Legal Question in Business Law in California

Attorney fees

I, with the help of an attorney, have come to a settlement agreement (nothing signed yet) with an old employer.

My attorney's retainer agreement reads ''40% of the recovery if the case is resolved before any Notice Of Appeal or Petition For Writ of Mandate/Prohibition is filed in the action.''

It also states if the offer of settlement entails a sufficient sum to provided us at least a minimum attorney's fee based on the above contingent fee formula, such formula shall apply to any settlement agreed to.

We settled for the sum of $27,500. From the first draft settlement agreement: ''The Settlement Payment will be allocated and paid as follows: 1) the amount of Two Thousand Seven Hundred and Ninety Five Dollars and Forty-eight Cents ($2,795.48) for wages, less applicable payroll withholdings; 2) the amount of Nine Thousand Seven Hundred and Four Dollars and Fifty-two Cents ($9,704.52) for emotional distress attributable to the alleged violations of FEHA, and 3) the amount of Fifteen Thousand Dollars ($15,000) for attorney fees and costs pursuant to the agreement between (me and my attorney).

does he get $11,000 or $15,000?


Asked on 1/08/07, 12:33 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Attorney fees

The settlement agreement is a contract between you and the other party, not between you and your attorney. Therefore, I would say the fee agreement between you and your attorney should prevail. If your attorney doesn't agree, I'd point out that California has mandatory arbitration of attorney-client fee disputes (if the client wants it, the attorney must submit to it).

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Answered on 1/08/07, 12:43 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Attorney fees

It is difficult to give you a complete response without reading the ful fee agreement. For example, I cannot tell from what you have posted if the 40% fee is based on the gross settlement or the net settlment after expenses. However, you do correctly note that $11,000 is 40% of the $27,500 settlement.

Plese note that the attorney allocation refers to both fees and expenses. Some attorneys will make hard costs reimburseable in addition to the legal fees in a contingent fee case. You need to review the fee agreement thoroughly to see what it says in this regard. If the attorney is claiming an expense reimbursement, you should get an itemized statement showing what the expenses are.

Finally, you should consider making an appointment with a local attorney that can review the fee agreement for you and give you further advice.

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Answered on 1/08/07, 12:47 pm


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