PFT:A strong hint that a deal could be coming

[cowboyjoe]

Posted by Mike Florio on July 5, 2011, 5:35 PM EDT
http://profootballtalk.nbcsports.com/2011/07/05/a-strong-hint-that-a-deal-could-be-coming/
Reuters
As the media does its best to read the tea leaves regarding when or if a new CBA is coming, here’s one that arguably has more meaning than any others.

Jim Trotter of SI.com reports that the NFLPA* has renegotiated its contracts with outside counsel, and that the term “flat fee” is part of the deal.

This development strongly implies that guys like Jeffrey Kessler and Jim Quinn weren’t previously being paid by the hour in the Tom Brady lawsuit, but pursuant to a contingency fee arrangement, which would have given them a piece of the eventual verdict. Given that such a judgment after a lost season of football and the antitrust trebling effect could have exceeded $12 billion, the lawyers could have gotten $4 billion or more, subject to court approval.

 

[Rogah]

This development strongly implies that guys like Jeffrey Kessler and Jim Quinn weren’t previously being paid by the hour in the Tom Brady lawsuit, but pursuant to a contingency fee arrangement, which would have given them a piece of the eventual verdict. Given that such a judgment after a lost season of football and the antitrust trebling effect could have exceeded $12 billion, the lawyers could have gotten $4 billion or more, subject to court approval.

And this is why everyone hates lawyers so much. They profit by making the situation worse. They honestly don't want a settlement. The very nature of the profession is one big conflict of interest.

 

[cowboys#1]

And this is why everyone hates lawyers so much. They profit by making the situation worse. They honestly don't want a settlement. The very nature of the profession is one big conflict of interest.

lawyers dont really care what people think of them. they make a living that way.

 

[FuzzyLumpkins]

And this is why everyone hates lawyers so much. They profit by making the situation worse. They honestly don't want a settlement. The very nature of the profession is one big conflict of interest.

So Florio makes up an outlandish hypothetical, you insert that for truth and then assume motivations.

Well done.

 

[Rogah]

So Florio makes up an outlandish hypothetical,

Uh, what part of a legal team taking 33% of a settlement is "outlandish" to you? That's actually pretty much par for the course in a civil settlement.

you insert that for truth and then assume motivations.

Well done.

Thank you. Of course, if you've ever dealt with lawyers, you would know that everything I said is 100% true, regardless of whether or not Florio's report is accurate.

On a side note, I find it hilarious how much disdain Florio - who is a lawyer - has for other members of his own profession. Even lawyers hate lawyers!

 

[theogt]

And this is why everyone hates lawyers so much. They profit by making the situation worse. They honestly don't want a settlement. The very nature of the profession is one big conflict of interest.

Flat fee doesn't mean contingency fee. There is almost zero chance they were working on contingency. The tweet that Florio is basing his post on doesn't suggest that at all. I'm not sure where he got it from, but if someone is working on a "flat fee" it means they're NOT getting a percentage of any liability or settlement.

My guess is that the lawyers were previously being engaged on a per hour basis, but the parties negotiated a flat fee, which approximated the estimated hourly rates. This is not uncommon. Under no circumstances were the lawyers ever going to see $4 billion or anything remotely close to that. But kudos to Florio for taking the sensationalism up a notch.

 

[FuzzyLumpkins]

Uh, what part of a legal team taking 33% of a settlement is "outlandish" to you? That's actually pretty much par for the course in a civil settlement.
Thank you. Of course, if you've ever dealt with lawyers, you would know that everything I said is 100% true, regardless of whether or not Florio's report is accurate.

On a side note, I find it hilarious how much disdain Florio - who is a lawyer - has for other members of his own profession. Even lawyers hate lawyers!

No that it would be a $12 billion settlement with such a large contingency. Thats outlandish. Its the outer limit as to what they could be going for if all the stars align to your assumptions.

this is also not 'par the course' civil litigation. Its federal antitrust and I am not sure but its par the course that contingency percentages go down at larger dollar amounts not up.

I actually know dozens of lawyers and have worked with a few for several different reasons.

100% true huh?

 

[Rogah]

Flat fee doesn't mean contingency fee. There is almost zero chance they were working on contingency. The tweet that Florio is basing his post on doesn't suggest that at all. I'm not sure where he got it from, but if someone is working on a "flat fee" it means they're NOT getting a percentage of any liability or settlement.

Yes, that's the point. That's why this development is seen as a sign that there won't be any court imposed settlement, and that the issue will be resolved via collective bargaining. The lawyers are still needed to cross the t's, but not to file legal briefs, go to court, etc, etc.

My guess is that the lawyers were previously being engaged on a per hour basis, but the parties negotiated a flat fee, which approximated the estimated hourly rates.

Yes, but you can't estimate hourly rates if you have no idea if this matter is going to be resolved within a week or if it's going to take months. Hence the belief that a resolution is indeed near.

This is not uncommon. Under no circumstances were the lawyers ever going to see $4 billion or anything remotely close to that. But kudos to Florio for taking the sensationalism up a notch.

I will certainly concede the $4 billion estimate is too high, but fact remains that a percentage of huge settlement is still a higher value than straight up billable hours.

And also the fact remains that, like all sorts of other negotiations from regular divorces to NFL labor negotiations, the longer it drags out the more money the lawyers make.

 

[Rogah]

No that it would be a $12 billion settlement with such a large contingency. Thats outlandish. Its the outer limit as to what they could be going for if all the stars align to your assumptions.

this is also not 'par the course' civil litigation. Its federal antitrust and I am not sure but its par the course that contingency percentages go down at larger dollar amounts not up.

I actually know dozens of lawyers and have worked with a few for several different reasons.

100% true huh?

I gladly admit the $4 billion figure is inflated, but fact remains - and you have done nothing to dispute this - that the lawyers profit financially by dragging things out as much as possible and bringing the matter to court for a settlement.

For some reason you seem hell bent on defending a group of people that 99% of the rest of society can't stand, and you are certainly entitled to your opinions. But like I said before, it amuses me how Florio himself shows so much disdain for his own profession now that he is no longer practicing.

In other words, even lawyers hate lawyers. :laugh2: