if you were running your case on your own. This is not the attorney's case, it is yours. Therefore, the attorney doesn't want to, nor is he compelled to, finance your cases' progress. He's willing to take a chance on not getting any "fees", but he's entitled to the reasonable costs that he expends to prosecute your case / claim.

Now, as to the fees, if your case concludes in your favor, then your attorney is entitled to his "fees" as per the contract - - usually, but not always, 33 1/3 percent if your case settles prior to arbitration, and goes up to 40% if your case settles after arbitration or goes to judgment.

Further, if for some reason, let's say, 4 months down the road, you decide to change attorneys, your current attorney is entitled to his "quantum meruit" (reasonable hourly) fees for all of his work up to the date you may fire him, from any settlement or judgment you eventually may receive. Again, if you don't win, you won't be paying him except for costs. But, if you do win, he and your new attorney would then split the attorney fees in an agreement between themselves. Your net settlement or judgment would not be affected by such agreement between the two attorneys.

It appears that the agreement your are being asked to sign is standard, and fair.

IAAL

 

[nyord]

Thank you! Just what I wanted to hear! (The personal injury can be read under Accidents and it was thanks to you guys we went and talked to an attorney.)

Yes, the contract does say "attorneys shall be compensated as follows:
1. Prior to filing suit or commencement or arbitration, bla, bla. 33 1/3%

2. After commencement of suit by filing a Complaint or after commencing Arbitration proceedings, bla., bla. 33 1/3%

3. After completion of trial and commencement of appeal, bla., bla. 33 1/3%"

So I guess he's nice and not raising it to 40% in case of trial, or can he change his mind down the road?

 

[I AM ALWAYS LIABLE]

Thank you! Just what I wanted to hear! (The personal injury can be read under Accidents and it was thanks to you guys we went and talked to an attorney.)

Yes, the contract does say "attorneys shall be compensated as follows:
1. Prior to filing suit or commencement or arbitration, bla, bla. 33 1/3%

2. After commencement of suit by filing a Complaint or after commencing Arbitration proceedings, bla., bla. 33 1/3%

3. After completion of trial and commencement of appeal, bla., bla. 33 1/3%"

So I guess he's nice and not raising it to 40% in case of trial, or can he change his mind down the road?

My response:

As long as the fees are in writing, then no, he can't "change his mind down the road". It's a contract.

Yes, it appears he's doing you a service (Mitzva) by only charging you 33 1/3% no matter what point your case is at, rather than escalating the fee like I do if my client's case goes to trial.

So, it's a good thing you hired him, and not me.

IAAL

[Edited by I AM ALWAYS LIABLE on 01-12-2001 at 12:11 PM]