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Alternative Fee Arrangements in Complex Litigation
Alternative fee arrangements (AFAs) are about value, a benefit legal departments are increasingly pressured to bring to their companies. When hiring an outside lawyer, clients are not looking for “hours,” and they certainly are not looking for tenths of hours. They seek value.
So how does a fee arrangement with outside counsel best ensure that value? That is easy in certain scenarios, such as in a “plaintiff's case” where a company is seeking to recover a sum of money in damages. In these cases, value can easily be captured through a straight contingency arrangement — if the case is successful, and damages are recovered, the outside lawyer receives a percentage of the recovery.
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