Statutory Mandates for Contingent Fees Are Applicable to Hybrid Fee Arrangements

An attorney’s hourly fee agreement that incorporates financial incentives tied to successful results is voidable if it does not comply with California’s statutory requirements for contingent fee contracts, the California Court of Appeal, Second District, ruled Nov. 22 (Arnall v. Superior Court (Liker)).

Writing for the court, Justice Nora M. Manella said that the statutory limitations put on contingent fee arrangements by the legislature may not be avoided simply by charging a hybrid contingent/hourly rate. To hold otherwise would allow lawyers to circumvent the design of the statute simply by adding an hourly component to a contingent fee ...