Final answer:
Contingency fees have traditional objections related to excessive fees, conflicts of interest, and frivolous lawsuits. Modern limitations involve ethical guidelines and state regulations. A sliding-scale contingency fee varies depending on the settlement amount.
Step-by-step explanation:
Traditional objections to contingency fees include concerns about excessive fees, conflicts of interest, and the potential for frivolous lawsuits. Critics argue that contingency fees encourage lawyers to pursue cases primarily for financial gain, rather than the interests of justice.
The most important modern limitations on contingency fees involve ethical guidelines and regulations set by state bar associations, which aim to ensure fairness and protect clients from excessive fees. These limitations often include caps on the percentage of the potential award that a lawyer can receive as a contingency fee.
A sliding-scale contingency fee is a fee structure in which the percentage charged by the lawyer varies depending on the amount recovered in the case. For example, the fee might be lower for smaller settlements and higher for larger ones. This fee structure is designed to provide an incentive for the lawyer to maximize the recovery for the client.