Reading Comprehension

PT139 · S2 · P4 · Q22 Contingency Fees in Western Australia

A free, expert breakdown of this official LSAT Reading Comprehension question.

  • Save & drill this skill build targeted practice sets from questions like this one

  • Video walkthroughs watch every question solved step by step

  • 81 official LSATs as questions, timed sections & full-length tests

In October 1999, the Law Reform Commission of Western Australia (LRCWA) issued its report, “Review of the Civil and Criminal Justice System.” Buried within its 400 pages are several important recommendations for introducing contingency fees for lawyers’ services into the state of Western Australia.

Topic

The Western Australia Law Reform Commission's recommendations for contingency-fee arrangements in legal cases and their implications.

Framework

Challenge Position

Main Point

The Law Reform Commission's proposal to allow contingency-fee arrangements only as a last resort and only for financially needy clients is overly restrictive, burdensome for lawyers, and unfair to other clients; there are good reasons to make such arrangements available more broadly. The Most Valuable Sentence: The final paragraph clearly summarizes the main critique, especially where it says,

P1: Background on the Recommendation

The passage starts by letting us know that Western Australia's Law Reform Commission has recommended introducing contingency fees—where lawyers only get paid if they win—in Western Australia, with the rationale that these fees are higher due to the lawyer's risk.

P2: Details and Restrictions of Proposed Arrangement

Here, the passage explains that the Commission is only recommending a specific kind of contingency fee (the "uplift" fee, which is a standard fee plus a bonus if the case is won), and only when other options are exhausted and the client can't otherwise afford to pay. These measures are supposed to prevent lawyers from exploiting the system and to keep compensation fair.

P3: Problems and Burdens for Lawyers

The author jumps in with criticism, pointing out that requiring lawyers to check the client’s finances before entering this type of arrangement makes things complicated and burdensome, because predicting all future costs in litigation is difficult.

22.

The passage states which one of the following?

  1. Correct

    Contingency-fee agreements serve the purpose

    Why this is right

    In the final paragraph, the author says midway: The primary reasons for entering into contingency-fee agreements hold for all clients. First, they X. Second, they [contingency-fee agreements] shift the risk of not recovering the costs of a legal action from the client to the lawyer. If this is one of the two "primary reasons" for entering into contingency-fee agreements, then we can say contingency-fee agreements "serve this purpose".

    Skill tested: Locate Detail · how this choice captures the passage's function is the move to repeat next time.

    58% picked this

  2. Contingency-fee agreements of the kind

    Unstated

    This is supported, since the 2nd paragraph says that the LRCWA restricts people to the agreed-upon uplift, in the hopes of preventing lawyers from gaining disproportionately from awards of damages. This would be a great answer on a Most Supported question stem like, "Which of the following would the author be most likely to agree with". But this was a Must Be True question stem that asked for what the passage actually said.

    22% picked this

  3. At least some of the

    Out of Scope: likely implemented

    The passage never discusses the likelihood of any of the LRCWA's recommendations being implemented, only the potential causal effects were they to be implemented.

    2% picked this

  4. Allowing contingency-fee agreements of the

    Unstated: not affect diligence

    "Diligence and commitment" are only stated in the final sentence, which is about all contingency-fee arrangements. The sort of contingency-fee arrangement that LRCWA's report recommends is the uplift style in which the lawyer wins an agreed upon percentage in addition to their normal fee, if they win the case. That is discussed in the beginning of the 2nd passage. The author never draws a straight line or states her causal opinion of how that specific type of contingency-fee arrangement does or doesn't affect diligence and commitment.

    2% picked this

  5. Usually contingency-fee agreements involve an

    Too Strong: usually

    The beginning of the 2nd paragraph merely says that the LRCWA is recommending this type of contingency-fee arrangement (the agree-upon uplift). It never says that more than 50% of contingency-fee agreements are currently of that style.

    14% picked this

Continue the review in LSAT Lab

Save this question, watch the video walkthrough, and drill similar questions in your LSAT Lab account.

LSAT Lab

Turn this review into a targeted study plan.

Save this question, drill more like it, watch the video walkthrough, and track your progress in your LSAT Lab account.

Start practicing free