Reading ComprehensionDifficulty: Hard

PT139 S2 P4 Q27 Explanation

Contingency Fees in Western Australia

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TopicsWeakenLaw

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Passage

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. Contingency-fee agreements call for payment only if the lawyer’s risk of financial loss, such charges generally exceed regular fees.

Although there are various types of contingency-fee arrangements, the LRCWA has recommended that only one type be introduced: “uplift” fee arrangements, which in the case of a successful outcome require the client to pay the lawyer’s normal fee plus an agreed-upon additional percentage of that fee. This restriction is intended to prevent is financially unable to pay the fee in the event that sufficient damages are not awarded.

Unfortunately, under this recommendation, lawyers wishing to enter into an uplift fee arrangement would be forced to investigate not only the legal issues affecting any proposed litigation, but also the financial circumstances of the potential client and the probable cost of the litigation. This process would likely be onerous for a number may change as the case unfolds, such as strategies adopted by the opposing side.

In addition to being burdensome for lawyers, the proposal to make contingency-fee agreements available only to the least well-off clients would be unfair to other clients. This restriction would unjustly limit freedom of contract and would, in effect, make certain types of litigation inaccessible to middle-income people or even wealthy people who it is reasonable to assume that such arrangements increase lawyers’ diligence and commitment to their cases.

What this question is testing

Weaken

Your task

Find the choice that makes the argument's conclusion less likely to be true.

Common trap

Answers that look negative but attack a claim the argument never relied on.

Winning move

Find the assumption the argument depends on, then pick the choice that undermines it.

Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.

The question
27.

Which one of the following, if true, most seriously undermines the author’s criticism of the LRCWA’s recommendations

Answer choices

  1. No Impact15% picked this

    The proportion of lawsuits filed by the least well-off litigants tends to be higher in areas where uplift fee arrangements have been widely used

    The author would expect this ... if you offer poorer people the option of the contingency (uplift) arrangement, then they'll be able to pursue litigation. In areas where there aren't uplift arrangements (and thus you have to pay the lawyer up front), poorer people won't be able to afford litigation as much. What would really get at one of the author's points is knowing whether middle-class and "barely rich" people are likely to use uplift arrangements if they're allowed to. The author is arguing that this is an option they would like to take advantage of, if the LRCWA would let them.

  2. Correct53% picked this

    Before the LRCWA's recommendations, lawyers in Western Australia generally made a careful evaluation of prospective clients' financial circumstances before accepting cases that

    Why this is right

    One of the author's criticisms was that lawyers would now face the burdensome task of investigating the financial situation of their clients. This answer is saying, "C'mon, that's not a new problem with uplift arrangements --- most lawyers were already carefully investigating their clients' financials even before the uplift agreement came on the scene."

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

  3. No Impact6% picked this

    There is strong opposition in Western Australia to any legal reform perceived as favoring lawyers, so it is highly unlikely that the LRCWA's recommendations

    The author is evaluating whether the uplift fee is good or not, not predicting whether or not it will be implemented. So an answer about implementation can't weaken / strengthen the author evaluation of whether or not the uplift fee should be implemented.

  4. No Impact22% picked this

    The total fees charged by lawyers who successfully litigate cases under uplift fee arrangements are, on average, only marginally higher than the total fees

    The author's criticisms didn't have anything to do with comparing the total fees charged by uplift lawyers to the fees charged by lawyers without contingency agreements. Perhaps, one could try to construe this as weakening the author's idea that "with contingency arrangements, lawyers work harder / are more diligent". One might think, "if they're really working harder, author, then how come their not billing way more hours; they're only marginally more expensive?" The author never committed to the idea that the lawyers would work way more hours or end up billing more. The author was just saying that the lawyer would care more about winning the case, since their own payment was riding on success.

  5. No Impact5% picked this

    In most jurisdictions in which contingency-fee agreements are allowed, those of the uplift variety are used much less often than are

    Similar to (C), this is just describing the prevalence of certain arrangements (choice C was describing whether Western Australia would become another area where these arrangements would be implemented). The author is evaluating the LRCWA's endorsed type of contingency fee and all the associated rules that go with it. If an answer isn't addressing one of her criticisms or speaking specifically to the LRCWA's plan, then it isn't changing the conversation at all. The fact that something is done in many places is not evidence that it should be done or that it's a good thing. Also, since this answer is saying that the "uplift variety" is much less often used than other contingency fee agreements, if anything it would support the author's general feelings that the LRCWA shouldn't be insisting on this uplift agreement. However, the author's critiques have nothing to do with the fixed percentage of the uplift, but rather all the extra requirements the LRCWA says about who does / doesn't get to partake of this arrangement.

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