by John Darer CLU ChFC CSSC
The Question: How do lawyers get paid in structured settlements?
The Answer: If the lawyer or firm is not structuring his/her/its fee then the lawyer's fee is a percentage of the gross settlement less expenses. If the plaintiff is accepting a structured settlement, then the lawyer's fee, for the structured settlement component, is generally a percentage of the cost of the structured settlement.
A. Whether or not the Lawyer or Law Firm is Structuring Their Attorney Fees
Lawyers should check their retainer agreements to be sure that the retainer agreement expressly speaks to how the fee is calculated in the event the plaintiff accepts a structured settlement as part of the resolution of their case. The retainer agreement should also address the issue concerning the structuring of attorneys fees.
B. If The Lawyer or Law Firm IS Structuring Their Attorney Fees
Lawyers or law firms interested in structuring their attorney fees must be proactive. Complex issues may need to be addressed depending on the form of the legal entity under which that the law firm is operating. Lawyers must take some steps to get the result they want in structuring their fees, well in advance of any recovery.
For more on structuring attorney fees click here
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