Business litigation and contingency fees – Educate yourself before hiring a legal expert

Has your business ever been a part of any legal matter? If yes, you must have heard the two phrases – contingency fees and business litigation. Conventionally, it is common to associate the term contingency fees with personal injury lawyers as they are believed to follow this method of payment. But this is no longer the case in the legal field.

Before you move on to understand what business litigation is and whether it can be initiated under the contingency fee agreement, let’s take a quick look at the details discussed here.

Contingency Fee – What is it?

The sum of money that a lawyer receives once the case is won is called the contingency fee. This is in stark contrast to the conventional form of attorney payment, which is hourly payment. Whenever a lawyer accepts a case in a non-contingency way, they demand payment in an hourly manner. In some other cases, they demand a flat charge for the case. Here, the outcome of the case has no relation to the payment of the lawyer.

On the other hand, lawyers who work on a contingency fee basis only get paid when the case is won. This is why people call these lawyers “no-win-no-fee” lawyers. If you are looking for the help of an experienced business litigation lawyer, click here.

Business Litigation – What is it?

The complex legal matters that arise in a business and its commercial relationships are called business litigation. Business litigation is totally different from the other aspects of business law. It is aimed more toward solving disputes and safeguarding the interests of a business.

There are instances when companies might get involved in disagreements over finances, financial contracts, intellectual property, management practices, and several other problems. It is then that a business litigator steps in to solve such commercial problems in a way that doesn’t cause harm or abuse to the businesses involved.

Can you pursue business litigation via a contingency fee basis?

There are certain benefits of a contingency fee basis in cases of business litigation. Let’s check them out:

• Safeguards the rights of your business: You don’t have to pay upfront fees and hence this protects your business interests right away.
• Lets you pay for the result and not for time: Under a traditional fee model, the lawyers purposely take more time to reach a solution. They get more money for the time they invest. But in a contingency fee structure, the lawyer tries to incentivize to receive maximum compensation within very less time.
• Gives you access to resources of bigger companies: Thanks to a contingency fee model, that different legal services are made accessible to businesses of all sizes. Unlike the conventional method of payment, all businesses gain access to the resources of bigger corporations.

Therefore, if you own a business and your business has recently been involved in a litigation case, you should seek the help of a business litigation lawyer. Schedule meetings with such lawyers to make sure that the lawyer you’re hiring is the best for your specific business situation.

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