It’s Almost Impossible for the Poor to Afford Legal Contingent Fees

May 15th, 2010 by Sophia Rodriguez Leave a reply »

A lawyer has charged a monthly fee of a sixty year-old woman for the past four years. She filed a claim with the state compensation fund office and the attorney helped her win her case to receive a $101 monthly disability payment. One miner, who was disabled, has payed his lawyer monthly for over ten years now. The lawyer collects a big portion of the $134 the miner gets each month.

These cases, though very common, show how legal fees are hard on the poor. The lady who was mentioned has a husband who is bedridden with cancer, so they live on a welfare check. Difficulty paying legal fees affect more than just poor clients. The middle class population is just as affected by the monthly fees the lawyers charge.

According to one author, because the middle class have a little money and they really have no power when it comes to things like legislative decisions, they have become one of the most common victims. Interestingly enough, the middle class also gives us most of our new lawyers. The author wonders what this means psychologically.

Legal fees are usually made on a hourly basis. One compensation case lawyer states that doctors and plumbers get paid for their work. So should lawyers. Of course there is no one who thinks lawyers should provide their services for free, but the issue is how much should they be paid and for how long? Sometimes the fees that lawyers charge are for a lifetime, even if they’ve only provided services for a divorce, a probate will, or a personal injury case.

Then there are attorneys who steal the very money that they are supposed to be managing for widows and orphans. Of course, those are the obvious ones, unlike those that rob you by charging large fees for their services. One partnership charged so much in fees, it took approximately 60 per cent of an estate worth six figures! Having been ruled incompetent by the court, the owner of the estate did not manage his own affairs. The partners involved in this case were ordered to make restitution to the estate for the monies they took. A different lawyer, who was regarded as a little odd, brought suit against the fraudulent lawyers. He was the only lawyer who would take the case.

Media sources make this issue worse. They don’t report on all of the court’s dealings. Though the fees awarded guardians and lawyers are certainly newsworthy, this isn’t widely reported. It is easily seen at local courts. Bar associations exert pressure, as well. They are constantly defending the relationship between the client and the lawyer, stating there shouldn’t be any interference between the two. Should a story that may put the legal profession in a dark light be reported, the bar association quickly acts.

Typically, attorneys fees are based on actual time expended, but many attorneys are only accepting the contingency or percentage arrangement from their clients. One bar association lawyer wants minimum fee agreements imposed on all cases. This is called a contingent fee and awards the lawyer a percentage of the winnings, if the case goes in his or her favor. This contingency amount can be anywhere from 25 per cent to 50 per cent in personal injury and other tort cases.

Just like poker, Americans invented the contingent fee. Europeans are not fans of contingency fees, and won?t allow them. In 1848 many workers needed help getting money for their on-the-job injuries, and that is how contingency fee arrangements were started. In order to begin a civil suit, you needed the money up front, and a contingency arrangement was the only way to do that.

Get more help on the topic of car accident compensation claim. tac claim melbourne information is only a click away.

Advertisement

Leave a Reply

Anti-Spam Protection by WP-SpamFree