More Businesses Are Seeking Contingency Fee Agreements With Their Law Firms, Texas Attorney Says

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Texas business litigation attorney Jack Zinda of Heselmeyer Zinda, PLLC, says that a fee arrangement commonly used with individuals in personal injury cases may also be ideally suited for businesses during uncertain economic times.

Jack Zinda

Our law firm believes that you have to be flexible and accommodate your client's unique situation. So, we will work with our clients to arrive at the best agreement and plan for their case.

Even though the National Bureau of Economic Research recently announced that the “Great Recession” ended in June 2009, it’s clear the economic climate still remains uncertain for many Texas businesses, Austin business litigation attorney Jack Zinda says.

That’s why more businesses are seeking a type of legal fee arrangement that has, in the past, been exclusively used by individual plaintiffs in personal injury cases: The contingency fee.

Under a contingency fee arrangement, a client does not pay for legal services unless there is a recovery. The attorney receives a percentage of the recovery upon resolution of the case.

“Traditionally, businesses have almost strictly paid for legal services on an hourly basis, but given the current economic reality, that is no longer feasible for every company,” says Zinda, whose law firm, Heselmeyer Zinda, PLLC, represents clients who own small, medium and large businesses from its offices in Plano, Austin and Round Rock.

“If a business is facing a dispute over a contract, partnership, insurance claim or non-compete agreement, it may not be able to tie up large amounts of cash or capital in litigation, so a contingency fee or some other alternative to the billable hour would be better suited for them,” Zinda says.

Without having to worry about paying attorney fees upfront, a business with a contingency fee agreement may be able to litigate a case that they otherwise would not be able to pursue, Zinda says.

“In many cases, the business may actually be losing money because of the wrong committed by another business or individual, and the only way the business can obtain justice is through a contingency fee arrangement,” Zinda says.

Zinda says his firm also offers business clients other alternatives to hourly billing, including:

  • Hybrid agreements: These give the client the option to pay a portion of the legal costs through an agreed-upon contingency fee. The remaining costs and fees are incurred at a reduced hourly rate;
  • Flat fees: These fixed fee agreements are ideal for matters such as incorporating a business, forming an LLC, finalizing real estate purchases or leases, drafting buy/sell agreements and handling other business transactions; and
  • Retainer fees: With these agreements, the client pays a fixed amount of money upfront to secure legal representation, and the charges for any work done on the client’s case are then deducted from the prepaid amount.

“Our law firm believes that you have to be flexible and accommodate your client’s unique situation,” Zinda says. “So, we will work with our clients to arrive at the best agreement and plan for their case.”

About Heselmeyer Zinda, PLLC

The business attorneys at Heselmeyer Zinda, PLLC offer legal services to businesses of all sizes, from small family-owned central Texas businesses to international corporations. The firm, which has offices in Plano, Austin and Round Rock, strives to help guide businesses through legal issues so that they can make forward-looking business decisions grounded on a firm legal foundation.

The firm’s business practice includes business incorporation and start-ups, partnerships, business torts, business litigation, employment issues, drafting contracts, breach of contracts, insurance disputes, franchise agreements, oil and gas and mineral rights, business successions (buy/sell agreements) and asset protection. The firm’s practice areas include business litigation and family. For more information or a free case evaluation, call 1.800.863.5312 or use the firm’s online contact form.

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