SPECIAL FEE ARRANGEMENTS
Besides standard hourly billing, Legelata is entering into legal risk-sharing arrangements with clients. These arrangements are designed to accommodate clients interested in a fee structure other than traditional hourly billing. In return for investing some or all of our standard fees in the client matter or taking on unusual costs or collection risk, we earn an agreed-upon price based on a set of specified criteria. In these arrangements, we share legal fees and legal outcome risk. Such accounts 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 and partial contingent fee litigation matters and 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 firm's relative investment and risk with the client’s objectives for success in the matter.
Our Special Fee Arrangements are:
LEGELATA offers Fixed Fee Arrangements to represent clients in litigation and provide certain advisory services. This structure makes the predictable cash flow and the resources our clients need to spend to resolve the matter. In litigation, fixed fee services are usually used in regulatory disputes where the other side of the argument is an administrative body of the state.
PURE CONTINGENCY FEE
A pure contingency fee arrangement is the most traditional alternative 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 helpful 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 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 upfront but has a bit withheld contingent upon success. 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 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 matters with clients. As long as the risks are pretty balanced between LEGELATA and the client, no type of matter cannot be structured as a Special Fee Arrangement. While making such agreements, the nature and complexity of the case, the likelihood of success or difficulty in achieving success, the reasonable fees to be incurred, and the client’s objectives for success are considered.