Contingent Fee Agreements: The 25% work ethic. Cut rate means, sorry Charlie.

02_2.jpgToday is my day to gripe although I’m working on it. For this New Year I’ve adopted a mantra of sorts: “It is what it is.” That phrase says a lot about just accepting the world the way it is and not trying to figure out how to change everything that is wrong. So that’s it for this year, it is what it is.

But there is something bugging me. A former client telephoned to talk about me taking over his wife’s case. He chose another attorney this time around, I’d represented him several years ago, but this time he wanted a “25% fee lawyer” and he got one. I charge one-third and it has everything to do with it being a fair return and my paying my electric bill.

It’s funny how the lower fee lawyers work with answering the phone, taking time to talk with their clients and with what they take a fee from. This was a workers’ compensation case and it does appear the healing period benefits were disputed so technically the lawyer is entitled to take a fee. Any time an issue is disputed the lawyer can charge a contingent fee for the benefits. With permanency or PPD benefits it’s always disputed.

Here is the odd part; in this case the client telephoned the adjuster, because she was frustrated with the lawyer who wasn’t doing anything. So she called and spoke with the adjuster. The adjuster said they couldn’t talk with the injured worker, which prompted her to say, “You don’t have to talk, just listen. Just listen and I’ll explain why I’m entitled to benefits.” She then did and the adjuster handed her up to her supervisor who agreed and announced she’d get the benefits.

A few days later the attorney announced he’d miraculously got benefits started and now he’s taking 25% of them; which isn’t endearing his client to his “significant talents”. Fact is they want to fire him, and probably will.

I call this the 25% work ethic. You can hire a low percentage lawyer, but if you review the contract you’ll more than likely see an escalation clause that increases the contingent fee as you get closer to trial. That type of provision has always bothered me because it’s too easy for the lawyer to drag his feet to get across the deadline where the fee percentage increases.

The other thing that was pissing off the client had to do with the lawyer’s attitude. They described the lawyer as not answering their calls. I’ve been guilty of that in some cases where the client’s call all the time so I can’t say why or if it’s even true in this case. But we all have overhead and we all pay the power company and the tax man the same which means we all have to earn a certain amount per hour, even with the contingent fee, or else we go out of business. So if you’re charging only 25% it means you’re cutting corners and that can only mean one thing. The fee percentage dictates the effort, the courtesy and the professional courtesy of an answered call. This means you get for what you’re paying for. After all last I checked Sam’s Club and Costco don’t sack your groceries or meet you at the car like Dahl’s does. You get what you pay for.

In the end what are you paying: probably a third and then some? So if you want my advice pay the one-third to a good quality-competent workers’ compensation lawyer and be done with it. After all, it is what it is.

The fee percentage dictates the effort, the courtesy and the professional courtesy of an answered call.

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