PrepTest 139

[lcid:3653] Prep Test 139 LSAT — Reading Comp — S2 Reading comp

Passage

Questions 21-27  .        In October 1999, the Law Reform Commission  . of Western Australia (LRCWA) issued its report,  . Remaining source text redacted.
Passage walkthrough
Passage Summary

Topic: Legal


Paragraph 1

  • Paragraph note
    • A proposed change in LRCWA report (introducing contingency fees in Western Australia)
  • Views, minor Meta-Structures, and the author's attitude
    • Definition of "contingency fee": Lawyer gets paid only if they're successful in the case (third sentence)
    • Author's view:
      • The Law Reform Commission of Western Australia (LRCWA) report recommends several recommendations to introduce contingency fees (second sentence)
    • Comparison, according to the author:
      • Lawyers take on more risk under a contingency-fee arrangement , so the fees are higher than normal (last sentence)
    • Author's attitude: "several important recommendations" (second sentence); "generally exceed" (last sentence)

Paragraph 2

  • Paragraph note
    • Details of contingency fee proposal ("uplift" fee intention; requirements: (1) last resort and (2) client can't pay the normal fee)
  • Views, minor Meta-Structures, and the author's attitude
    • Definition of "uplift" contingency fee: Lawyers' normal fee plus a percentage of fee as bonus if win (first sentence)
    • The intention of "uplift" fee:
      • Prevent lawyers from getting too much and clients too little (second sentence)
    • List of two requirements of an "uplift" fee, according to LRCWA:
      • The fee must be a last resort after they've tried to arrange a normal fee (last sentence)
      • Lawyers must be satisfied that the clients can't afford the normal fee if they don't win (last sentence)

Paragraph 3

  • Paragraph note
    • Author's opinion on how requirements affect lawyers (forces lawyers into a burdensome investigation into factors that may change)
  • Views, minor Meta-Structures, and the author's attitude
    • Author's view:
      • It's unfortunate that the LRCWA's recommendation would require lawyers to look at more than just law (client finances; cost of litigation), which is an onerous (burdensome) investigation into factors that may change as the litigation goes on (first and last sentences)
    • Example of factors that change as the lawsuit goes on, according to the author:
      • Strategies adopted by the opposing side (last sentence)
    • Author's attitude: "Unfortunately" (first sentence); "forced to investigate" (first sentence); "onerous for a number of reasons, not least of which ... change as the case unfolds" (last sentence)

Paragraph 4

  • Paragraph note
    • Author's opinion on how requirements affect clients (unfair since only the least well-off can use it when reasons for it apply to everyone)
  • Views, minor Meta-Structures, and the author's attitude
    • Author's view:
      • The LRCWA's requirements are unfair because they limit the freedom of contract to clients who don't "qualify" (middle- and even some upper-income people) when the reasons for entering the arrangement apply to everyone (first through third sentences)
    • List of reasons for entering a contingency fee relationship:
      • Finance litigation costs (fourth sentence)
      • Shift risk to lawyers (fifth sentence)
      • Align the lawyer's and client's interests, increasing lawyers' diligence and commitment (last sentence)
    • Author's attitude: "burdensome" (first sentence); "unfair" (first sentence); "unjustly limit freedom of contract" (second sentence); "make certain types of litigation inaccessible" (second sentence); "More importantly" (third sentence), "primary reasons ... hold for all clients" (third sentence); "reasonable to assume" (last sentence); "increase lawyers' diligence and commitment" (last sentence)

Main Point: The proposed change to allow contingency-fee arrangements in Western Australia would be burdensome for lawyers and unfair to clients. 

Meta-Structure?

Criticizing a Viewpoint: This passage best fits the Criticizing a Viewpoint Meta-Structure.* In such a passage, the author describes a view held by another person or group and then criticizes their view. Importantly, the author’s argument should focus primarily on why the view is wrong, unjustified, or misguided. (If the author offers an alternative, then the passage may be better described as an Old Approach/New Approach passage. If the author focuses on a misconception or oversight, the passage may be better described as a Correcting the Record passage.)

In this case, the author spends almost the entire passage arguing why LRCWA's recommendation to adopt an "uplift" contingency-fee arrangement in Western Australia is bad. (The author may tacitly acknowledge that the recommendations might have some benefit — clients who couldn't otherwise afford a lawyer would be able to. But other than that, the recommendations are all bad for the author.) The author uses the third paragraph to explain why these arrangements would be too burdensome for lawyers and the fourth paragraph to show how the arrangements would be unfair to clients.

When a passage utilizes a Criticizing a Viewpoint passage, the main point is generally the author’s central criticism. We summarized the author's two primary criticism in our anticipated main point.

*As with most passages that use a Critical Meta-Structure, we could use another Meta-Structure from that family to describe this passage — particularly Correcting the Record. We could also call this as a Problem/Solution passage, as long as we note that the author is very sour on the proposed solution.

List: This passage presents several lists. The first is in the second paragraph, where a list of requirements that must be met before a contingency-fee arrangement is allowed is presented (P2, S3). The second is in the fourth paragraph, where a list of reasons that all clients would enter into such an arrangement is presented (P4, S3-S6). These are limited and exist as support for the author's overall argument, so they're likely to be asked about in a question or two while not necessarily being reflected in the correct answers to big-picture questions.

Last Thoughts?

This passage includes quite a bit of information about what a contingency-fee arrangement is, with not only a general description but a discussion of the specific type discussed here. You may have your own idea of what a contingency-fee arrangement is, creating an expectation that might not match what's defined here. It's important to be very clear on what the specific type of contingency-fee arrangement in the passage — the "uplift" fee arrangement — is. That's defined in the second paragraph. When a lawyer wins, they get their normal fee plus an "agreed-upon additional percentage of that fee." So it's not a percentage of the settlement or verdict, but rather a percentage of their normal fee that they receive as a "bonus" for winning. We can almost guarantee that there will be a question testing your ability to distinguish what is defined here from what most people believe a normal contingency-fee arrangement with a lawyer is.

Question prompt

The phrase "gaining disproportionately Remaining source text redacted.
Why the credited answer is right

Credited answer: B

The notes below walk through why it fits the stem and how to eliminate the rest.

Question Type

Legal

Strategy Overview

Review the purpose of the paragraph in which the expression is found, including the expression in question, then use the purpose and the immediate context to define the expression's meaning

Answer Anticipation

This question asks what the author meant when they used the phrase "gaining disproportionately from awards of damages." This phrase appeared in the second paragraph, so we should start by defining the role of that paragraph, as that can sometimes provide contextual clues about the author's meaning. Our note for the second paragraph is, "Details of contingency fee proposal ("uplift" fee intention; requirements: (1) last resort and (2) client can't pay the normal fee)." This phrase surely relates to the "intention" of the "'uplift' fee," but we'll need to review the passage to learn more about its specific meaning.Now, turning our attention to the expression in inquiry, we'll see that the full sentence begins with "This restriction," clearly calling back to the previous sentence, so we should start our work there. The restriction refers to the uplift-fee arrangement allowing lawyers to collect their "normal fee plus an agreed-upon additional percentage of that fee" (P2, S1). The goal of this restriction, according to the following sentence, is to prevent lawyers from "gaining disproportionately from awards of damages" — the phrase in question — and thus taking away from fair compensation to their clients (P2, S2). So, the author compares an uplift-fee to some other type of fee that would allow the lawyer to gain "disproportionately" from the awards of damages, taking away money that should go to the client. What other type of fee does the author allude to?Well, it can't be the lawyer's normal fee — that would be lower than the uplift fee. However, the first paragraph's description of a general contingency fee suggests an answer. The author says lawyers take on more risk under a contingency-fee arrangement, so their fees are higher than normal (P1, S4). So, a contingency fee arrangement is higher than the normal fee, given the lawyer's risk. But the uplift fee prevents this fee from being too high, as it could be if the contingency fee was based on the award of damages (this would be clearer if you knew that contingency fees based on the award of damages in the U.S. are often 30-40% of the client's damages). So, by "gaining disproportionately from awards of damages," the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client.With this meaning in mind, let's head to the answer choices.

Answer choices

  1. A
    receiving a payment that Remaining source text redacted.
    Why choice A is not credited

    (A) Does this say that the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client?

    No. In fact, this just defines what a contingency fee. Contingency fee agreements are said to exceed regular fees (P1, S4), and uplift fee agreements similarly are for the normal fee plus an additional percentage of that fee (P2, S1). Since both exceed the normal fee, they can both be said to result in a payment of greater monetary value than the legal services rendered. As such, the LRCWA isn't concerned with lawyers gaining more than the value of their legal services, just so much more that it becomes unjust towards the client.

  2. B
    receiving a higher portion Remaining source text redacted.
    Why choice B matches the stem

    (B) Does this say that the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client?

    Yes! We can select (B) and move on to the next question. After all, the first paragraph notes that the higher-than-normal amount justified under a contingency-fee agreement is due to the risk the lawyer takes that they'll lose and thus gain nothing (P1, S4). However, the LRCWA, in the cited line, also expresses a fear that a fee might be so great as to prevent the plaintiff/client from getting just compensation for their injury (P2, S2). So, a "disproportionate" fee refers to a fee that is so large that it takes an unreasonable amount of money away from the client, as this answer choice says.

  3. C
    receiving a higher proportion Remaining source text redacted.
    Why choice C is not credited

    (C) Does this say that the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client?

    No. The line in question does bring up "just compensation" to the plaintiff, but it doesn't sound like that determination is being made by the clients. Instead, it seems based on what the LRCWA considers fair. It could be that a client would find 25% of $10m quite fair, while the LRCWA wouldn't, and thus this answer is incorrect.

  4. D
    receiving a payment that Remaining source text redacted.
    Why choice D is not credited

    (D) Does this say that the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client?

    Nope. We can cross off (D). Besides, if the case is unsuccessful and there's a contingency-fee arrangement, the lawyer gets nothing (P1, S3). So, under any contigency-fee arrangement, the lawyer would receive a higher amount than they would have if the case was unsuccessful. Therefore, this answer doesn't really make sense in the context of discussing contingency fees.

  5. E
    receiving a higher proportion Remaining source text redacted.
    Why choice E is not credited

    (E) Does this say that the author means the uplift fee keeps the lawyer from earning too much, given their work and level of risk, of the damages awarded to the client?

    Nope. We can eliminate (E). Besides, this section doesn't discuss what the jury or judge intended for the lawyer to receive. The closest it gets is a discussion of what is "just" (P2, S2), but that isn't necessarily from the viewpoint of those involved in the verdict.

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