Reading Comprehension

PT139 · S2 · P4 · Q26 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.

26.

According to the passage, the LRCWA's report recommended that contingency-fee agreements

  1. be used only when it

    Out of Support Window: diligence

    The author brings up concerns of lawyer's diligence in the final paragraph, but that's not something we have attached to LRCWA's recommendations. LRCWA was only worried about lawyers claiming a disproportionate share of the rewards and worried about clients choosing to use a contingency fee arrangement when they could afford to otherwise.

    3% picked this

  2. be used only in cases

    Out of Scope: enormous damages

    There's nothing in the 2nd paragraph that sounds like the LRCWA was worried about enormous damages. They were just worried about lawyer's taking too-big a share of the damages, whatever size those are.

    2% picked this

  3. be used if the lawyer

    Opposite

    This answer would be correct if it said that the LRCWA recommends that contingency fee arrangements not be used if the lawyer hasn't ascertained the client otherwise couldn't afford to pay legal fees in a losing case.

    18% picked this

  4. Correct

    not be used in cases

    Why this is right

    This is supported by the last sentence of the 2nd paragraph. Contingency-fee arrangements should be permitted only in cases where each of these conditions is satisfied: first, the contingency-fee arrangement is used only as a last resort when all means of avoiding such an arrangement have been exhausted .... In other words, if any other type of arrangement is possible (i.e. practicable), then contingency-fee arrangements are not to be used.

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

    72% picked this

  5. not be used except in

    Out of Scope

    Out of Scope: reasonable sure of win This wasn't one of the three things found in the 2nd paragraph. The three requirements were 1. last resort 2. lawyer has verified client couldn't pay if client loses case 3. uplift fee There was nothing about verifying that the potential awards are big enough to cover the lawyer's fees.

    5% 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