If you are seeking legal representation, you may be considering hiring an attorney who works on a contingency fee basis. This means that you will only pay the attorney if you win your case. However, before you sign a contingency fee agreement, it is important to understand what it entails.
A contingency fee agreement is a contract between a client and an attorney in which the attorney agrees to provide legal services in exchange for a percentage of the client’s recovery. The agreement will outline the terms of the attorney’s representation, including the scope of the legal services, the fee percentage, and how expenses will be handled.
To help you understand what a contingency fee agreement might look like, we have provided a sample for you to review:
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Contingency Fee Agreement
This agreement (“Agreement”) is made and entered into on [Date] by and between [Client Name], located at [Address], (“Client”) and [Attorney Name], located at [Address], (“Attorney”).
1. Scope of Services
Attorney agrees to provide legal services to Client in connection with [Brief Description of Legal Matter]. These services may include, but are not limited to, document preparation, legal research, negotiation, and representation in court.
2. Fee Structure
Attorney agrees to provide these services on a contingency fee basis, which means that Attorney’s fee will be a percentage of any recovery obtained on behalf of Client. The fee percentage shall be [Percentage] of the gross recovery. If no recovery is obtained, no fee will be due.
3. Responsibility for Expenses
In addition to the contingency fee, Client will be responsible for payment of all expenses incurred by Attorney in connection with the legal matter, including but not limited to court costs, filing fees, deposition fees, and expert witness fees. These expenses will be deducted from any recovery obtained on behalf of Client.
4. Settlement of Claim
Client retains the right to accept or reject any settlement offer made in connection with the legal matter, and Attorney will not settle the claim without Client’s consent.
5. Termination of Representation
Either party may terminate this Agreement at any time for any reason upon written notice to the other party. Upon termination, Attorney will be entitled to payment for all services rendered up to the date of termination, as well as reimbursement for any expenses incurred.
6. Assignment of Claim
Client may not assign any rights or claims arising from the legal matter to any third party without Attorney’s written consent.
7. Applicable Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
8. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings or agreements, whether written or oral. This Agreement may only be modified in writing signed by both parties.
9. Signatures
This Agreement may be executed in counterparts, each of which shall be deemed an original, and may be executed by electronic means. The parties have executed this Agreement as of the date first written above.
[Client Name] [Attorney Name]
[Signature] [Signature]
[Date] [Date]
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It is important to note that this sample agreement is intended for informational purposes only and should not be used as a substitute for legal advice. If you are considering hiring an attorney on a contingency fee basis, it is important to consult with a qualified attorney who can help you understand your rights and obligations under the agreement.
In conclusion, a contingency fee agreement is an important legal contract that outlines the terms of an attorney’s representation and fee structure. By understanding the terms of the agreement, you can make an informed decision about whether to hire an attorney on a contingency fee basis.