Attorney's Fees in Condemnation Cases - Attorney Philip Hundl - Richmond TX - YouTube

Channel: Wadler Perches Hundl & Kerlick

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- Hello, my name's Philip Hundl.
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I'm an attorney with Wadler, Perches, Hundl & Kerlick.
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We're a law firm based in Wharton County,
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with offices is Fort Bend County, as well.
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Primarily, I handle condemnation cases for landowners
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throughout the Gulf Coast area of Texas.
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I'd like to talk today about fee arrangements
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in condemnation cases and, specifically, condemnation cases
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between landowner condemnation representation by lawyers.
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So, there's been some questions about what's the typical
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fee arrangement for a landowner
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that's faced with a condemnation case, be it a pipeline,
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be it a road expansion, utility easement.
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What options are available for that landowner?
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I think sometimes landowners believe that,
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well, to hire a lawyer, it's going to cost a lot of money,
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it's going to be billed on an hourly basis,
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and that's going to eat into whatever possible compensation
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or compensation that they will get from, in this case,
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let's say a pipeline company.
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So, landowners tend to sometimes be hesitant
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to get a lawyer involved, especially get a lawyer
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involved early on, because they're afraid
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they're going to receive less from the pipeline company
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in the end, because they have to pay for their lawyer.
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I understand that concern, and so, let's talk about
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the typical fee arrangements in a condemnation case.
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Typically, condemnation attorneys
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handling landowner condemnation matters
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will handle those matters on a contingency fee basis.
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What does that mean?
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Let's just say, for example, a landowner receives
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an offer from a pipeline company of $50,000,
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and by hiring an attorney on a contingency fee basis,
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the landowner in the end receives $80,000,
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through the negotiation of the attorney,
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possibly negotiation and reaching a settlement,
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or negotiation representing the landowner
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at a Special Commissioners' Hearing,
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or all the way through trial, and receives more.
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Let's say, for example, receives at total of $80,000 more.
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Under a contingency fee arrangement,
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the attorney would subtract off the $50,000
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that the landowner was initially offered.
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That's the landowner's.
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It's not subject to a contingency fee.
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And then, the part that the attorney would receive
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would be out of the additional amount that the attorney
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was able to get for the landowner.
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So let's just use an example, contingency fee percentages
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can range from one-third up to 40, 45%,
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depending on when the attorney is hired
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by the landowner and gets involved.
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But under our scenario, let's just say
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it was a one-third contingency fee arrangement.
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So, initial offer, $50,000.
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Final agreed amount to be paid, $80,000.
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The landowner would receive $70,000,
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so $50,000 plus $20,000.
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The attorney would receive $10,000.
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So what's at play for the contingency fee
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is the additional $30,000 that the attorney was able to get,
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in addition to the initial offer
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that was offered by the pipeline company.
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So, under that contingency fee arrangement,
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landowner receives $70,000, so $20,000 more than what they
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were offered by the pipeline company,
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and the attorney receives a contingency fee of $10,000.
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So, under that arrangement, the landowner did not lose
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any of his initial offer from the pipeline company.
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There's also some scenarios, and I've seen this,
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and I've been hired under this fee arrangement,
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is an hourly fee arrangement, when the landowner
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believes that it's in his best interest economically
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to just hire the attorney on an hourly basis.
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And hourly rates of attorneys will vary,
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just like contingency fee percentages.
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But also condemnation attorneys
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can be hired on an hourly bases.
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But some condemnation attorneys
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may not accept that fee arrangement.
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They may want to stick with a contingency fee,
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but once again, I've seen both arrangements.
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I've worked under both arrangements,
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as well, with landowners.
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So hopefully that's helpful in clarifying
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contingency fee agreements or arrangements
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for landowners in condemnation cases.
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Good luck.