Not all cases require you to pay legal fees upfront. Many lawyers are willing to take up cases based on contingency fees. This basically means that you won't be responsible for paying the lawyer unless they win your case. In general, most lawyers charge a contingency fee percentage between 33% and 40% of the total compensation awarded. This amount is normally far more than what the lawyer would have earned if they billed you by the hour. If you're interested in reducing the contingency fee percentage, you can opt for a blended contingency fee agreement, which is when you pay a portion of legal fees based on the hour and a portion through a contingency fee agreement. Here are 3 features to consider when negotiating the terms of the agreement.
Portion of Billable Hours to Be Paid in Full
In general, a blended contingency fee agreement will allow you to separate the billable hours based on percentage, so that you pay a certain amount of billable hours regardless of whether you win the case or not. Identifying which hours should be billed can be difficult. Some lawyers may charge you a percentage of the total hours spent on the case whereas others might bill you for the hours spent on certain tasks. This might include showing up in court or time spent with you in meetings.
Understanding which hours are going to be billed can make a difference to your case. For example, if a lawyer will bill you only for hours spent on certain tasks, you want to make sure that they don't spend a significant amount of time on those tasks. Take a look at the agreement to see whether there is a maximum amount of hours that the lawyer can bill you for.
Stepped Agreements Based on Hours Spent on Case
When paying the hourly rate, you're usually given a steep discount, especially if the lawyer ends up winning your case. Another factor to consider when agreeing to a blended contingency fee agreement is the amount of discount you are getting, along with whether you'll be charged a higher or lower premium depending on which stage the case is in. Some lawyers will give you great discounts at the later stages, as there is a higher likelihood that your case is going to settle in your favor. This means that the lawyer will end up getting their fair share through the contingency portion of the agreement.
You should definitely make sure that you are paying less and less for each hour as the case goes on. If not, make sure you negotiate these term with your lawyer.
Option to Opt Out and Opt In for Only Contingency Fees
No one knows just how much compensation you may be awarded. Although your lawyer might have a rough idea based on the average amount of compensation that has been awarded to similar cases, the circumstances of your case might result in entirely different outcomes. Take a look at whether your blended contingency fee agreement is set in stone.
In the event that you are awarded a lesser amount of compensation than expected, you might actually end up paying less if you were to opt out of a blended contingency fee agreement and opt in to one that is based entirely on contingency fees. Look at the contract to determine whether you can be given the option to pay whichever one is cheaper.
Conclusion
A blended contingency fee agreement can really help move your case along and can help you better control the amount of legal fees you end up paying. Talk to a lawyer at a firm like The Law Office of Israel S Hernandez, PLLC to determine whether this type of payment plan is feasible based on the circumstances of your case.
