Legal Question in Credit and Debt Law in New Jersey
What is customarily meant by a "contingent fee" for legal services, relating to a suit for collection of money owed? More specifically, Iss a nonrefundable advance of a substantial amount to the attorney representing the plaintiff by the plaintiff, for credit to any contingent fee payable in case of a favorable judgment or settlement, in addition to advance of a lesser and nonrefundable amount for expenses, customarily part of a contingent fee understanding? There is no written delineation of the contingent fee arrangement, only an agreement suit would be brought on a contingent fee basis.
1 Answer from Attorneys
A contingent fee is one that is dependent on the outcome of a case. In its purest sense, the contingent fee is not owed unless a successful outcome is obtained. Contingent fees must be in writing under the NJ rules. They are not appropriate in certain types of cases. What you have seems to be a type of hybrid fee arrangement. That is not improper provided that the fee taken as a whole is reasonable and the other requirements are met.
See http://www.judiciary.state.nj.us/rules/apprpc.htm#x1dot5
See also: http://info.corbettlaw.net/lawguru.htm
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