Contingency Fee Agreement Template

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A Contingency Fee Agreement is a legal contract between an attorney and a client. It outlines the terms of their professional relationship, particularly the fee arrangement, which is based on a percentage of the recovery obtained by the attorney on the client’s behalf. This guide will provide you with the essential elements to create a professional and legally sound contingency fee agreement template.

Essential Elements of a Contingency Fee Agreement

1. Parties to the Agreement

Sample Fee Agreement Forms  PDF  Costs In English Law  Lawyer
Sample Fee Agreement Forms PDF Costs In English Law Lawyer

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Client Information:

  • Full legal name
  • Address
  • Phone number
  • Email address
  • Attorney Information:
  • Full legal name
  • Law firm name
  • Bar admission number
  • Address
  • Phone number
  • Email address

  • 2. Scope of Representation

    Clear Description of the Legal Matter:

  • Provide a detailed overview of the legal issue or claim.
  • Specify the jurisdiction where the matter will be litigated.
  • Attorney’s Responsibilities:
  • Outline the specific services the attorney will provide.
  • Detail the extent of the attorney’s involvement in the case.

  • Contingent Fee Agreement Sample  PDF  Lawyer  Lawsuit
    Contingent Fee Agreement Sample PDF Lawyer Lawsuit

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    3. Contingency Fee Percentage

    Percentage Rate:

  • Clearly state the percentage of the recovery that the attorney will receive as a fee.
  • Specify whether the percentage applies to the gross recovery or the net recovery after expenses.
  • Fee Calculation:
  • Explain how the fee will be calculated, including any deductions for costs and expenses.
  • Consider whether the fee will be a flat percentage or a tiered structure.

  • 4. Costs and Expenses

    Fee agreement template - free to use
    Fee agreement template – free to use

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    Client’s Responsibility:

  • Clearly outline the client’s responsibility for costs and expenses, such as filing fees, expert witness fees, and investigation costs.
  • Specify how these costs will be advanced or reimbursed.
  • Attorney’s Responsibility:
  • If applicable, indicate any costs or expenses that the attorney will advance or pay on the client’s behalf.
  • Detail how these costs will be recovered, either through a deduction from the recovery or a separate billing.

  • 5. Reimbursement of Costs and Expenses

    Reimbursement Terms:

  • Specify the terms under which the client will reimburse the attorney for costs and expenses advanced.
  • Consider whether the reimbursement will be made in full or pro-rated.
  • Interest on Reimbursements:
  • If applicable, outline any interest that may accrue on unreimbursed costs and expenses.

  • 6. Termination of Representation

    Client’s Right to Terminate:

  • Clearly state the client’s right to terminate the agreement at any time.
  • Specify the conditions under which the client may terminate without incurring liability for costs and expenses.
  • Attorney’s Right to Withdraw:
  • Outline the attorney’s right to withdraw from representation under certain circumstances, such as non-payment of fees or failure to cooperate.

  • 7. Division of Settlement or Judgment Proceeds

    Allocation of Fees and Costs:

  • Clearly explain how the recovery will be divided between the attorney and the client.
  • Specify the order in which fees, costs, and expenses will be deducted.
  • Tax Implications:
  • Briefly discuss the potential tax implications of the recovery and any applicable tax laws.

  • 8. Governing Law and Dispute Resolution

    Governing Law:

  • Specify the jurisdiction whose laws will govern the agreement.
  • Dispute Resolution:
  • Outline the dispute resolution mechanism, such as mediation or arbitration, in case of disagreements between the parties.

  • 9. Entire Agreement

    Integration Clause:

  • State that the agreement constitutes the entire understanding between the parties and supersedes all prior agreements or representations.

  • 10. Modifications and Amendments

    Written Modification:

  • Require any modifications or amendments to the agreement to be in writing and signed by both parties.

  • 11. Attorney’s Lien

    Lien Rights:

  • If applicable, state the attorney’s right to assert a lien on the recovery to secure payment of fees and costs.

  • 12. Signatures

    Signatures of Both Parties:

  • Require both the client and the attorney to sign and date the agreement.

  • Design Elements for a Professional Template

    Clean and Professional Layout:

  • Use a clear and easy-to-read font, such as Times New Roman or Arial.
  • Maintain consistent formatting throughout the document.
  • Use headings and subheadings to organize the content.
  • Clear and Concise Language:
  • Use plain language and avoid legal jargon.
  • Define any technical terms that may be unfamiliar to the client.
  • Bold and Italic Formatting:
  • Use bold and italic formatting to emphasize key points or important terms.
  • White Space:
  • Use ample white space to improve readability.
  • Professional Logo:
  • Include your law firm’s logo at the top of the document.

  • By carefully considering these elements, you can create a professional and effective contingency fee agreement template that protects your interests and provides clarity for your clients.