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Understanding The Basics Of No Win No Fee System

Contingent consideration may take different forms, each of which allocates a certain risk associated with the outcome of the case. The most common linear compensation scheme implies that the client agrees to pay the lawyer a fixed proportion of any monetary benefits that received as a result of the settlement of the dispute or awarded by the court. In most of these schemes lawyer typically pays the client during the trial, knowing that the funds will not be able to return if the case is lost. Therefore, this scheme can be considered remuneration as follows: a fixed cash payment plus a share of the monetary benefits to be received later. Nonlinear compensation schemes are also quite common, usually in these schemes the percentage of contingent consideration decreases with increasing the monetary benefits. In other schemes, the value of the remuneration, acquired by a lawyer depends on whether the case settled or a court decision is made; the effort of the lawyer (estimated in the number of hours spent) may also be taken into account. If the client is not inclined to take risks, he would prefer to share the risk with the lawyer and choose a contract with contingent consideration. But the client is not able to convince the lawyer that the submitted information corresponds to the real state of affairs until the documents are submitted. Therefore, the lawyer may fear that if he agrees to conduct business for contingent consideration, after an expensive collection of necessary documents the case may appear to be fruitless. In this connection, the client will hardly be able to find a lawyer who agrees to conduct business for a reasonable fee. A lawyer can set the size of remuneration, based on its assessment of the likelihood that the case would be unsound and the reward that he will ask for will be determined taking into account the risk. But for the customer, who risk losing the case is lower than average risk, the requested attorney fee is too high. The exceptions are rare, yet they are possible. Thus, making a choice in favor of partnering with an ambitious company, paving its way to the top league may be pay for itself. Forster Dean may be the right agency to team up with – being one of the largest UK no win no fee agencies, it offers quite fair and reasonable terms, and running a good number of offices across the country:

  • Birkenhead (Wirral)
  • Chorley (Lancashire)
  • Crewe (Cheshire)
  • Eccles (Greater Manchester)
  • Ellesmere Port (Cheshire)
  • Hanley (Staffordshire)
  • Harpurhey (Greater Manchester)
  • Leigh (Greater Manchester)
  • Liverpool
  • Liverpool (Bootle)
  • Liverpool (County Road, Walton)
  • Liverpool (Huyton)
  • Liverpool (Old Swan)
  • Liverpool (Tuebrook)
  • Newcastle-under-Lyme (Staffordshire)
  • Oldham (Greater Manchester)
  • Preston (Lancashire)
  • Rochdale (Greater Manchester)
  • Runcorn (Cheshire)
  • St Helens (Merseyside)
  • Stafford (Staffordshire)
  • Stockport (Cheshire)
  • Walsall (West Midlands)
  • Warrington (Cheshire)
  • Widnes (Cheshire)
  • Widnes – Conveyancing Department (Cheshire)
  • Wigan (Greater Manchester)

How can the problem of poor selection be solved? The lawyer in this case is the uninformed party, and can take advantage of the screening strategy. He will offer the customer a set of contracts with different proportions of the contingent consideration, choosing which clients will disclose information about themselves. If a ‘decent quality’ with favorable prospects for obtaining compensation, the client chooses a contract in which the share of the contingent consideration is insignificant and lawyer works primarily on the basis of an hourly fee or a fixed fee. ‘High quality’ claim encourages a business to bet on a favorable outcome. On the other hand, the clients whose cases are evaluated as ‘poor quality’ ones, agree to contingent consideration, thus recognizing that the expected value of the compensation to which they would have to leave, is small, since the probability of winning the case is relatively small.

Alternatively, you may go to Solicitors Guru, the platform gathering licensed legal services providers and pick up a lawyer that meets your requirements.

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