All fee agreements in which a contingency fee will be charged, in your case 40%, must be in writing and must specify how much, usually a percentage, your attorney shall receive as a fee. The fee agreement should specify whether the fee is taken from the gross amount collected or from the net. If the fee is based on the net amount, the fee agreement should specify what items are deducted from the gross recovery to determine the net amount. Costs and expenses ("legal fees"), depending on the fee agreement, may be taken in addition to an attorney fee based on the gross amount recovered or may be an item that reduces the attorney fees (so the fee is based on a net recovery). Did you sign a written retainer or similar agreement with the attorney? If so and it says your attorney is entitled to 40% plus his out-of-pocket expenses then your options are: discharge the attorney; try to re-negotiate the fee; or accept the agreement as it is. If you did not sign a written agreement your attorney cannot collect 40% of any settlement, verdict or judgment. At that point you and the attorney can either try to agree on a fee percentage or you can look for a new attorney. As to what are "normal rates" there are not necessarily any "normal rates." The rates an attorney charges depends on a number of factors, including, but not limited to: the fee customarily charged in the locality for similar legal services; the time limitations imposed by the client or by the circumstances; the nature and length of the professional relationship with the client; and the experience, reputation, and ability of the lawyer or lawyers performing the services. A 40% contingency fee is not necessarily "crazy" especially if the likelihood of your winning is small or based on other factors.
Answered on Mar 20th, 2013 at 11:10 PM