Engaging and Paying Contingency Counsel in Bankruptcy

As the retention of contingency counsel proliferates, stakeholders and their professionals need guidance and creativity in considering the financial arrangements that are negotiated. This panel focuses on ethics and professionalism issues that arise in these retentions, retaining counsel under § 328, how to negotiate and/or determine what compensation is appropriate (20 percent vs. 40 percent), compensation based on case status (e.g., settlement after initial motion practice vs. SJ), hybrid compensation, financing litigation (estate vs. contingency counsel vs. third party, Gawker), who should control settlement as contingency counsel’s stake grows, and when payment of contingency counsel can be contested.