ABSTRACT

An understanding of the debate over the merits of the contingent fee requires some information concerning other types of fee arrangements. This chapter examines the ways in which fees differ according to the source of authority for setting fees. It describes the American lawyer usually thinks of himself as the one who sets his fees, and he looks with concern at arrangements which leave this authority in other hands. Fees can be categorized according to source of authority. The chapter discusses some of the principal uses of contingent fees and also examines their differences from and similarities to other types of fees. Contracts between lawyer and client for the payment of fees on a non-contingent basis, based on estimates of the work and time required, although not common, are not infrequent. The collection of overdue commercial accounts is a highly organized business in which lawyers are typically paid on a contingent fee basis.