Emily retains Michael, an attorney, on a contingency-fee basis to seek $1 million in damages in a personal-injury suit against Prescription Pharmaceuticals Inc. Emily wins. She must pay
A) court costs and other expenses, but not Michael's fee.
B) Michael's fee, court costs, and other expenses.
C) Michael's fee only.
D) neither Michael's fee nor court costs and other expenses.

Question

Emily retains Michael, an attorney, on a contingency-fee basis to seek $1 million in damages in a personal-injury suit against Prescription Pharmaceuticals Inc. Emily wins. She must pay​
A) ​court costs and other expenses, but not Michael's fee.
B) ​Michael's fee, court costs, and other expenses.
C) ​Michael's fee only.
D) ​neither Michael's fee nor court costs and other expenses.

Quizplus · Accepted Answer

When an attorney is retained on a contingency-fee basis, they receive a percentage of the damages awarded to the plaintiff as their fee. In this case, Michael will receive a percentage of the $1 million in damages that Emily wins. However, Emily is still responsible for paying any court costs and other expenses related to the lawsuit, in addition to Michael's fee. Therefore, the best choice is B.

Emily Retains Michael, an Attorney, on a Contingency-Fee Basis to Seek