Fee structure


A client is not charged attorney fees if he loses the case. If the client recovers damages from settlement or a favorable verdict, the attorney receives a fee from the recovery. The attorney's permitted fee varies depending on the country, and even local jurisdictions. In the US, for example, the fee is generally based on the contractual agreement between the attorney and the party, but is also limited by local rules for "reasonableness". See e.g., Miss. Rule of Prof'l Conduct 1.5. The fee is calculated as a share of the eventual damage judgment or settlement won by the client. The percentage allowed is subject to the ethical rules of professional conduct, and in many circumstances, statutory limitations. In the UK, on the other hand, the client is liable for normal fee (based on hourly billing plus a profit element) plus a success (or bonus) fee. The amount of the success is limited to 100 per cent of the normal fees. Most lawyers charge a success fee which is much less than this, between 25 and 50 per cent. In English law fees are subject to compliance with the statutory scheme.



Most jurisdictions in the United States prohibit working for a contingent fee in family law or criminal cases, as made clear in Rule 1.5(d) of the Model Rules of Professional Conduct of the American Bar Association.[9] In the United States, contingency fees are the standard in personal injury cases and are less common in other types of litigation.
In rare cases, the contingent fee is equal to or more than 100 per cent of the recovered damages. These rare cases, criticized by some as an inappropriate vehicle for vengeance, result from a greater desire on the part of the injured to punish the defending party than in order to personally recover damages, so that they offer a very large contingency to their attorney in order to assure the highest chances of winning. However, these arrangement are exceedingly rare, and indeed illegal in many jurisdictions. A notable exception is Nevada, in which it is common vehicle for prosecution, by casinos, of petty thefts against them. In these cases a fractional contingency fee would not represent sufficient motivation for their attorneys, with the casinos motivated more by the fear of losing these cases than in recovering the petty damages involved.

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