Before our attorney begins work, we send them $10,000.
Example 1: The Collection is $200,000, and Expenses are $2,000.
- Litigation Counsel earns $40,000 = 20% x $200,000.
- Expenses are deducted from the remaining collection, $160,000 - $2,000 = $158,000.
- Edison and Plaintiff each earn $79,000 = $158,000 x 50%.
- Edison also receives it’s $10,000 sent back from Litigation Counsel.
Example 2: The Collection is $5,000, and Expenses are $2,000.
- Litigation Counsel earns $10,000 because 20% of $5,000 is less than $10,000.
- The $5,000 Collection and $5,000 of the $10,000 Edison sent goes to Litigation Counsel.
- Edison gets $5,000 back from the $10,000 sent and Edison pays $2,000 of Expenses.
- Edison has a net loss of $7,000.
- Plaintiff pays zero out of pocket.
