Who Pays for a Qui Tam Law Firm?

When working with a qui tam law firm, one of the first questions you’re probably going to ask is, “How much will this case cost me?” It’s a reasonable question. You want to know how much you’ll be paying out of pocket, and what the impacts might be for you and your family.

While we can’t speak for every law firm, there is a general pattern most reputable firms follow. Keep reading to learn about the costs you can expect to incur at various stages throughout the process.

Initial Fees: Filing a Qui Tam or False Claims Lawsuit

To initiate your lawsuit, you will be required to cover a few small expenses. Generally speaking, there will be a court filing fee, and some administrative costs you will have to pay. However, in the event you win your case, you will be reimbursed for these expenses out of your settlement. You also have the right to request it directly as part of the settlement; something your attorney should be happy to provide.

Continuing the Qui Tam Lawsuit

As the lawsuit and settlement run their course, you’re unlikely to have to pay your attorney anything. This is because most attorneys operate on a contingency fee arrangement. This means they agree to a share of the recovered monies, and they take their expenses from the resulting settlement amount.

There is also a strong possibility that the defendant will be required to cover all statutory fees. Again, this is only in cases where you receive a favorable settlement, but you are entitled to ask for it under the False Claims statutes.

What Happens If You Lose the False Claims Case?

Honestly, it depends. Most contingent fee clauses stipulate fees will only become due and payable upon successful conclusion of the defined scope of legal work. While this usually means a favorable outcome (i.e. the court awards you money, or you reach a favorable settlement outside the courtroom), you should pay close attention to the wording of the contract.

There is the possibility that your lawyer will define a successful conclusion as ANY outcome. This means you may be on the hook for the fees you’ve incurred to this point, even if you don’t win anything in the way of monetary compensation.

What Does All This Mean In the End?

Bottom line? You can file and take your case quite a considerable distance with very little money out of pocket. Just be sure to pay close attention to the documents you are signing, and what the limitations are with regards to a payout of attorney fees at the end of an unsuccessful case.