Re: [CollabLaw] Contingency Fee Cases

  • From: Kimberly A. Schavey <kimberly@xxxxxxxxxxxxxxx>
  • To: CollabLaw@xxxxxxxxxxxxxxx
  • Date: Fri, 27 Aug 2004 06:53:48 -0600

Dear Stacey:

Just an early morning thought on this subject...even the percentage of a contingency fee seems to me to be up for grabs in a successful collab p.i. case. Being compensated for our work, as professionals (from EVERY profession) is a big part of the collab agreement. It seems to me that there may be more satisfaction for plaintiffs because often the % of the contingency fee ends up causing the end result to feel uncomfortable for the plaintiffs (especially when costs come off the top). This way dollars could be discussed, tracing to the practical outcome for all parties and professionals involved.

This is coming from a 16-year lawyer who has never done a p.i. case. Please forgive if I'm making any big gaffes here.

I did, however, successfully facilitate a divorce this week where the 25 year old husband was permanently disabled when his in-laws' balcony collapsed. (and the lawyers tried to tell me this had NOTHING to do with the divorce--ha--hubby stated that mother-in-law knew the railing was going bad). So, hubby is suing his soon-to-be-former-in-laws for policy limits. How might this whole case, this whole family (2 little boys involved) be different if the divorce was not subject to the echo of the p.i. litigation? And what a tough spot for wife to be in--stuck between the father of her children and her parents!

It is so beautiful to see the "curve of the earth" as collaboration keeps stretching!

Have an awesome weekend, everybody!
Kimberly A. Schavey, P.C.
3900 Juan Tabo Blvd., NE
Albuquerque, NM  87111-3984
505-839-1965
505-298-3939 fax
Kimberly@xxxxxxxxxxxxxxx
www.NMFamilyLaw.com
Board Certified Family Law Specialist
Member of New Mexico Collaborative Law Group
On Aug 25, 2004, at 9:03 AM, staceylangenbahn wrote:

I am a personal injury defense lawyer.  I believe CL could be used to
 resolve many types of injury cases.  The insurance company people I
 have talked to are very interested in CL as a way to save costs.  How
 do I sell the idea to the Plaintiff's bar?  These cases usually are
 taken by a Plaintiff's lawyer on contingency.  My understanding is
 that the Plaintiff's bar in Texas objected in the past to Cl's
 application to contingency cases.  If a collaborative lawyer takes a
 Plaintiff's case on contingency, and then it does not settle and the
 Plaintiff gets a litigation lawyer, how does the Plaintiff's CL
 lawyer get paid?  The options as I see them are for the CL lawyer to
 agree with the Plaintiff and the litigation lawyer that the CL lawyer
 would receive quantum meruit for the work the CL lawyer has done (but
 if all that work is considered confidential and inadmissible, how
 does the CL lawyer show what work s/he has done and how the CL lawyer
 contributed?)  The CL lawyer could take a referral fee.  I was
 initially concerned that a CL lawyer's taking a referral fee would
 give the appearance that the CL lawyer maintains an interest in the
 litigation and that the CL lawyer may have incentive not to give full
 effort to settlement in the CL process.  However, upon second
 thought, I realized this would rarely be the case.  The CL lawyer has
 greater incentive to settle, because then the CL lawyer would take
 the entire contingency fee, rather than an uncertain referral fee
 which amount depends on what the litigation lawyer settles for a jury
 awards.  What are your thoughts?

 Regards,

 Stacey H. Langenbahn
 Attorney and Mediator
 Locker & Lee, P.C.
 6600 E. Campus Circle Dr., Suite 310
 Irving, TX  75063
 (214) 698-3003
 (972) 465-7997 fax
 stacey.langenbahn@xxxxxxxxxxxxx




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