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Practical Fee Considerations
We've talked somewhat about some general fee considerations, but as I have more clients coming in the door (Yay!) I am finding that I'm curious about how to determine what types of fees to use and how much ethical leeway I have to modify traditional fee structures.
Recently I have been getting some people in who are looking at doing contingency fee cases, but I was wondering if the typical structure ("I take a third") can be modified. For instance, I have a client looking to recover a lot of money, and he offered me ten percent. That ten percent is still a lot of money, but it doesn't necessarily pay me for the risk I would be taking by agreeing to a contingency fee. Could I instead propose that he pay me a flat fee of 15%, which is far below the industry standard, and allows
me to not take such an enormous risk, but at the same time allows him to come out with much more for himself if all the money is recovered?
Generally, I am interested in whether basing flat fees on a percentage of the amount desired by the client makes sense, if it's ethical, and if I'm doing myself a service by taking that lower percentage than the industry standard contingency fee.
Does anyone have any thoughts on this?
Thanks. I hope you are well.