Contingency Fee Agreement Template: A Formal Contractual Framework

A contingency fee agreement is a legal contract between a client and an attorney that outlines the terms of their professional relationship. Under a contingency fee arrangement, the attorney’s fees are contingent upon the successful outcome of the case. This means that the attorney only receives payment if they win the case or negotiate a favorable settlement.

Key Elements of a Contingency Fee Agreement

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

1. Parties to the Agreement

Clearly identify the client and the attorney.

Include their full names and contact information.

2. Scope of Representation

Define the specific legal matter that the attorney will handle.

Outline the nature of the case, the claims or defenses involved, and the jurisdiction in which the case will be litigated.

3. Contingency Fee Structure

Specify the percentage of the recovery that the attorney will receive as their fee.

Indicate whether the fee is calculated on the gross recovery or the net recovery after deducting costs and expenses.

Determine how costs and expenses will be handled, such as whether they will be advanced by the attorney or deducted from the recovery.

4. Fee Adjustments

Address any potential adjustments to the contingency fee, such as in cases of partial settlement or multiple defendants.

Outline the criteria for determining the appropriate fee in such circumstances.

5. Attorney’s Duties and Responsibilities

Clearly state the attorney’s obligations to the client, including:

Diligent representation

Communication with the client

Protection of the client’s interests

Adherence to ethical rules

6. Client’s Obligations

Outline the client’s responsibilities, such as:

Cooperation with the attorney

Timely provision of information

Payment of costs and expenses (if applicable)

7. Termination of the Agreement

Specify the conditions under which either party can terminate the agreement.

Address the consequences of termination, such as the disposition of attorney’s fees and the return of client property.

8. Governing Law and Dispute Resolution

Indicate the governing law that will apply to the agreement.

Specify the dispute resolution mechanism, such as mediation or arbitration, in case of disagreements between the parties.

9. Entire Agreement

State that the agreement constitutes the entire understanding between the parties and supersedes any prior or contemporaneous communications.

10. Signatures

Both the client and the attorney must sign the agreement to make it legally binding.

Include a date of signature for each party.

Design Considerations for a Professional Contingency Fee Agreement

Clarity and Conciseness: Use clear and concise language that is easy to understand. Avoid legal jargon that may confuse the client.

Organization: Structure the agreement in a logical and organized manner, using headings and subheadings to divide the content into sections.

Professional Appearance: Use a professional font and layout that reflects the seriousness of the legal matter. Consider using letterhead with the attorney’s contact information.

Consistency: Maintain consistency throughout the agreement in terms of formatting, language, and terminology.

Client-Centric Focus: Tailor the agreement to the specific needs and circumstances of the client. Use language that is understandable and reassuring.

By following these guidelines, you can create a professional and comprehensive contingency fee agreement that clearly outlines the terms of the attorney-client relationship and protects the interests of both parties.