QUESTION
If the attorney was to get his percentage plus a portion of the attorney's fees awarded to me wouldn't that be double payment?
Asked on Mar 10th, 2014 on Entertainment Law - California
More details to this question:
I have a breach of contract case and my agreement has an attorney's fee clause. With that said, I am considering going on a contingency basis with a lawyer, but I want to know how it will affect collecting my attorney's fees assuming I am awarded them. As I understand it, the lawyer collects his "fees" via the percentage we agree upon from the winnings and the attorney fees award goes to the plaintiff. Is that correct? If the attorney was to get his percentage plus a portion of the attorney's fees awarded to me wouldn't that be "double payment" since I have already paid his fees with a percentage of my winnings? On the contrary if I was to not do a contingency would an attorney charge for collecting attorney fees, and if so how would they normally charge?
2 ANSWERS
An attorney can not charge both an hourly fee and a contingency fee unless this was specifically spelled out in the Letter of Engagement signed by the client. Under a contingency agreement, the attorney subtracts his/her percentage (plus expenses if that is what the parties agreed to) and the client keeps the rest. FYI: if you already have a signed agreement with the attorney that spells out the form of reimbursement for the attorney, he/she has no obligation to agree to another form of payment just because you have changed your mind.
Answered on Mar 12th, 2014 at 8:51 AM
Susan Marie Basko
Some courts have said that this is double-dipping. In one case, the Judge even put in a bar complaint against a lawyer for trying to do this, because the end amount was the lawyer being overpaid. It may be different in different situations.
Answered on Mar 12th, 2014 at 8:50 AM