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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
Satisfied Customers: 12783
Experience:  Significant experience in all areas of employment law.
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I have a lawyer representing me in a Discrimination, Harassment

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I have a lawyer representing me in a Discrimination, Harassment case against my employer. He has agreed to change our agreement to part-hourly/part contingency. Our previous agreement was $295.00 per hour attorney's fees and now the hourly rate will be $140.00 but additionally his payment at time of settlement or judgement will be 33 1/3%. My question is: Is this a fair agreement to me and also will my attorney be responsible for taxes due on his percentage or will I be responsible for all taxes due on the full amount awarded to me? Are there any other issues to consider before I agree to this new arrangement with my attorney? Please let me know.

Good morning and thank you for entrusting me to answer your question. I will do everything I can to assist you.

That is a very generous agreement for your attorney. If you truly have a case worth pursuing, a standard 1/3 contingency should be sufficient. To pay an hourly on top of that, even at $140, may ultimately result in a legal fee that exceeds half or more of your recovery.

As far as taxes are concerned, your attorney will be responsible for taxes on their fee unless there is a specific agreement to the contrary, but that would be extremely bizarre and I've never seen it.

As far as your fee agreement is concerned, it strongly favors the attorney and it may be wise to either negotiate down (or eliminate) the hourly rate or negotiate down the contingency to compensate.

Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you. Very best wishes to you and thank you so much for coming to Just Answer.
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