Special Fee Arrangements
Besides standard hourly billing LEGELATA is entering into legal risk-sharing arrangements with clients. These arrangements are designed to accommodate clients who are interested in a fee structure other than standard hourly billing. In return for investing some or all of our standard fees in the client matter, or for taking on unusual fee or collection risk, we earn an agreed upon fees based on a set of specified criteria. In these arrangements we share in both legal fee and legal outcome risk. Such arrangements are maintained in strict confidence.
Special Fee Arrangements are agreements between LEGELATA and the client to provide compensation to LEGELATA based on a structure other than hourly billing. Special fee arrangements can be hybrids in which LEGELATA receives a percentage of its hourly rate, with the remainder contingent on the outcome of the matter.
Our Special Fee Arrangements include pure contingent fee and partial contingent fee litigation matters, fixed fees in litigated and non-litigated matters. At LEGELATA we are prepared to discuss and pursue any reasonable risk-sharing fee structure that balances the relative investment and risk taken on by the Firm with the client's objectives for success in the matter. Our Special Fee Arrangements are:
LEGELATA offers Fixed Fee Arrangement for representing the clients in litigation and providing certain advisory services. This structure is used to make predictable the cashflow and make certain the resources our clients need to spend for resolving the matter. In litigation fixed fee services are usually used in regulatory disputes where the other side of the dispute is an administrative body of the state.
Pure Contingency Fee
A pure contingency fee arrangement is the most traditional alternative fee arrangement in which LEGELATA receives a fixed percentage of any recoveries in a lawsuit brought on behalf of the client as a plaintiff. Pure contingency fees can be useful structures in many plaintiff cases seeking monetary or monetizable damages. They are often appropriate when the client is an individual, start up, or corporation with limited resources to finance its litigation. Even large clients, however, appreciate the budget certainty and risk-sharing inherent in a contingent fee arrangement.
Partial Contingency Fee
A partial contingency fee arrangement is when LEGELATA receives a portion of its hourly rate /not more than half of fixed billing/ plus a fixed percentage of any recoveries in the lawsuit. Partial contingency fees are most common in plaintiff cases seeking monetary or monetizable damages, however, they are not limited to such matters. Defense cases can also be structured as partial contingency fees with success contingent on agreed upon results or milestones being achieved.
A holdback/success fee arrangement is similar to a partial contingency fee in that LEGELATA is paid a portion of its fees up front, but has a portion withheld contingent upon success in the matter. If the matter is concluded successfully, LEGELATA receives a multiple of the holdback or an agreed upon success fee. This structure is often used in defense cases or when the result sought in the matter is not monetary.
Other Fee Arrangements
The examples provided above are not meant to be exhaustive. LEGELATA is willing to discuss any alternative fee arrangement structure for all different types of matters with clients. As long as the risks are fairly balanced between LEGELATA and the client, there is no type of matter that cannot be structured as a Special Fee Arrangement. While making such agreements the nature and complexity of the matter, the likelihood of success or difficulty in achieving success, the likely fees to be incurred and the client’s objectives for success in the matter are considered.