76-9.

• Case Date: October 15, 1976
• Court: Alaska

Alaska Ethics Opinion 1976. 76-9. Ethics Opinion No. 76-9Unethical for Attorney to Instigate or Participate in the Employment of an Investigator on a Contingent Fee.The Committee has been asked the following question: Assume that an individual is involved in an automobile accident. Further assume that the individual believes that the other party was at fault in causing the accident and wishes to pursue recovery of damages through litigation. Assume further that the party then contacts counsel and after having the hourly fee versus contingent fee situation thoroughly explained, the party elects to enter into a contingent fee professional employment contract with the attorney, for an appropriate percentage of the recovery which is reasonable and just. Now, then assume further that the party who has now taken the posture of being a prospective plaintiff in litigation is without sufficient funds or inclination to pay for an hourly fashion or flat fee basis for investigative services. Assume further then that either at the suggestion of counsel or independently, the party then enters into a contingent fee contract with an investigating firm; said contract providing that the investigating firm will do investigation of the incident itself and supply reports to counsel (and theoretically testify as to their investigation or the work product thereof) in return for a percentage of the ultimate recovery, said percentage being reasonable and just. The question I wish to present to the Ethics Committee is whether or not the investigator's contingent fee agreement directly...