# Lawyers: What is ethical when working on contingency?

**URL:** <https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226>\
**Category:** In My Humble Opinion\
**Created:** [October 3, 2019, 10:49pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226 "2019-10-03T22:49:19Z")\
**Posts on this page:** 5\
**Page:** 2

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**Author:** ![Gray\_Ghost](https://avatars.discourse-cdn.com/v4/letter/g/c0e974/32.png) [@Gray\_Ghost](https://boards.straightdope.com/u/Gray_Ghost)\
**Post date:** [October 9, 2019, 8:57pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226/21 "2019-10-09T20:57:08Z")

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> [@Really\_Not\_All\_That\_Bright](#):
>
> That would be unusual in the contingency context. Typically, contingency fees are structured without reference to whether there is a settlement. For example, in Florida the bar rules allow a lawyer toclaim a fee of up to one-third of the recovery if the case is presuit, or up to 40% once a complaint is filed. It doesn’t matter whether there is a _trial_ or not.

Maybe it’s different here. The ones I’ve seen—and it was awhile ago—were e.g., 25% if settled, 30-40 if verdict or judgment, 40 or more if appellate work were required. But definitely a lower amount for settlement. I think the rules here allow for a higher recovery than the FL rules do.

It could very well be that I misread the agreement where it said presuit or before complaint was filed, and thought it meant settlement.

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**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\
**Post date:** [October 10, 2019, 2:00pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226/22 "2019-10-10T14:00:08Z")

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A fee structure which encourages the lawyer to litigate a case to conclusion is also unlikely because it contravenes fairly widespread public policy (one of the few policies that both legislatures and the bar agree on) that Settlement Is Good. I suspect what you may have seen is either the structure for fees that the lawyer might be able to collect from the opposing party (e.g., in a bad faith or sanctions context), which are included for the client’s information only.

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**Author:** ![ZonexandScout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zonexandscout/32/544_2.png) [@ZonexandScout](https://boards.straightdope.com/u/ZonexandScout)\
**Post date:** [October 10, 2019, 2:46pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226/23 "2019-10-10T14:46:23Z")

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IANAL, but based on my experience as a PI and an expert witness, I can tell you what often happens.

Let’s say we have a slip & fall case. The plaintiff asks for $3M. The plaintiff’s attorney thinks they have a good case because the plaintiff is in a wheelchair.

Along the way, a PI gets video of the plaintiff bowling in a league (out of the wheelchair) and square-dancing several times a week. The video is shown to the plaintiff and his attorney in a private meeting.

As the PI who got the video for the defense, I expect the plaintiff to drop the lawsuit and slink back home. Nope. The plaintiff’s attorney takes the plaintiff into a conference room and says, “Look…you screwed up. Settle for $50K and be glad you’re not going to jail or being countersued. $50K just about covers our expenses so far.”

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**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\
**Post date:** [October 10, 2019, 4:46pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226/24 "2019-10-10T16:46:13Z")

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> [@allyn](#):
>
> Kind of relevant:
> 
> Elizabeth Holmes/Theranos can’t pay her lawyers; lawyers want to quit…
> 
> [Theranos: Ex-CEO Elizabeth Holmes can't pay lawyers, they say](https://www.mercurynews.com/2019/10/03/theranos-disgraced-founder-elizabeth-holmes-cant-pay-lawyers-lawyers-claim/)

When I hired a lawyer for my divorce, she wanted $5,000 up front before she began working. Why wouldn’t Holmes’ lawyers do the same?

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**Author:** ![Acsenray](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/acsenray/32/4519_2.png) [@Acsenray](https://boards.straightdope.com/u/Acsenray)\
**Post date:** [October 10, 2019, 4:56pm UTC](https://boards.straightdope.com/t/lawyers-what-is-ethical-when-working-on-contingency/841226/25 "2019-10-10T16:56:11Z")

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> [@kayaker](#):
>
> When I hired a lawyer for my divorce, she wanted $5,000 up front before she began working. Why wouldn’t Holmes’ lawyers do the same?

Maybe they did have a retainer, but when the clients check out as relatively dependable, the retainer is not going to cover the entire cost of the representation in advance, especially for extensive litigation.

(Just as a matter of interest, when you pay a lawyer in advance, many (if not all) state bar associations require the sum to be held in a separate account and the lawyer can draw from it as E earns it according to es regular fee schedule.)

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