Armin Hohenadler

In appropriate cases, the law firm and the client may benefit from conditional pricing agreements. The company and the customer go up and down. Some of Ogborn Mihm`s commercial customers also appreciate potential pricing agreements, as the agreements allow the customer to better manage budgets and risks. Quota pricing agreements provide access to justice for individuals and businesses who would otherwise not be able to afford to take legal action. Depending on the nature of the case, individuals or companies that are very successful financially may also not be able to sue without a conditional pricing agreement or other alternative pricing system. In addition, even if a case is tailored to a conditional pricing agreement, a law firm must carefully manage its resources and cash flow. For example, lawyers cannot accept potential costs if they feel the case will be so demanding that it will affect their ability to represent other clients or pay overhead during the case, or if the potential return on time and money does not justify the risk. Under these conditions, a lawyer may represent the client on a traditional hourly basis, a hybrid conditional hourly royalty base or with other AFAs. Lawyers and law firms can also work with other law firms to spread risk and reward. 2.

If the flat fee exceeds USD 1,000.00, the client`s agreement to deposit the flat tax on the lawyer`s operating account and the information required in paragraph b) (1) is fixed in a letter signed by the Client. Many serious cases are not suitable for conditional pricing agreements for a variety of reasons. For example, if a lawyer defends a company in a lawsuit, a good outcome for the client can result in a court victory or an order granting a summary assessment application. The good result is that the customer does not have to pay judgment or transaction. Despite the correct result, such an outcome does not create funds from which counsel can collect a conditional fee, so a conditional agreement would not be appropriate in such circumstances. However, such a case may be appropriate for a reverse contingency pricing agreement or any other alternative royalty regime. The first important point for lawyers who accept the lump sum fees under the new rules of professional conduct is that the lump sum agreements should be made in writing, regardless of the amount of the flat fee, since the lawyer must state in writing that the client could require that the lump sum be paid into a CTA and that the client is entitled to a refund of a portion of the lump sum that has not been earned. The lawyer must make these written disclosures for each lump sum agreement, so that the lawyer back up a written agreement in order to deposit the lump sum fees into the lawyer`s operating account for all lump sum cases if the lawyer intends to use the operating account.