Argentina Real Estate News: Argentine Housing Bust Has Government Dialing for Dollars

Argentina Real Estate News

In an area where booming real property markets have federal governments from Chile to Brazil to Colombia warning of prospective property bubbles, Argentina stands out as a breast.

Two years after President Cristina Fernandez de Kirchner clamped down on Argentines’ investment of bucks, the currency of option for real-estate purchases, the apartment sector is grinding to a stop. While costs soared to documents in Manhattan, a high-end strip in Santiago, Rio de Janeiro and Medellin, Colombia, in Buenos Aires they fell a typical 1.2 percent in the second quarter from the previous 3 months, the very first decrease in information that returns to 2005.

“The primary concern in Argentina is that the property market has traditionally been transacted in bucks so when you make it impossible for individuals to source dollars liquidity obtains interfered with,” claimed Bret Rosen, managing supervisor of research at Jamestown Properties LLC in Nyc.

Fernandez’s foreign-currency curbs properly put home acquisitions unreachable for several Argentines due to the fact that they would certainly be required to purchase dollars on the black market for 60 percent above the formal rate. Sales in Buenos Aires dove 34 percent in the first five months, the biggest decrease since the 2001 economic dilemma that finished in the government’s $95 billion connection default, baseding on the Buenos Aires Notary College.
Tax Mercy

Now Fernandez is attempting to revive the market by supplying to forgive taxes owed on undeclared dollars if they’re purchased property. Argentines can trade funds held abroad for central-bank given out certificates that can be utilized in property transactions and retrieved for dollars by the vendor of a residential property.

The plan has only attracted $8.5 million given that it started on July 1 since financiers beware the dollar-starved federal government will attempt to continue the greenbacks, according to Florencia Cecchini, realty agent at Matty Pell & Asociados in Buenos Aires.

“My customers obtain an ulcer whenever I raise the subject,” she stated. “They do not wish to become aware of it because they don’t trust they’ll have the ability to get real bucks.”.

The Argentine government iced up savings account and turned dollar savings in to pesos at 30 percent of the worth after the default.
Lender Dispute.

The nation has actually been secured out of global credit rating markets since then, while decade-long cases in U.S. courts with holdout financial institutions from the country’s 2005 and 2010 financial obligation restructurings requiring to be paid completely are adding to making Argentine securities the riskiest in the world.

Reliant on regional funding, the government has diminished worldwide reserves and published money at a fee of concerning 30 percent a year, fueling the fastest inflation in the Western Hemisphere. Rate rises, tightening up money controls and unforeseeable legislation– consisting of the nationalization of oil company YPF SA in April 2012– triggered financial growth to fall to 2 percent in 2012, the slowest since 2009, as financial investment and production dropped.

Real property is typically paid for upfront as the double-digit rising cost of living fee undermines banks’ capability to supply long-term payday loans. A five-year home mortgage has typical borrowing expenses of 18 percent, baseding on the central bank, compared with the 24 percent inflation rate determined by personal financial experts. Official information, which have actually been tested by the International Monetary Fund, shares customer costs are rising at half the fee.
Sales Tumble.

Just 14.9 percent of all home acquisitions in the district of Buenos Aires utilized home loans in 2012, down from 15.3 percent in 2011, baseding on Buenos Aires real property research company Reporte Inmobiliario. The share hasn’t exceeded 21 percent in the previous 10 years.

Property sales in Buenos Aires toppled 27 percent last year from 2011, the greatest drop in Reporte Inmobiliario data that goes back to 1998, and the just the fourth annual decrease after 2001, 2004 and 2009.

“The market was virtually paralyzed with the currency controls since the wonderful bulk isn’t really going to accept pesos for their property,” German Gomez Picasso, a supervisor at Reporte Inmobiliario, stated in a telephone meeting from Buenos Aires. “They would rather simply hold on to their residential property instead.”.

Some real estate companies are beginning to price their tasks in the regional currency. Designer Alan Faena accepted pesos to complete marketing concerning 25 percent of his house structure in the Buenos Aires area of Puerto Madero, which he helped build in to the most pricey in Argentina’s resources from old abandoned factories by the riverside in the 1990s.
Money Controls.

Money controls make buying Argentina “difficult,” he stated, “You do whatever you can to adapt.”.

Faena, developer of the Faena Hotels and resort and Faena Aleph Residences, has no plans to invest a lot more in Argentina.

As an alternative he is finishing 6 jobs in Miami– a household structure, a resort, a fine arts center, a shopping gallery a playground and a marina– with a $600 million financial investment from his companion, Ukrainian-born American billionaire Len Blavatnik. He stated he’s sold HALF of his condo building set to be finished in September.

Argentines finding to get away from money controls, slow-moving financial growth and rising inflation surpassed Brazilians in 2012 and became the largest Latin American customers of property in the UNITED STATE by investing $2 billion, baseding on a June 24 record by the National Association of Realtors.
Chilean Market.

In Chile, home prices shot up as much as 20 percent in December and were at record highs in April, baseding on the Chilean Construction Chamber. Colombia’s home costs expanded a yearly 5.1 percent in real terms in the third quarter, prompting Yale University’s Robert Shiller to say the boom appears like the arising bubble in U.S. real estate a years back.

The federal government’s plan to switch out dollars with main bank-backed certificates might aid increase the market, according to Juan Martin Olivera, a real property broker and public notary at Escribania Olivera.

“We’re all hanging around to see just what occurs with that initial person who goes to the financial institution,” Olivera stated in a telephone meeting from Buenos Aires. “If all works out, after that it needs to bring some alleviation to the market.”.

Sales in Buenos Aires rose an ordinary 5.6 percent in the 10 years with 2011 as Argentines sought to keep the worth of their cost savings in real property. The peso weakened every year since 2003 and is forecast to move 14 percent versus the buck this year, the most in emerging markets, according to data put together by Bloomberg.

Fernandez’s currency controls and the tax amnesty strategy are readied to fail as they offer temporary relief as opposed to concentrating on slowing rising cost of living and instilling assurance in the federal government’s policies, said Juan Pablo Fuentes, a Moody’s Investors Solution economic expert in West Chester, Pennsylvania.

“They will not be successful in bring in capital by doing this,” he shared in a telephone interview. “No one will certainly reputable a government that continuously violates regulations and does not worth contracts.”.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.

Argentina EB5 VISA USA

Argentina EB5 VISA USA Abogados Buenos Aires Argentina Attorneys at Law in Buenos Aires Argentina

Nuestros abogados de inmigración cuentan con la preparación y experiencia necesaria para responder a todas las preguntas relacionadas con inmigración y resolver problemas con comprensión y dedicación.

La asesoría legal eficaz acerca de la inmigración se basa en la respectiva situación personal y profesional de cada cliente, así como en sus metas a largo plazo para vivir y trabajar (o bien jubilarse) en los Estados Unidos. Existen varias posibilidades para visas y tarjetas de residencia, algunas de las cuales pueden aplicarse a la situación y a las metas del solicitante.

Si usted desea recibir una visa de inversionista, una tarjeta de residencia a través de un Centro Regional EB-5 para inversionistas, una visa basada en el empleo (visa de trabajo) o una tarjeta de residencia permanente al ser transferido(a) por una compañía o en virtud de sus habilidades extraordinarias, o si califica para emigrar en base al matrimonio con un ciudadano de los Estados Unidos o a través de sus lazos familiares, resulta conveniente planear el caso con estrategia y orientación legal eficaz para asegurar que las necesidades (tanto suyas como las de sus dependientes) se reúnan a largo plazo.

Ayudando a empresarios y negocios argentinos

Mediante tratados negociados con Argentina, Estados Unidos ofrece a los ciudadanos argentinos la posibilidad de solicitar visas de comerciantes E-1 y visas de inversionistas E-2 en el marco del tratado.

Kier Joffe proporciona asistencia a muchos tipos de empresas y de empresarios para que obtengan y amplíen sus negocios en Estados Unidos. Ayudamos a nuestros clientes en todas las etapas del proceso de apertura y de expansión de empresas en EE.UU. y tenemos un impresionante historial de éxitos

EE.UU. Visa Argentina – EB5 Visa Argentina

Visas de inversionistas EB5 se aplican con mayor frecuencia para los individuos extranjeros ricos que quieren trasladar a su familia a los EE.UU. o grandes corporaciones extranjeras que deseen establecer una fuerte presencia comercial en los EE.UU.. Los ciudadanos de cualquier país pueden calificar para solicitar una visa de inversionista EB-5.

Inversionistas EB5 aprobada recibirá una tarjeta verde de Estados Unidos y son elegibles para solicitar la ciudadanía estadounidense después de residir permanentemente en los EE.UU. durante 6 meses o más durante 5 años consecutivos.

Existen diferentes tipos de opciones de inversión que pueden calificar para el estado de visa de inversionista EB-5 de la siguiente manera:

Invertirá $ 500.000 en una empresa comercial en un área de empleo que beneficiará a la economía estadounidense y crear al menos 5 a tiempo completo empleos en Estados Unidos;
Invertir $ 1.000.000 en una empresa comercial que beneficiará a la economía estadounidense y crear al menos 10 puestos de trabajo a tiempo completo de Estados Unidos; Oregón
Invertirá $ 500.000 en un centro de inversión EB5 regional en un área de empleo.
La aplicación más simple y común visa de inversionista EB-5 implica una inversión de $ 500.000 en un centro regional de inversiones EB5. El inversionista EB5 no está obligado a ser activos en el negocio si una inversión de $ 500.000 en un centro regional de inversiones EB5. Por lo tanto, el inversionista EB-5 es “simplemente” la compra de una tarjeta de residencia para ellos y sus familiares directos (cónyuge e hijos).

EB5 centros regionales de inversión en general, son las grandes empresas privadas que han fijos proyectos a largo plazo o la intención de vender el negocio de venta privada o la oferta pública dentro de 5 años o menos. Por lo tanto, se requiere que los inversionistas EB5 para mantener su inversión de $ 500.000 en el centro regional de inversiones por un mínimo de 5 años y luego ese dinero se suele volvió con interés o una participación en los beneficios.

El único problema con este tipo de aplicaciones EB5 centro relacionadas con la inversión regional es el solicitante deberá acreditar que los 500.000 dólares procedían de fuentes lícitas. Ejemplos de fuentes legales serían de empleo, un negocio, herencia, donación, préstamo, etc. Sin embargo, tenga en cuenta que la “fuente original” de ese dinero debe ser legal también. Por ejemplo, un traficante de drogas conocido no podía don dinero obtenido por el tráfico de drogas a su hijo y luego tener tal hijo usar ese dinero para invertir en un centro regional de inversiones EB5 como tal sería una fuente de “ilegal” de fondos.

EB5 centros regionales de inversión no garantizan su dinero porque al igual que todas las inversiones, tales inversiones EB5 también vienen con “riesgo”. Sin embargo, todos los centros regionales de inversión EB5 deben pasar por el escrutinio y revisión exhaustiva de su plan de negocios por el USCIS antes de que puedan ser aprobadas como EB5 centro oficial de la inversión regional.

Por lo tanto, la mayoría de los centros regionales de inversión EB5 son una apuesta segura, pero es “siempre” recomendaría que hacer a fondo la debida diligencia antes de comprometer sus fondos a cualquier inversión. Nuestros abogados pueden ayudar con la elección de un centro regional de inversiones EB5 que se ajuste a las necesidades de los clientes, actuando como su representante en contacto con los centros regionales de inversión EB5.

El USICS mantiene una lista de numerosos centros regionales “aprobados” EB5 de inversión que se pueden encontrar haciendo clic aquí.

Tenga en cuenta que hay una cuota anual de sólo 10.000 visas de inversionistas EB5 anuales puestos a disposición de todo el mundo a los extranjeros.

Solicitudes de visado inversionista EB5 normalmente tienen 3-6 meses dependiendo de la integridad de los documentos justificativos y la carga de trabajo de la Embajada de Estados Unidos en el país de residencia.

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We understand how daunting it can be to choose a lawyer in Argentina from another country. Please feel free to contact us with any questions, or to discuss retaining our legal services.
We offer a free initial consultation on your legal matter, with full protection of attorney-client confidentiality, as required by Act number 23,187 section (6) subsection (f).

“Give us a call today, or just fill out the Quick Contact Form on the right, and we will get back to you.”

USA: +(1) 212.300.6377
ARG: +(54) 115.218.3100

Argentina EB5 VISA USA

Argentina EB5 VISA USA

Argentina and the dollar – A fistful of financial instruments

In a speech last November, President Cristina Fernández de Kirchner regretted that she did not possess “a little machine to print dollars”. Over the past few years, Argentina’s international currency reserves have slid considerably. Since the country is virtually blocked from international capital markets, using reserves is its only way to pay off its remaining debt. To protect those reserves, Ms Fernández has effectively blocked the sale of dollars at the official rate since she was reelected in 2011.

The policy has succeeded in reducing capital flight, but expensive energy imports and limp tourism figures have continued to erode the reserves, which fell by $4.7 billion in the first five months of 2013, to their lowest level in six years. Economists do not expect that downward trend to slow. Quantum Finanzas, an economic consultancy, predicts that reserves will fall by another $3.6 billion this year and by $9.7 billion in 2014.

Ms Fernández’s “dollar clamp” has also created a hungry black market for dollars. As they watch inflation ravage their peso savings by 25% a year, Argentines are willing to pay prices far above the official rate to get their hands on greenbacks. At the beginning of May the black market rate, or “blue” dollar as it is known in Argentina, shot to 10.45 pesos to the dollar, nearly twice the official rate.

Ms Fernández is understandably anxious to reduce the size of the black market and find a new source of dollars. In May, following the blue dollar’s spike, she announced a plan that aims to accomplish both those goals.

The scheme, referred to locally as the “laundering law”, invites those with undeclared dollars to invest in property and the energy industry without facing penalties for their previous financial chicanery. The government believes that Argentines have about $160 billion tucked under their mattresses or hidden away in foreign bank accounts. That is about four times the value of Argentina’s foreign currency reserves.

Under the plan, citizens can trade their dollars for two financial instruments: a dollar-denominated bond for investments in Argentina’s energy sector, and a dollar-backed certificate valid for property transactions, known as a CEDIN. Whereas the energy bonds will not launch until July 17th, the CEDINs made their entrance on July 1st.

In exchange for their surrendered dollars, investors will be awarded a certificate of equal nominal value which must be spent on buying or renovating a house, business premises or land. The recipient of the CEDIN may then sell the certificate or cash it in for real dollars at the Central Bank. Alejandro Vanoli, head of the financial services regulator, declared that the certificates will have a “revitalising” effect and “bring an interesting level of liquidity to the economy”.

Economists are less sure. Miguel Kiguel of EconViews, a consultancy, wrote in a note that the certificates will attract $2 billion at most, and that most holders will swap the quasi-currency for real dollars after validating them in the property market. In an interview withReporte Inmobiliario, a property journal, Daniel Muchnick, an economist, wondered“Who, how and in what way is someone, with this repressive government, going to want to take their illegal money and enter into the conventional world? And moreover, who is going to want to invest their assets in a place where foreign currency can enter, but it will not be allowed out?”

The market is equally pessimistic. Some 70% of estate agents doubt that the CEDINs will reinvigorate the property market, which has been damaged by the government’s foreign-exchange controls. Argentines used to buy and sell their houses in dollars; the crackdown has therefore resulted in 16 consecutive months of falling sales. They fell by 35% last year and by 41% in the first three months of this year. Construction also recently suffered its worst decline in 10 years.

Some estate agents are more upbeat. A banner on Tizado Property’s home-page reads: “The CEDIN is real. It is time to invest in bricks.” But Tizado is in the minority. Although the CEDIN may have a modest effect on reversing downward trends in the property market and construction industry, it is unlikely to prove a panacea. By July 3rd, two days after the CEDIN’s debut, the government had yet to sell a single certificate. In Mr Kiguel’s words, the hope that the CEDIN will stop the fall in reserves seems to be “more based on a fantasy kingdom than the reality”.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.

Argentina Probate lawyer

Argentina Probate lawyer

Do You Need an Argentina Probate lawyer?

Deciding whether to hire a Argentina Probate lawyer is an important decision. The first issue is whether you need a Argentina Probate lawyer.

The involvement of a Argentina  lawyer who is experienced in Probate international cases will provide to the client with a full understanding of their rights and responsibilities. An experienced Probate  lawyer can also help to avoid future legal problems that may arise.

Not Every Probate lawyer will be Right for You

You must be sure that your philosophy of how to handle your Probate case matches that of your  lawyer; both of you need to be on the same page. It is important that you ask questions and gather information which reveals the  lawyer’s philosophy for handling cases.

Selecting the right Probate lawyer for your case will help you get through legal problems with the least amount of time, stress and money.

Research Your Argentina Probate  lawyer

Once you have selected a Probate  lawyer to meet with, the next thing you should do is look into that  lawyer’s experience and background. The best way is to search the Internet: Do a Google search on your  lawyer. Look for a legal blog, a website, news stories quoting or featuring the  lawyer, and other online information.

Contacting the Probate  lawyer’s Office and Scheduling Your Initial Consultation

Now that you have selected a Probate  lawyer to interview and have done research on him or her, the next step is to contact the  lawyer’s office and schedule an appointment.

If you are not located in Argentina, you can also schedule a Video/Call Conference using Skype, Google Hangout or Facetime.

You can learn a lot about how your  lawyer will behave if you retain him or her just by how he or she handles the simple but important task of scheduling a meeting with you as a potential new client.

Contact the Probate  lawyer’s office by telephone or e-mail and request an appointment or a Video/Call Conference. When you do this, it is important to tell the  lawyer’s office that you would like to discuss a specific type of Probate case. Take careful note of how quickly your message is answered. Your inquiry should always be answered promptly. If the  lawyer you contacted cannot manage to reply to a potential new client who is bringing him or her a new case and therefore new fees, that fact should tell you something about how he or she will behave once he or she already has your money.

Finally, you should ask about the cost of the initial consultation. Evaluate the response you get to these questions. Was the response clear and unequivocal?

The proven Argentina Probate   lawyer  at the Kier Joffe  lawyer have experience working with foreign clients involved in all kind of international cases in Argentina. Argentina Argentina  lawyer professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Argentina Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Argentina   lawyer in Argentina.

KIER JOFFE –  lawyer at Law

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Buenos Aires Probate Attorney

Best Argentina Probate Attorney – Top Argentina Probate Attorney – Prove Argentina Probate Lawyer

Alternative Fees

Today more than ever, clients require creative, flexible, and predictable approaches to the delivery and pricing of legal services. Kier Joffe works closely with our clients to develop budgeting and pricing models that deliver focused legal services that are both effective and efficient. We are prepared to offer fee structures and billing arrangements that deviate from the standard hourly rate arrangement.

At Kier Joffe, we collaborate with our clients to jointly develop customized alternative fee arrangements for a specific engagement or group of matters. Such arrangements provide greater predictability in budgeting for legal costs, promote risk sharing, and better align the interests of the client and our firm.

If implemented successfully, alternative fee arrangements provide substantial value and are mutually beneficial for the firm and the client. To ensure alternative fee arrangements are successful, at the initiation of a new engagement, we will invest significant time and effort to better understand the client’s ultimate objectives and preferred approach and legal strategy, as well as agree on the scope and parameters of the project. Because details of the matter are disclosed and discussed at the outset, the resulting fee arrangements typically provide the optimal balance between risk and reward for both parties.

Kier Joffe prides itself on not only its enthusiasm for alternative fee arrangements, but also its ingenuity and creativity in developing alternative fee arrangements that suit the particular needs of a specific client or matter.

Below are some examples of the alternative fee plans our clients have found attractive.

Alternative Hourly Rates 

Blended Hourly Rates – For some matters, Kier Joffe may agree to bill the same rate for all lawyers who work on a client’s matters, regardless of each lawyer’s level or individual billing rate. Blended rates are determined on the basis of work we expect to be provided for a matter and the billing rates of those lawyers we anticipate will work on the matter.

Volume Discounts – In situations where a client prefers traditional hourly rates, we may consider providing hourly rate discounts on a sliding scale in return for that client guaranteeing a set level or volume of legal work.

Fixed or Flat Fees 

Straight Fixed or Flat Fees – Kier Joffe is willing to provide some services for a set fee. This fee could cover a particular matter (e.g., a fixed fee for all work provided on an internal investigation) or a particular service (e.g., a flat fee for consulting services provided on a monthly basis). Fixed fees typically are set for individual matters or for an entire portfolio of matters, and may cover the entire life of a matter or be limited to a specific period of time or a particular task.

Fixed Fee or Pre-Agreed Upon Budget with Collar – Some fixed fee arrangements (and matters with pre-agreed upon budgets) will warrant a “collaring” arrangement. This fee arrangement anticipates engagements in which the amount of effort needed to fulfill our obligation as responsible legal counsel is greater or less than what both we and our client initially thought the effort would require.

Under such a collaring arrangement, Kier Joffe and the client would agree that if the hourly value of our firm’s lawyer time expended on a matter falls considerably outside the fixed fee (or pre-agreed upon budget), we will share the fee upsides and downsides with each other.

Monthly Access and Advice Retainers – Although this is a variation of the straight fixed fee approach described above, an advice and access retainer has benefits that warrant further explanation. This approach makes sense in situations where a client wishes to be proactive in seeking legal advice to avoid legal exposure, but does not want to pay for expensive legal research every time a potential legal issue arises. This arrangement offers clients ready access to relatively inexpensive legal advice and offers Kier Joffe the chance to add value to the client. We are able to help distinguish early on between those situations that are easily dealt with and others that, unaddressed, might expose the company to significant liability.

Phase-Based Fees – The firm will estimate a specific fee for each phase of a matter based on the work anticipated for each phase. In litigation, for example, this arrangement might result in a separate fee for each of the following phases:

-Motion to dismiss
-Dispositive motions
-Trial preparation

In transactional matters, phases of work might include due diligence, drafting of specific agreements, negotiating the terms and amount of the purchase/sale price, closing activities, etc.

This approach could be implemented in a variety of ways. For example, the arrangement may be based on fixed fees, where Kier Joffe charges a fixed fee for each matter phase. Another approach that might be taken would require the client to pay an estimated (budgeted) fee for each phase with a rationalization against actual billings at agreed-upon times, e.g., quarterly, annually, or when the matter is concluded.

Fee Caps – For matters in which the scope is understood and well defined beforehand, the firm may agree to cap its fees. Fee caps are determined based upon anticipated fees for the scope of work, and they can be set for the entirety of the matter or for each phase.

Risk Sharing Arrangements 

Fee Holdbacks – In certain situations, Kier Joffe can hold back an agreed-upon percentage from its monthly billings. In return, we will have the opportunity to earn and be paid the full holdback amount at the client’s discretion. Whether we earn back all or some of the holdback amount will be based on the client’s assessment of our performance against certain predetermined criteria, e.g., work quality, results, creativity, efficiency, cost-consciousness, collaboration with other outside counsel, and effective utilization of the client’s own resources. In these situations, the criteria are established up front. The client’s holdback determinations could be made annually or when the matter concludes. A fee holdback arrangement could be applied to a litigation or transactional matter.

Success Fees – Under this arrangement, Kier Joffe would be eligible for a success fee or premium in addition to its prior billings, in the form of a performance bonus at the client’s discretion. A success fee can be a set fee, a graduated fee according to a mutually developed schedule, or a percentage of our billings. As with a holdback, whether we earn a success fee will be based upon the client’s evaluation of our performance against predetermined criteria.

Broken Deal Discounts – The firm would consider a discount off of its fees in the event that a project did not proceed beyond a certain stage of the transaction. For example, there would be an agreed upon substantial discount if the client chose not to proceed after completing its due diligence, followed by separate discounts should the client elect to proceed with documentation after completing due diligence, but then failed to reach a financial closing of the project.

Contingency Fees 

Traditional Contingency – Under a traditional or full contingency arrangement, Kier Joffe will defer its fees entirely in exchange for receiving an agreed upon portion of the client’s ultimate recovery. Typically, the client pays the expenses of the litigation.

Partial Contingency – In a partial contingency arrangement, the firm handles a matter at a reduced hourly rate and shares in a favorable recovery or resolution at a smaller percentage. Partial contingency arrangements reduce legal expenses during the course of a matter, and provide a mechanism for the firm to share litigation risk with the client. Defense cases can also be structured as partial contingency fees with success contingent on specific predetermined results or milestones being achieved.

For transactional matters, the firm may conduct the work at reduced hourly rates in exchange for a percentage of the value the client receives upon liquidation or sale.

Reverse Contingency – A reverse contingency fee is based on how much the firm saves the client as a defendant. If we are able to resolve a matter for less than the exposure attributed to it by the client (or reduce the client’s reasonable exposure through dispositive motions), then the fee would include an agreed-upon percentage of that savings to the client.

With both traditional and reverse contingency fees, we often use graduated rates based upon the phase of the matter. For example, the closer a matter progresses to trial, the greater the percentage we would be paid for a favorable result.

Hybrid Fee Arrangements 

Hybrid Fee Arrangements by Matter Phase – In certain situations, the billing arrangement that makes the greatest sense is a combination of several arrangements described above. For example, Kier Joffe could estimate fixed fees for some matter phases, holdbacks on hourly rates for other phases, and success fees for other phases.

“Frequent-Flyer” Credits toward New Legal Services – Kier Joffe may agree to provide a significant reduction in fees for one matter in exchange for the client’s commitment to assign other matters to us in different areas of the law where we have not yet served the client. This could take the form of a discount on the instant matter, a credit against future billings for the new area, or some combination.