Many customers focus on the percentages to be calculated, without carefully thinking about how they are applied to recovery and how the fees are calculated. Potential fee agreements can be divided into three main categories that reflect the basic methods of calculating attorneys` fees. Individual fee agreements are becoming increasingly popular, as lawyers who agree to “pay” the cost of a possible fee are now allowed to deduct expenses as business expenses. If $10,000 is needed to pay an expert`s bill, it is paid from the lawyer`s net pre-tax income, which reduces from US$20,000 to US$10,000 with taxes of $4,900 and remains a net income of $US 5,100. There are a number of laws and regulations that apply to lawyers` fee agreements. Interest on Lawyers` Trust Accounts or IOLTA is a program imposed by certain state laws that vary from state to state. It requires lawyers and law firms to create remunerated accounts for client deposits that are nominal or likely to be short-term. For more information, please contact the State Bar. Lawyers will often seek written permission to bring together other lawyers or companies necessary for the successful prosecution of your claims as co-counsel.

Many lawyers will agree that such a link will not entail any additional costs for the client. Make sure, however, that you will not be charged any excessive percentages so that your lawyer can “refer” you to someone else who will do all the work for a “referral fee”.