Legal Management, the magazine of the Association of Legal Administrators (ALA), quoted Matt Fletcher in an article, “The Case for More Contingency-Fee Work,” posted in its November—December 2024 edition.

Matt said, “Alternative fee structures can help a client get a big case to trial, especially when the client cannot support a traditional hourly rate structure. Against a well-heeled defendant, a contingency fee can level the playing field.”

Matt added that law firms also might be able to utilize contingency fees to “enhance operations and revenue as scheduling allows.”

“Contingency fee cases offer training opportunities for younger lawyers — and can be used when hourly fee work is not as active,” he said.

Matt also noted that a lawyer’s passion for a certain cause, or a positive response to a likable plaintiff with an interesting story, can influence a decision to take a case. He recalls how such a client — who had been defrauded into selling his company — had engaged a high-profile law firm but found its fees unaffordable. In competing for the case, Matt’s firm received a sizable contingency fee, but he valued his role in helping the client recoup what he had lost even more than the compensation.

Although Matt said that the formula for contingency fee structures is not an exact science, certain elements can apply.

“The judgment must be collectable; we want to know if the defendant is solvent or there is insurance coverage,” Matt said. “You want to know how many depositions need to be taken, what expert testimony you need and how long a trial might take — this will help develop a reliable estimate of what the firm is going to invest, so you can compare it to the potential recovery.”

Read the article on the ALA website here.