Tozzi Law, LLC (“TL”) offers individuals, businesses and law firms a choice of compensation structures for the collection of commercial indebtedness anywhere in Georgia, based upon the risk of collection loss, as follows:
Contingent Fee* Basis: TL assumes the risk of collection loss.
Time & Billing Basis: The creditor client assumes the risk of collection loss.
50/50 (Hybrid) Basis: The risk of collection loss is split between the creditor client and TL.
An engagement agreement confirming the terms of the representation, including the compensation election, will be entered into between the creditor client and TL prior to any collection effort by TL. In order to prevent any potential misunderstanding, there is no opportunity to subsequently modify the compensation election. Regardless of the compensation structure selected, out-of-pocket costs, such as court filing fees, court reporter fees, expert and other witness fees, are the responsibility of the creditor client.
| Contingency* | Time & Billing | Hybrid (50/50) | |
|---|---|---|---|
| Description | Fees are primarily dependent upon the success of collection | Charges made by the attorney for services representing the Client at hourly rates. | TL bills 50% of usual hourly rates for time incurred and earns 50% of usual contingent fees upon successful conclusion of collection effort by TL. |
| Risk | TL assumes the risk of collection loss. | Client assumes the risk of collection loss. | Client and TL split the risk of collection loss. |
| Summary | Client pays the fees specified in our Engagement Agreement from the gross recovery made upon successful conclusion of collection efforts by TL. | Client pays for all time incurred in the collection process, regardless of success, but there are no contingent fees assessed on any recovery made. | Client pays only half the hourly rates for all time incurred, but TL also assesses half of usual contingency fees upon successful conclusion of collection effort by TL. |
The following chart details the primary differences
*Please note the following: “Contingent attorneys’ fees refer only to those fees charged by attorneys for their legal services. Such fees are not permitted in all types of cases. Court costs and other additional expenses of legal action usually must be paid by the client.