Legal Question in Civil Litigation in California

Fee of attorneys (Success) in the USA when using ADR

I would like to know how the lawyer's fees fit together with the high use of alternative dispute resolution mechanisms(ADR)in the US. Often attorneys are paid only in case they succeed (in court). How is this handled concerning ADR? How is success defined then? Or are they always paid on hour-basis when using ADR? I want to understand, if lawyers have reason to convince their clients to use ADR instead of the traditional court or if it is only the clients's interest to use it.


Asked on 8/08/01, 3:36 am

5 Answers from Attorneys

Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Fee of attorneys (Success) in the USA when using ADR

When an attorney advises using Alternative Dispute Resolution, in a case where a contingent fee is common, there is no reason for the attorney to go to a billable hourly rate. Alternative Dispute Resolution has grown in popularity in the last 10 years, because it is far faster than the courts, although ADR has caused the courts to go to a "fast track" approach to litigation, which has narrowed the time. ADR is also more informal and generally more comfortable for the lawyer and the client. ADR includes, Arbitration and Mediation. Arbitration is where an appointed arbitrator listens to evidence and makes a decision, which may or may not be binding on the parties. Mediation, on the hand, is where an impartial mediator attempts to bridge the positions of the parties and to effect a settlement. Alternative Dispute Resolution works extremely well for the attorneys and parties. Discuss the fee with your attorney, before the arbitration or mediation.

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Answered on 8/08/01, 10:16 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Fee of attorneys (Success) in the USA when using ADR

Whether ADR is good or bad for a client depends on the individual case and client. Attorney fees are a matter of contract and basically whatever the client and the lawyer can agree on will control.

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Answered on 8/08/01, 11:51 pm
John Hayes The John Hayes Law Offices

Re: Fee of attorneys (Success) in the USA when using ADR

ADR is usually in everyone's best interest ie: the attorneys, the parties and the courts. The courts actually implemented this system to help unclog the judicial system since it was taking several years for a case to even get to trial. ADR is simply an alternative to court. It usually takes the attorney the same amount of time and expense to prepare for ADR since essentially it is a judge trial with a neutral attorney presiding instead of a judge. The fees the attorney collects depends on the fee agreement they have with their client. If it is a contingency fee than they are still entitled to their percentage if the judgement is entered in their clients favor.

John Hayes, Esq.

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Answered on 8/09/01, 3:31 am
Judith Deming Deming & Associates

Re: Fee of attorneys (Success) in the USA when using ADR

Lawyers and clients are free to enter into any arrangement they desire in the U.S. and it is no different in ADR than it is in trial litigation. Contingency fee cases are customarily entered into by attorneys representing clients who are, or would be, plaintiffs (as opposed to defendants, or those from whom money is sought), and they can agree to represent the client for a percentage of the recovery, if any, in either trial or ADR, it works out the same. With respect to defendants, attorneys RARELY represent these parties on other than an hourly rate basis, or sometimes, a "flat-rate" basis.

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Answered on 8/08/01, 1:09 pm

Re: Fee of attorneys (Success) in the USA when using ADR

The handling of an attorneys' fee for alternative dispute resolution (ADR) is typically the same as for any other case. If it is one where a recovery can be made and is likely to be made a contingency fee is possible, i.e., the attorney is paid the fee based on a percentage of the amount, if any, recovered.

In other cases such as where the attorney is representing a defendant (person being sued) where there is nothing for the defendant to recover from the other party, then the attorney is paid on an hourly basis for his/her time.

Let me know whether you would like to speak with me about more specific issues.

J. Caleb Donner

LEGAL WARRIORSsm

805-494-6557

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Answered on 8/08/01, 3:42 pm


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