The Kanthaka Group often accepts cases on a contingent fee basis. Most often these are personal injury cases, like automobile accidents. Certain cases are unable by the Rules that govern attorneys, from being accepted on a contingent fee basis. (i.e. criminal defenses, divorce, etc.) When we accept a case on a contingent fee basis, the client is only required to pay for attorney fees from the proceeds or recovery that the case generates and then only as a percentage of the recovery. The client is always responsible for costs that are incurred; though the agreement may defer their payment until after the matter is concluded.
Now here is a big difference between Kanthaka Group and most other firms in our immediate service area. WE CHARGE CONTINGENT FEES ON THE NET RECOVERY! What does that mean to you, the client? We consider contingency fees based upon gross recovery to be, well in a word, GROSS.
Let’s say that you were in a traffic accident and were injured. And, let’s say that you recovered $100,000 after trial. Here is how these two different calculation methods stack up.
NET RECOVERY GROSS RECOVERY
Recovery $ 100,000.00 Recovery $ 100,000.00
Costs of Litigation 18,000.00 Contingent Fee .33
Net Recovery 82,000.00 Fee Paid to Attorney 33,333.00
Contingent Fee .33 Costs of Litigation 18,000.00
Fee Paid to Attorney 27,060.00 Paid to Client $ 48,666.67
Paid to Client $ 54,940.00
In the Kanthaka Group, with our contingency fees based upon net recovery, the client receives, in this example, nearly $6,300.00 more in their pocket. (Under a “gross” recovery calculation, your attorney would have to be charging a fee of about 27% for you to get a comparable settlement.)
Perhaps here should be a quick note about our billing practices for contingent fee clients. Every client will receive a monthly invoice; even those on a contingent fee arrangement and for whom the Firm is advancing costs. The reason is not because we expect a payment from these clients, but because the monthly invoice is a way to communicate with you the costs that are being incurred and the services that are being rendered on your behalf by the Firm.