More on Contingent Fees

Two professors from the Hebrew University of Jerusalem have conducted a fascinating study on client behavior involving contingent fees. (You can download the entire article for free from the linked abstract.) The study seeks an answer to the questions:

(1) Contingency fees are obviously beneficial to those that cannot afford hourly fees. But why do plaintiffs who can afford hourly fees prefer contingent fees even when the contingent fees might result in higher fees than an hourly rate?

(2) Why are contingent fees relatively uniform?

(3) Why don’t defendants use contingent fees?

I don’t have time today to post a lengthy summary of the article, but it is worth reading for those interested in the use of contingent fees.

Thanks to TortsProf and Point of Law for the link.

Other links of note:

In Defense Of The Contingent Fee (from us)

David Giacalone’s response to our post

How to Negotiate A Reverse Contingent Fee (Blawgletter)

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