Firms Need To Manage Risk In Contingency Deals

Law360, New York (June 16, 2010, 5:59 PM EDT) -- Under pressure from clients to drop their billing rates, corporate law firms are increasingly turning to the pricing model long favored by the plaintiffs bar. But industry experts warn that when it comes to working on contingency, winning isn't everything.

Contingency fee arrangements, as an alternative to the traditional billable hour, call for a law firm to pay the costs of a matter up front.

If the firm loses the case, it may walk away empty-handed; if it wins the case, it may grab a potentially...
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