Disclaimer: I am not an attorney and this is not legal advice.
On February 2nd, Null's attorney launched on IOLTA account to ostensibly pay for litigation costs. According to their website: https://lolcowfund.hardin.law/ But what exactly is an IOLTA?
IOLTA (Interest on Lawyers' Trust Accounts) is a way of raising money for charitable purposes. It is intended to fund civil legal services for people who are indigent (impoverished). IOLTAs were set up in the United States after federal banking laws were changed to allow some checking accounts to earn interest. IOLTAs operate in all 50 states, Washington DC, Puerto Rico and the US Virgin Islands.
An IOLTA is a trust account set up by an attorney to handle money that belongs to the client such as settlement checks, advance payments for services not yet performed or funds needed to pay various court fees. If the amount of funds is substantial the attorney can deposit the funds into a trust account so they can earn interest for the client.
Since the money in the trust account belongs to the client, the interest earned from that account also belongs to the client. Normally the funds are only in there for a short time or they are relatively small and don't earn interest. Lawyers are not permitted to derive a financial benefit from the interest on an IOLTA.
Source: https://www.americanbar.org/groups/interest_lawyers_trust_accounts/overview/
More information on IOLTAs: https://www.cosmolex.com/resource-c...t-happens-to-the-interest-in-a-trust-account/
Now according to Quora, a lawyer will usually spend between 10 to 50 hours on a case depending on its complexity.
Currently: Null's fund has $157,886 in it. Null has stated that he is looking for an out of court settlement rather than an expensive court case.
In a previous thread, I think it stated that Matthew Hardin's legal fees ranged from $285 to $400 per hour which for the Washington DC area is reasonable.
Let's assume that Hardin charges $340/hour which is approximately halfway between these two figures.
At 10 hours X $340/hour Hardin's legal fees amount to $3,400
At 50 hours X $340/hour Hardin's legal fees amount to $17,000
Based on Hardin's previous thread, I am going to assume that he isn't the type of person who is a "ball of fire" litigator but one who prefers to settle things quietly behind the scenes. So It would be a reasonable conclusion that Hardin's time would probably be in the lower end of the 10 to 50 hour range.
Contingency Fees vs. Hourly rate: Lawyers who handle civil litigation cases typically work on a contingency basis. In other words, if they win the case they get a percentage of the damages awarded. Typically the average is around 33% (1/3). So if Null and Epik for example agree to a $100,000 out of court settlement, Hardin would collect 1/3 of that about $33,333, while Null would get the rest $66,666 minus whatever court costs would involved.
And here is the catch with a contingency arrangement. Generally on a contingency basis lawyers only get paid if they win. If an lawyer doesn't think they have a very strong case, that attorney might enter negotiations with the other party to come up with an agreed upon settlement and avoid the expense of a trial.
In other words in the event of an out of court settlement, the IOLTA funding may not even be necessary (certainly not to the tune of $157,886).
On February 2nd, Null's attorney launched on IOLTA account to ostensibly pay for litigation costs. According to their website: https://lolcowfund.hardin.law/ But what exactly is an IOLTA?
IOLTA (Interest on Lawyers' Trust Accounts) is a way of raising money for charitable purposes. It is intended to fund civil legal services for people who are indigent (impoverished). IOLTAs were set up in the United States after federal banking laws were changed to allow some checking accounts to earn interest. IOLTAs operate in all 50 states, Washington DC, Puerto Rico and the US Virgin Islands.
An IOLTA is a trust account set up by an attorney to handle money that belongs to the client such as settlement checks, advance payments for services not yet performed or funds needed to pay various court fees. If the amount of funds is substantial the attorney can deposit the funds into a trust account so they can earn interest for the client.
Since the money in the trust account belongs to the client, the interest earned from that account also belongs to the client. Normally the funds are only in there for a short time or they are relatively small and don't earn interest. Lawyers are not permitted to derive a financial benefit from the interest on an IOLTA.
Source: https://www.americanbar.org/groups/interest_lawyers_trust_accounts/overview/
More information on IOLTAs: https://www.cosmolex.com/resource-c...t-happens-to-the-interest-in-a-trust-account/
Now according to Quora, a lawyer will usually spend between 10 to 50 hours on a case depending on its complexity.
Currently: Null's fund has $157,886 in it. Null has stated that he is looking for an out of court settlement rather than an expensive court case.
In a previous thread, I think it stated that Matthew Hardin's legal fees ranged from $285 to $400 per hour which for the Washington DC area is reasonable.
Let's assume that Hardin charges $340/hour which is approximately halfway between these two figures.
At 10 hours X $340/hour Hardin's legal fees amount to $3,400
At 50 hours X $340/hour Hardin's legal fees amount to $17,000
Based on Hardin's previous thread, I am going to assume that he isn't the type of person who is a "ball of fire" litigator but one who prefers to settle things quietly behind the scenes. So It would be a reasonable conclusion that Hardin's time would probably be in the lower end of the 10 to 50 hour range.
Contingency Fees vs. Hourly rate: Lawyers who handle civil litigation cases typically work on a contingency basis. In other words, if they win the case they get a percentage of the damages awarded. Typically the average is around 33% (1/3). So if Null and Epik for example agree to a $100,000 out of court settlement, Hardin would collect 1/3 of that about $33,333, while Null would get the rest $66,666 minus whatever court costs would involved.
And here is the catch with a contingency arrangement. Generally on a contingency basis lawyers only get paid if they win. If an lawyer doesn't think they have a very strong case, that attorney might enter negotiations with the other party to come up with an agreed upon settlement and avoid the expense of a trial.
In other words in the event of an out of court settlement, the IOLTA funding may not even be necessary (certainly not to the tune of $157,886).