You know you have a case. Someone has refused to
refund your deposit of $2,500 on a horse you planned to buy. The
case, you believe, is strong. After all, the purchase agreement
both of you signed had language requiring the seller to refund
your deposit if the horse failed a pre-purchase exam. And fail
he did. You need the $2,500 refund, but you realize that the cost
of a lawyer would likely exceed this amount. Are there other options
available within your budget?
Yes. This article will discuss low cost legal services
and alternatives to the legal system.
What Makes Legal Services Costly?
In the vast majority of cases, you must
pay your own legal fees. Legal systems in other countries, such
as Great Britain, impose a "loser pays" rule. In the
United States, a court might order the loser in a legal dispute
to pay the winner's legal fees under these circumstances:
A statute in the applicable jurisdiction expressly provides
that in cases like yours, the court can order the lose to pay
the winner's fees. Provisions like this are commonly found in
deceptive trade practice and consumer protection laws, particularly
if there is evidence of a "willful" violation of the
law.
A court rule in the applicable jurisdiction provides
that the loser must pay. For example, many court rules allow
the court to order the loser to pay the winner's legal fees
after the court has specifically ruled that the losing party
asserted a frivolous claim or defense in a lawsuit.
The parties had a legally-binding contract, which clearly
states that the loser must pay the winning party's attorney
fees in the event of a legal dispute.
Do All Lawyers Derive Their Fee From a Percentage of the
Winnings?
Everyone has seen lawyer advertisements
that state: "You pay no fee unless you win." This describes
a contingency fee arrangement in which your legal fees will be
contingent on (or a percentage of) what you may recover from the
losing party. This arrangement is common in personal injury cases
or cases that involve loss or damage to something of serious value.
Your state may regulate the maximum percentage the lawyer can
take as well as the types of legal matters that cannot be handled
on a contingency fee basis.
Is a Lawyer Appropriate for Every Legal Dispute?
The decision is yours. However, if you
prefer to handle a dispute on your own without a lawyer you have
a few options. Here are some of them:
Community Dispute Resolution or Mediation Centers
Your community, or one nearby, may have
a community dispute resolution center or a neighborhood justice
center. These centers are designed to help people quickly and
inexpensively settle their differences. With the cooperation of
both parties in a dispute, these centers can help schedule a meeting
in which you and the other party can discuss the problem and how
to resolve it. Depending on the center, they can provide offices
and trained personnel to help the parties work constructively
and positively. The process of mediation, which many of these
centers conduct, was explained in this author's book, Equine Law
& Horse Sense.
To find out about community resolution or mediation centers
in your area, contact your local courthouse, library, city hall,
or state or local bar association.
Small Claims Court
Every state has a small claims court, although
the states may name the court differently. These courts are typically
situated within each county and are established to resolve disputes
involving rather small amounts of money. The maximum amount of
money within the jurisdiction of a small claims court varies from
state to state. In Michigan the maximum dollar amount is currently
$1,750. Other states such as California, Georgia, Pennsylvania,
and Texas allow people to seek of to $5,000 in a small claims
court case. Tennessee allows recovery of up to $10,000 and in
some instances $15,000. Small claims courts are usually designed
for people to represent themselves in court without a lawyer.
Are There Other Low Cost Methods for Resolving Legal Disputes?
Yes. Although you may have a legal right
to receive a court-appointed and court-paid lawyer in some criminal
matters, this is not the case in civil legal matters. If you qualify
for free or low cost legal services, there are a few options available.
Here are some:
Legal Aid Organizations
You may be eligible for free or reduced cost
legal services through legal aid programs in your area. Eligibility
varies, and you will be asked to provide information about your
income, living expenses, financial needs, and the size of your
family. Check your phone book under the heading "Legal Aid"
or "Legal Services" or contact your local courthouse.
Free Legal Clinics at Local Law Schools
Many law schools nationwide offer legal aid
clinics for people in their communities. The assistance available
may be limited to consumer legal problems, traffic tickets, and
simple matters. Contact a law school in your area to find out
if programs are available for you.
Other Legal Assistance Programs
In many states across the country, bar associations (lawyer groups)
have organized special programs designed to offer low-cost legal
services to people of limited means who are not eligible for free
legal aid yet cannot afford the rates typically charged by lawyers.
These programs are encouraged by the American Bar Association
and are frequently known as "Greater Access to Justice Projects."
To find out whether your state has a project in progress, contact
the American Bar Association [(312) 988-5000] or your state or
local bar association.
Conclusion
In conclusion, please keep the following
ideas in mind:
- The notion of a "court appointed lawyer"
in all types of legal matters is a myth. Only in certain types
of criminal cases do courts appoint and pay defense counsel.
In all other types of cases, you are responsible for securing
your own lawyer.
- The notion that the loser pays legal fees in all disputes
is also a myth. Typically, the loser would only pay legal fees
if ordered to do so by a court. Courts may order this if a specific
statute, court rule, or contract clearly provides that
the loser must pay.
- Not all "legal" disputes demand the involvement
of a lawyer. In some cases, you and the other party to the dispute
might be able to resolve it on your own. Community dispute resolution
programs, found in many areas, might help the parties reach
their own mutually-acceptable resolution of some disputes.
- If you have been sued, don't wait to find a lawyer.
If you wait too long, you risk missing important court appearances
or deadlines. While your newly-retained lawyer might manage
to secure extensions of time or reverse adverse action taken
against you, there are no guarantees. Also efforts by your lawyer
to reverse adverse action, in themselves, can be costly.
About the Author
Julie I. Fershtman, Esq.
Fink, Zausmer & Kaufman, P.C.
31700 Middlebelt, Suite 150
Farmington Hills, MI 48334-2374
(248) 851-4111
E-MAIL: Fershtman@aol.com
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