Susman-godfrey-fee-final-2019.pdf
4 pages - 385.3 KB
A client was bullish on the merits of its patent infringement claims, and, although it preferred paying its lawyers for results rather than for time spent, it ...
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1of4The average cost of litigating a complex commercial case exceeds several million dollars.In 2011, the average cost of litigating any significant patent caseexceeded $6 milliondollars.1These substantial investments are often difficult to justify because the litigationprocess can be very unpredictable. Rather than making a large investment in uncertain litigation, clients are usually happier pay-ing lawyers using result based fee arrangements that limit their financial exposure. Clientsprefer result basedarrangements compared to paying lawyers by the hour because, whenpaying by the hour:■ Attorneys’ fees are unpredictable andcan skyrocket for reasons not within theclient’s direct control;■ The client makes a huge investment(legal fees) with an uncertain return(over 50% of patent cases are reversedon appeal); and■ There is an inherent conflict betweenthe client wanting to minimize costs and the lawyers needing to performlabor-intensive tasks.As the following case studies illustrate, t...
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