Many attorneys take on Contingency cases and some do them solely. In order to set up a Contingency Matter, follow these steps:
To Create the contingency Matter:
- Look for the Billing Method drop down menu in the Add Matter screen. You will have the option to mark the Matter to be billed on Contingency.
- Once Contingency is selected as the Billing Method, the Judgement field opens. Here is where you will calculate your fee when the award is handed down by the court. Since that figure will not be known until later, it is okay to save the Matter in order to begin work and track expenses in the case.
- After saving your new Contingency Matter, it will be listed among all your active Matters. The presence of the letter "C" along the left side of the Matter screen will be your indicator that this is a Contingency Matter.
CREATING TIME ENTRIES FOR CONTINGENCY MATTERS
Even though the client would not be billed in such a way, it is not uncommon for an attorney to create time entries on their Contingency Matters. The advantage of doing so is to know how much time was put into a Contingency Matter and weigh the final fee against the time spent working for it. Your CosmoLex software allows you this ability. Simply create a Timecard as you would for an Hourly-billed case. When doing so, the Timecard will note that the entry will be UnBillable because it is a Contingency Matter.
- When the Timecard is saved, it will be listed among the other Time and Expense entries for the Matter as Unbillable. Additionally, the Unbilled amount for the Matter does not change.
GENERATING A BILL FOR FEES IN A CONTINGENCY MATTER
When the case concludes and the award is handed down by the court, use the Edit function on the Matter screen to enter the final figures for your Contingency Matter. In the below example. the court awarded the petitioner $50,000 and your fee is 15% of the award. When you enter those figures into the two spaces next to Judgement, the software will calculate your Final Price which you would then invoice the client.
- Re-save your Matter and the Final Price will be represented in the Unbilled balance for the Matter.
From there, you can generate an Invoice for the Matter. For assistance on how to do this, click HERE.
ENTERING A HARD-COST EXPENSE FOR A CONTINGENCY MATTER
As with any other type of case, an attorney will encounter having to pay for reimbursable expenses by creating a Hard Cost Expense. For assistance on how to do this, click HERE.