Can Lawyers Take Percentage From Net Settlement?
20.May, 2010
Since Lawyers are just Legal Representatives of their respective clients how can they legally take their percentage from the net of a settlement since their clients cannot and the clients must take their percentage after medical liens and lawyer expenses? Hence Lawyers are able to make 30% off their own expenses which they deduct out of the settlement money yet already have made 30% on that money.
The net proceeds are AFTER all the expenses. You seem to be referring to the GROSS amount.
A contingency agreement always is based on the gross amount of the settlement. If the court awards $100,000 and the contingency agreement is for 30%, the lawyer takes $30,000. Any other costs are irrelevant.
You could of course agree to settle for some portion of the net amount, but that must be agreed beforehand. It makes no difference, the lawyer is basing his agreement on what he sees as the outcome of the case. If the net amount of the above example was projected to be say $50,000 after medical costs, the lawyer (still seeking his $30,000) would be a fool to agree to take the case for less than 60%
People seem to fail to understand that, in a contingency case, the lawyer gets NOTHING is he loses, despite devoting hours and dollars to the case. If you agree to pay him X%, he gets x%, that’s what was agreed.
20.May, 2010 um 11:03 am
They certainly can if it’s agreed upon prior to taking the case.
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20.May, 2010 um 11:20 am
Because the agreement made with the lawyer is 30% of the GROSS not the NET.
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20.May, 2010 um 11:43 am
Because they have a CONTRACT that says they can.
If you don’t like it, then don’t sign the contract.
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20.May, 2010 um 12:00 pm
They can do whatever arrangement is made. Was that the arrangement you made?
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20.May, 2010 um 12:06 pm
lawyer percentages depend upon whats agreed upon before they take the case . Most litigation cases are taken by lawyers on a "no fee unless there is a settlement or recovery " basis. Since this generous arrangement allows the client to put up no fee (even if the case is lost and the lawyer is out of pocket for his time and expense) the net settlement may give the attorney a seemingly higher fee than 30% . Again this is the price paid for him taking a case without charging you.
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20.May, 2010 um 12:35 pm
The net proceeds are AFTER all the expenses. You seem to be referring to the GROSS amount.
A contingency agreement always is based on the gross amount of the settlement. If the court awards $100,000 and the contingency agreement is for 30%, the lawyer takes $30,000. Any other costs are irrelevant.
You could of course agree to settle for some portion of the net amount, but that must be agreed beforehand. It makes no difference, the lawyer is basing his agreement on what he sees as the outcome of the case. If the net amount of the above example was projected to be say $50,000 after medical costs, the lawyer (still seeking his $30,000) would be a fool to agree to take the case for less than 60%
People seem to fail to understand that, in a contingency case, the lawyer gets NOTHING is he loses, despite devoting hours and dollars to the case. If you agree to pay him X%, he gets x%, that’s what was agreed.
References :