Tip #60 - The Referral Attorney Fee is Automatically Calculatedon the Settlement Screen

You most likely will have a referral agreement with the firm or attorney that refers cases to you. Some firms have a “standard” agreement (e.g., the referring firm or attorney will get a standard 10% of the attorney’s fees) or you may have a fee arrangement that is done on a case-by-case basis. In either circumstance you will enter the referral fee agreement on the Retainer/Referral Screen.

The information entered on the Referring Attorney Screen (Referral Fee, Disbursement) will be saved to the Negotiation/Settlement screen automatically and factored in the calculation for the settlement when the net to client is calculated.

In the example show on the screen shots above, we have a Referral Fee arrangement of 10% (and prior Disbursements of $2,563.89). In the screen shot below you will see the Referral Fee amount transferred to the Settlement Screen and automatically factored into the calculations showing the net to client.

In this example, the case settled for $70,000.00. Our firm fee was based on a 1/3 Retainer Agreement so total attorney fees charged to the client is $23,333.33 (1/3 of $70,000). We also have a Referral Fee arrangement of 10%, so the Referral Fee to the Referring Attorney is $2,333.34  (10% of the $23,333.33). Note also that the ‘net’ Firm Fee is $20,999.99, i.e., the difference between the total attorney fees of $23,333.33 and the $2,333.34 Referral Attorney Fee.

Please bear in mind that the Referring Attorney Fee is  not handled as a lien in the calculations. If your firm dictates that such a fee be documented as a lien and entered on the Lien Tracking screen, you would not enter any Referral Fee on the Referring Attorney information Screen, else the amount would be duplicated in the calculations on the Settlement Screen, once as a Referral Fee and once as a Lien.