Importance

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Abstract

This application discloses method and system in which a party independent of the law firm contracts with the law firm to reimburse the law firm for interest costs incurred on out-of-pocket expenses paid by the law firm. In one embodiment, a law firm incurs an out-of-pocket expense for a client, and contemporaneously with incurring the expense, the independent party assesses a fee to the law firm for the particular out-of-pocket expense. The fee is assessed, in one embodiment, according the amount of time the law firm is expected to carry the expense. The law firm bills the client for the expense and associated assessed fee as disbursements. The law firm receives payment by the client of the expense and the assessed fee, whereby the client reimburses the law firm for the expense and also reimburses the law firm for the assessed fee. The actual carry period for the expense is determined by calculating the time from the point the expenses was incurred/advanced by the firm until the time reimbursement for the expense was received. The assessed fee is paid to the independent party. The independent party pays the law firm an interest payment to reimburse the law firm for the actual cost of carrying the expense, such that the law firm is reimbursed only for an actual cost incurred in carrying the expense--the independent party reimburses the law firm for the interest cost incurred from the proceeds of the assessed fee.

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First Claim