Contingency Fee Agreement Template

A contingency fee agreement is a legal contract between an attorney and a client that outlines the terms of their relationship, including the attorney’s fees. In a contingency fee arrangement, the attorney’s fees are typically a percentage of the client’s recovery in a case. This type of fee structure is often used in personal injury cases, class-action lawsuits, and other types of litigation where there is a significant risk of not recovering anything.

Key Elements of a Contingency Fee Agreement

While the specific terms of a contingency fee agreement can vary, there are several essential elements that should be included:

1. Identification of the Parties

Clearly state the names of the attorney and the client.

Include the client’s address and contact information.

Identify the specific case or matter that is the subject of the agreement.

2. Scope of Representation

Define the exact nature of the legal services that the attorney will provide.

Specify the types of claims or defenses that will be pursued.

Outline the attorney’s responsibilities and the client’s obligations.

3. Contingency Fee Percentage

Clearly state the percentage of the client’s recovery that will be paid to the attorney as a fee.

Specify whether the fee is calculated on the gross recovery or the net recovery after deducting expenses.

Address any potential adjustments to the fee percentage based on the complexity of the case or the amount of time and effort required.

4. Fee Structure and Payment Terms

Outline the specific terms of the fee arrangement, including when the fee will be paid and how it will be calculated.

Address any potential costs or expenses that the client may be responsible for, such as court fees, expert witness fees, or investigation costs.

Specify whether the attorney will be entitled to a retainer fee or advance payment of costs.

5. Attorney’s Duties and Responsibilities

Clearly outline the attorney’s obligations to the client, including the duty of diligence, the duty of loyalty, and the duty of confidentiality.

Specify the attorney’s responsibilities for communicating with the client, keeping the client informed of the progress of the case, and providing legal advice.

6. Client’s Duties and Responsibilities

Outline the client’s obligations to the attorney, including the duty to cooperate, the duty to provide information, and the duty to pay costs and expenses.

Specify the client’s responsibilities for providing necessary documentation, attending meetings, and complying with the attorney’s instructions.

7. Termination of the Agreement

Specify the circumstances under which either party may terminate the agreement.

Address the issue of attorney’s fees if the agreement is terminated before the case is resolved.

Outline any potential dispute resolution mechanisms, such as arbitration or mediation.

8. Governing Law and Jurisdiction

Specify the law that will govern the agreement and the jurisdiction in which any disputes will be resolved.

9. Entire Agreement Clause

Include a clause stating that the agreement constitutes the entire understanding between the parties and supersedes any prior or contemporaneous communications or agreements.

Design Elements for a Professional Contingency Fee Agreement

In addition to the substantive content, the design elements of a contingency fee agreement can also contribute to its professionalism and effectiveness. Here are some key design considerations:

Clear and concise language: Use plain language that is easy to understand, avoiding legal jargon or technical terms.

Consistent formatting: Use consistent formatting throughout the agreement, including fonts, font sizes, margins, and spacing.

Professional appearance: Use a professional-looking template or design that conveys a sense of credibility and trust.

Logical organization: Organize the agreement in a logical and easy-to-follow manner, using headings and subheadings to divide the content into sections.

Attention to detail: Pay attention to the details of the agreement, ensuring that there are no errors or inconsistencies.

By carefully considering both the substantive content and the design elements, you can create a professional and effective contingency fee agreement that protects the interests of both the attorney and the client.