The contingent fee: disciplinary rule, ethical consideration, or free competition?

The contingent fee deserves a place in American legal practice because it provides an efficient means of financing legal services. Moreover, its general acceptance by the American legal community probably assures its continued use. Nevertheless, its use creates the possibility of abuse by the legal profession. To guard against possible abuse a lawyer should: (1) Fully and specifically disclose to the client all relevant considerations, including the existence of potential conflicts of interests and the composition of the particular fee, before entering into any contingent free contract. (2) Always reduce a contingent fee contract to writing and submit a copy to the client; (3) Adjust the fee to reflect the risks of each case rather than apply the same percentage to all cases; (4) Resolve all conflicts in the client's favor; and, (5) Make necessary adjustments to prevent unexpected windfall profits. In addition, all lawyers should seek new methods to make legal services affordable by all. If followed, these proposed guidelines should help to overcome some of the abuse incident to the use of contingent fees. Preventing that abuse will assure that the contingent fee can continue to be beneficial in many respects to both lawyers and consumers of legal services.