Mr. Johnson provides legal services on an hourly basis and under a variety of alternative fee arrangements.
An alternative fee arrangement (“AFA”), in the practice of law occurs when the attorney’s compensation is based on a method other than billable hours. Clients often look for a combination of cost savings, cost certainty, and alignment of law firm interests with their interests.
Flat fee, where the firm handles a single case (or part of a case) for an agreed upon, flat amount.
Contingency fee arrangements, where the firm obtains its fee as a percentage of the money won at trial or in settlement. This arrangement is tied to performance and the client pays no fees unless the legal action is successful.
Policyholder (insured) coverage contingency, the coverage attorney’s fee is based on a negotiated fee percentage applied to the amount won at trial or in settlement. Coverage counsel enters into an agreement with the claimant’s existing counsel to share a part of the fee. If the claimant does not prevail, coverage counsel receives nothing.
Blended contingency arrangement, incorporates a below-average hourly fee (or flat fee) and a below-average contingency fee.