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Hybrid fees and fee arrangement conversions
 Occasionally it makes economic sense for me and my clients to agree upon a "hybrid" fee arrangement, like a flat fee or "earned retainer" that will take us through one stage, with a different arrangement thereafter. Or to hedge my risks and lower the client's out-of-pocket costs, but still create appropriate incentives for us both, sometimes a client and I will agree to a combination of a reduced hourly rate plus a contingent fee. Sometimes developments may make a case that started as an hourly-rate matter become more attractive to both me and the client as a contingent-fee matter. Or a client who originally preferred to pay hourly-rate bills (instead of giving up a percentage of his claims) may fall into financial distress. If we agree to convert our initial fee arrangement into something else, I will prepare a revised engagement letter for both of us to sign. |
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