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  3. Contingent fees, in which clients pay lawyers only if a case is won, have long been a feature of America’s legal system. Many ot

Contingent fees, in which clients pay lawyers only if a case is won, have long been a feature of America’s legal system. Many ot

admin2022-03-27  34
问题     Contingent fees, in which clients pay lawyers only if a case is won, have long been a feature of America’s legal system. Many other countries used to bar them, wary of importing America’s ambulance-chasing culture. But a belated acceptance of their benefits means they are now widely allowed. "No-win, no-fee" arrangements help shift risks from parties to a suit to their lawyers, and make it less likely that a would-be plaintiff decides not to press a strong case for fear of a big financial loss.
    Around a decade ago, some lawyers took the principle of risk-shifting further. They accepted money from third parties to fund cases in exchange for some of the winnings. Lawsuit finance has since taken off. Fortune 500 companies and New York’s elite law firms increasingly tap outside capital when pursuing multi-million-dollar suits.
    Funds that invest in lawsuits are on the rise. In the past 18 months some 30 have launched; over $2bn has been raised. Last year Burford Capital, an industry heavyweight, put $1. 3bn into cases—more than triple the amount it deployed in 2016. Lee Drucker of Lake Whillans, a firm that funds lawsuits, says he gets calls weekly from institutional investors seeking an asset uncorrelated with the rest of the market—payouts from lawsuits bear no relation to interest-rate rises or stockmarket swings.
    Such outside funding does not just enable plaintiffs to pursue potentially lucrative cases. It also allows law firms to hedge risk. Some clients, worried about the misaligned incentives caused by law firms’ sky-high hourly rates, insist on partial or full contingency-payment schemes. Outside funding lets firms recoup some revenue even if they do not win a case.
    Returns are usually a multiple of the investment or a percentage of the settlement, or some combination of the two. Funders of a winning suit can expect to double, triple or quadruple their money. Cases that are up for appeal, where the timespan is short—usually 18-24 months—and the chance of a loss slimmer, offer lower returns. New cases that are expected to take years offer higher potential payouts.
    A maturing market means more sophisticated offerings. To spread risk, funders are bundling cases into portfolios and taking a share of the proceeds. Last year Burford ploughed $726m into portfolio deals, compared with $72m into stand-alone suits.
    As funders compete for high-quality investments, opportunities in new markets arise. Bentham IMF, a lawsuit funder based in New York, has joined Kobre & Kim, a law firm, to set up a $30m fund for Israeli startups to pursue claims against multinationals—for example, over trade-secret violations. A burgeoning secondary market is likely to develop further, allowing investors to cash out before long-running suits are closed. Burford recently sold its stake in an arbitration case concerning two Argentine airlines for a return of 736％. Such mouth-watering profits should keep luring capital into the courtroom.
Which of the following is NOT true according to Paragraph 1?
选项 A、Contingent fees are payment to lawyers when he wins a case.
B、Contingent fees are still widely prohibited in many countries.
C、Contingent fees help transfer risks to a suit to the lawyers.
D、Contingent fees make a would-be plaintiff more likely to press a strong case.
答案B
解析 细节题。根据题干可定位至第一段。根据第一段第三句But a be lated acceptance of their benefits means they are now widely allowed. “但对这些费用益处的迟来的接受意味着它们现在被广泛采用。”与B项“许多国家仍然广泛禁止或有费”相反，即题干要求的NOT true选项；根据第一段第一句Contingent fees. in which clients pay lawyers only if a case is won，have long been a feature of America’s legal system. “只有在案件获胜的情况下，客户向律师支付的或有费用，一直是美国法律体系的一个特征”，与A项相符，故排除；根据第一段第四句“不赢不收费”的安排有助于将诉讼方面的风险转移给他们的律师”，与C项相符，故排除；根据第一段第四句make it less likely that a would-be plaintiff decides not to press a strong case for fear of a big financial loss“并使原告不太可能因担心大笔经济损失而决定不提起诉讼”，与D项相符，故排除。
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