By: Shernoff Bidart Echeverria LLP
March 25, 2013
Share This Post
WHY DON’T ALL LAWYERS WORK ON THE CONTINGENCY FEE BASIS?
Many corporate lawyers and lawyers who defend insurers are paid by very wealthy companies. As these lawyers often defend those companies, there is no winning verdict from which to take a percentage. So they must charge by the hour. Because of this, they benefit from lengthening the paper trail involved in legal actions. The longer the case drags on, the more difficult it is for a law firm working on a contingency – fee basis to sustain its cause of action against them – and the more hours they are able to bill their clients.