CONTINGENT FEE, LONG FORM

 

 

____________ (“Lawyer”) will provide legal services to ___________ (“Client”), according to the terms set forth below.  

1.    CONDITIONS. This Agreement will not take effect, and Lawyer will have no obligation to provide legal services, until Client returns a signed copy of this Agreement and pays the initial deposit (advanced fee), if any, called for under Paragraph 5. 

2.    SCOPE OF SERVICES. Client is hiring Lawyer to represent Client in the matter of Client’s claims against _______________ and possibly others as future investigation may indicate, arising out of ______________, which occurred on, or about _______________.

       Lawyer will represent Client until a settlement or judgment is obtained by way of negotiations or arbitration or trial. Lawyer will oppose any motion for a new trial or any other post-trial motions filed by an opposing party, or will make any appropriate post-trial motions on Client’s behalf. After judgment, Lawyer will not represent Client on any appeal, or in any proceedings designed to execute on the judgment, without such additional compensation as may be agreed upon in a separate Agreement.

3.    CLIENT. The lawyer is representing the Client _________ only in this matter. It is understood by Client and any third party who may be assisting Client financially, emotionally or otherwise in this matter, that lawyer’s duty is to act in the best interest of the Client and lawyer cannot share information about Client’s case with anyone other than Client without express permission. 

4.    RESPONSIBILITIES OF THE PARTIES. Lawyer will provide those legal services reasonably required to represent Client in prosecuting the claims described in Paragraph 2. Client agrees to appear at all legal proceedings (including depositions, hearings including but not limited to trial) when Lawyer deems it necessary.  Client further agrees to be truthful with and to generally cooperate fully with Lawyer in all matters related to the preparation and presentation of Client’s claims (including but not limited to interrogation, written discovery, trial preparation, client interview) and to keep Lawyer informed of any information or developments which may come to Client’s attention.  Further, while it is impossible to predict the course of a representation, it may be important for Lawyer to contact Client immediately, or upon short notice, to confer with Client regarding the status of Client’s case. An inability to do so may result in Client’s case being prejudiced and detrimentally affect the outcome of the case. Accordingly, Client agrees to keep Lawyer informed of Client’s current address, phone number and whereabouts.   If Client leaves town, for example, to travel on business or vacation, Client agrees to notify Lawyer before leaving of the expected duration of the trip and how Client may be contacted in the meantime.  

5.    DEPOSIT (ADVANCED FEE). Client agrees to pay Lawyer an initial deposit (advanced fee) of $______, to be returned with this signed Agreement. Lawyer will hold this initial deposit (advanced fee) in a trust account. Client hereby authorizes Lawyer to use that deposit to pay the costs and other expenses incurred under this Agreement.  

       When Client’s deposit (advanced fee) is exhausted, Lawyer reserves the right to demand further deposits (advanced fees). Once a trial or arbitration date is set, Lawyer will require Client to pay all sums then owing, and to deposit the costs Lawyers estimates will be incurred in preparing for and completing the trial or arbitration, as well as the jury fees, court costs or arbitration fees likely to be assessed. Those sums may exceed the deposit (advanced fee).  

       Client agrees to pay all deposits (advanced fees) required under this Agreement within ______ days of Lawyer’s demand. Any deposit (advanced fee) that is unused at the conclusion of Lawyer’s services will be refunded.  

6.    LEGAL FEES AND BILLING PRACTICES. Lawyer will only be compensated for legal services rendered if a recovery is obtained for Client. If no recovery is obtained, Client will be obligated to pay only for costs and expenses, as described in Paragraph 7.

ALTERNATE ONE

The fee to be paid will be a percentage of the “gross recovery,” depending on the stages at which settlement or judgment is reached. The term “gross recovery” means the total of all amounts received by settlement, arbitration award or judgment, including any award of lawyer’s fees. The fee will be calculated before the deduction of any costs and expenses as set forth in Paragraph 7, and the costs and expenses will remain the responsibility of Client to be paid from the portion of any amounts received by Client after deduction of the fee. 

Upon conclusion of the matter, Lawyer will provide Client with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to Client and the method by which the remittance was calculated. 

 

 

ALTERNATE TWO

The fee to be paid will be a percentage of the “net recovery,” depending on the stage at which settlement or judgment is reached. The term “net recovery” means: 1) the total of all amounts received by settlement, arbitration award or judgment, including any award of lawyer’s fees; 2) minus all costs and expenses as set forth in Paragraph 7. 

Upon conclusion of the matter, Lawyer will provide Client with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to Client and the method by which the remittance was calculated. 

Lawyer’s fee shall be calculated as follows: 

(i) If the matter is resolved before filing a lawsuit or formal initiation of proceedings, then Lawyer’s fee will be _____ percent (____%) of the net recovery; 

(ii) If the matter is resolved prior to days before the date initially set for the trial or arbitration of the matter then Lawyer’s fee will be _____ percent (____%) of the net recovery; and 

(iii) If the matter is resolved after the times set forth in (i) and (ii), above, then Lawyer’s fee will be _____ percent (____%) of the net recovery. 

In the event of Lawyer’s discharge or withdrawal for cause as provided in Paragraph 12, Client agrees that, upon payment of the settlement, arbitration award or judgment in Client’s favor in this matter, Lawyer shall be entitled to be paid by Client a reasonable fee for the legal services provided the extent to which Lawyer’s services have contributed to result obtained. Such fee shall be determined by considering the following factors: 

7.    COSTS AND EXPENSES 

Lawyer will incur various costs and expenses in performing legal services under this Agreement. Client agrees to pay for all costs and expenses paid or owed by Client in connection with this matter, or which have been advanced by Lawyer on Client’s behalf and which have not been previously paid or reimbursed to Lawyer. Costs and expenses commonly include court fees, jury fees, service of process charges, court and deposition reporters’ fees, long distance telephone charges, messenger and other delivery fees, postage, photocopying and other reproduction costs, travel costs including parking, mileage, transportation, meals and hotel costs, investigation expenses and consultants’ fees and other similar items. Except for the items listed below, all costs and expenses will be charged at Lawyer’s cost. 

 

In-office photocopying __________ /page

Facsimile charges __________ /page 

Mileage __________ /mile 

Other: __________________________________                                                                             

 

ALTERNATE ONE

Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants, or investigators. Client agrees to pay such fees and charges. Lawyer will consult with client on the selection of any expert witnesses, consultants, etc., to be hired and their charges. 

Additionally, Client understands that if the matter proceeds to court action or arbitration, Client may be required to pay fees and/or costs to other parties in the action. Any such payment will be entirely the responsibility of Client. 

ALTERNATE TWO

Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants, or investigators. Lawyer will select, in consultation with client, any expert witnesses, consultants or investigators to be hired and Client will be informed of persons chosen and their charges. 

Client authorizes Lawyer to incur all reasonable costs and to hire any investigators, consultants, or expert witnesses reasonably necessary in Lawyer’s judgment unless one or both of the clauses below are initialed by Lawyer. 

Lawyer shall obtain Client’s consent before incurring any costs in excess or $______. 

Lawyer shall obtain Client’s consent before retaining outside investigators, consultants, or expert witnesses. 

If an award of fees and/or costs is sought on Client’s behalf in this action, Client understands that the amount which the court may order as fees and/or costs is the amount the court believes the party is entitled to recover, and does not determine what fees and/or costs Lawyer is entitled to charge its clients or that only the fees and/or costs which were allowed were reasonable.  Client agrees that, whether or not lawyer’s fees or costs are awarded by the court in Client’s case, Client will remain responsible for the payment, in full, of all lawyer’s fees and costs in accordance with this Agreement.

8.    BILLING STATEMENTS. Lawyer will send Client periodic billing statements for costs and expenses incurred in connection with this matter. Each statement is to be paid in full within ____ days of the date of such statement.  

9.    DISCHARGE AND WITHDRAWAL. Client may discharge Lawyer at any time, upon written notice to Lawyer. Lawyer may withdraw from representation of Client (a) with Client’s consent, (b) upon court approval, or (c) if no court action has been filed, for good cause and upon reasonable notice to Client. Good cause includes Client’s breach of this Agreement, refusal to cooperate with Lawyer or to follow Lawyer’s advice on a material matter or any fact or circumstance that would render Lawyer’s continuing representation unlawful or unethical. 

Notwithstanding Lawyer’s withdrawal or Client’s notice of discharge, and without regard to the reasons for the withdrawal or discharge, Client will remain obligated to pay Lawyer for all costs incurred prior to the termination. In the event that there is any recovery obtained by Client after conclusion of Lawyer’s services, Client remains obligated to pay Lawyer for the reasonable value of all services rendered from the effective date of this Agreement to the date of discharge.

Lawyer will maintain Client’s file for ____ years after this matter is concluded. Client may request the file at any time during, upon conclusion of, or after conclusion of, this matter. ____ years after the conclusion of this matter, the file may be destroyed without further notice to Client. 

10.  DISCLAIMER OF GUARANTEE AND ESTIMATES. Nothing in this Agreement and nothing in Lawyer’s statements to Client will be construed as a promise or guarantee about the outcome of the matter. Lawyer makes no such promises or guarantees. Lawyer’s comments about the outcome of the matter are expressions of opinion only. Client acknowledges that Lawyer has made no promise or guarantees about the outcome. 

11.  NEGOTIABILITY OF FEES. The rates set forth are not set by law, but are negotiable between a lawyer and client.

12.                         APPROVAL NECESSARY FOR SETTLEMENT. Lawyer will not make any settlement or compromise of any nature of any of Client’s claims without Client’s prior approval. Client has the absolute right to accept or reject any settlement. Client agrees to seriously consider any settlement offer Lawyer recommends before making a decision to accept or reject such offer. Client agrees not to make any settlement or compromise of any nature of any of Client’s claims without prior notice to Lawyer.  

13.  LIMITATION OF REPRESENTATION. Lawyer represents Client only on the matter described in Paragraph 2 (Scope of Services). Lawyer’s representation does not include independent or related matters that arise, including, among other things, claims for property damage, worker’s compensation disputes with health care providers about the amount owed for services, or claims for reimbursement (subrogation) by any insurance company for benefits paid under an insurance policy.

In the event there is a dispute between Client and a third party regarding any amounts allegedly owed by Client to the third party and there is a colorable claim to a lien on any proceeds in Lawyer’s possession by the third party, Lawyer will interplead those proceeds to the court for resolution of the dispute, if Client and the third party are unable to resolve the dispute amicably after a reasonable amount of time.

This Agreement does not include defending Client against, or representing Client in any claims that may be asserted against Client as a cross-claim or counter-claim in Client’s case. This Agreement does not apply to any other legal matters.  If any such matters arise later, Lawyer and Client will either negotiate a separate Agreement if Client and Lawyer agree that Lawyer will person such additional legal work or Client engage separate counsel with respect to cross-claims or counter-claims or additional legal work.

Client may have other possible causes of action arising from the facts and circumstances giving rise to this representation. As Lawyer does not represent Client on these other possible claims, Client should seek independent representation if Client wishes to pursue a remedy. Delay or failure to do so may result in Client being barred by a statute of limitations from being able to recover under these other causes of action.

14.                         CONCLUSION OF SERVICES. When Lawyer’s services conclude, all previously approved costs and expenses will immediately become due and payable. Lawyer is authorized to use any funds held in Lawyer’s trust account as a deposit (advanced fee) against costs to apply to such unpaid costs and expenses. After Lawyer’s services conclude, upon request, Client’s file and property will be delivered to Client, whether or not Client has paid any fees and/or costs owed to Lawyer. Client understands that to the limited extent Lawyer has paid out-of-pocket expenses for items, which have not yet been reimbursed by Client, Lawyer may be reimbursed for that particular expense before releasing that item.

15.                         LIEN. Client hereby grants Lawyer a lien on any and all claims or causes of action that are the subject of Lawyer’s representation under this Agreement. Lawyer’s lien will be for any sums owing to Lawyer for any unpaid costs, or lawyer’s fees, at the conclusion of Lawyer’s services.  The lien will attach to any recovery Client may obtain, whether by arbitration award, judgment, settlement or otherwise.

16.                         RECEIPT OF PROCEEDS. All proceeds of Client’s case shall be deposited into Lawyer’s trust account for disbursement in accordance with the provisions of this Agreement. No disbursement may be made until the settlement/or recovery check has cleared the bank.

17.                         ENTIRE AGREEMENT. This Agreement contains the entire Agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the parties. 

18.  SEVERABILITY IN EVENT OF PARTIAL INVALIDITY. If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect. 

19.                         MODIFICATION BY SUBSEQUENT AGREEMENT. This Agreement may be modified by subsequent Agreement of the parties only by an instrument in writing signed by both of them or an oral agreement only to the extent that the parties carry it out. 

20.                         EFFECTIVE DATE. This Agreement will govern all legal services performed by Lawyer on behalf of Client commencing with the date Lawyer first performed services. The date at the beginning of this Agreement is for reference only. Even if this Agreement does not take effect, Client will be obligated to pay Lawyer the reasonable value of any services Lawyer may have performed for Client. 

THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND AGREE TO THEM AS OF THE DATE LAWYER FIRST PROVIDED SERVICES. IF MORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLY AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. CLIENT SHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS AGREEMENT. 

 

DATED:   ________________________                          Client Name  ___________________________

                                                                             Address  _______________________________

                                                                             Phone  ___________________________

 

DATED:   _________________________                         LAW FIRM

                                                                             By  ___________________________

                                                                                                 [Name], Partner

 

NOTE: This material is intended as only an example, which you may use in developing your own form. It is not considered legal advice and as always, you will need to do your own research to make your own conclusions with regard to the laws and ethical opinions of your jurisdiction. In no event will ISBA Mutual Insurance Company be liable for any direct, indirect, or consequential damages resulting from the use of this material.

OTHER CLAUSES FOR CONSIDERATION IN FEE AGREEMENTS

 

1.    RESOLUTION OF A FEE DISPUTE 

       If a dispute concerning fees or expenses should occur during or at the conclusion of this matter, if the Lawyer and Client are not able to resolve the dispute, the parties agree to use the services offered by the Fee Dispute Resolution Program in their jurisdiction provided by the district bars of the Minnesota State Bar Association. The services provided by the fee dispute resolution program are offered at no cost to the Lawyer and Client unless either party wishes to be represented by counsel at their own expense. The Lawyer will inform the Client about how to start the proceedings and the differences between mediation and binding arbitration. 

       If Lawyer and Client agree to binding arbitration, they waive their right to have the fee dispute decided in Court. Binding arbitration does not absolve the Lawyer from liability or limit liability. 

       By initialing below, Client confirms that s/he has read and understands the options that are available should a fee dispute arise, and Lawyer and Client voluntarily agree to participate in the services offered by the Fee Dispute Resolution Program. 

       THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION, WHICH MAY BE ENFORCED BY THE PARTIES. 

                             _____________                                     ______________

                             (Client’s Initials)                 (Lawyer’s Initials) 

 

2.    INTEREST CLAUSE 

       If a billing statement balance is not paid in full when due, interest will be charged on any unpaid balance that remains past due beginning on the first day it is past due and continuing until paid at the rate of ____ percent (_____%) per annum (or the maximum lawful rate if less.) 

3.    REPLENISHING DEPOSIT (ADVANCED FEE) 

       To commence the representation, Client has provided [must provide] Lawyer with a $______ deposit (advanced fee). Lawyer will hold the deposit (advanced fee) in Lawyer’s trust account and apply it to each statement when rendered by Lawyer. Client will pay any additional balance due upon receipt of Lawyer’s statements each month and also will replenish the deposit (advanced fee) each month in the amount of all payments made to Lawyer from the deposit (advanced fee). At the conclusion of the matter, the deposit (advanced fee) will be applied to the final statement, in which event Client will be responsible for any amount due over and above the deposit (advanced fee) or be entitled to a refund of any amount remaining after the final statement is satisfied in full. 

4.    OTHER PAYOR CLAUSE-PERSONAL 

       Client has informed Lawyer that Client has arranged for [employer/relative-name and relationship] to be responsible for some or all of Lawyer’s fees which may become due under this Agreement. It is understood that should [name] fail for any reason to pay Lawyer’s statements as they become due, Client shall remain responsible for paying all Lawyer’s statements as they are rendered upon the billing and payment terms set forth in this Agreement. 

[Provide signature line for employer/relative in Agreement.] 

 

5.    “OTHER LAWYER” CLAUSE-CONTINGENCY 

       It is agreed that Lawyer will divide the lawyer’s fees in this case with another lawyer, [name], who will be compensated out of the fees which Lawyer otherwise will earn under this Agreement. The total fee to Client will not be increased. Lawyer _____________has agreed to assume joint responsibility for this matter. (This will require a second signature by the associated lawyer.) 

6.    SUCCESSOR LAWYER CLAUSE 

       Client agrees that a successor lawyer maybe appointed to temporarily assist with the case in the event of the lawyer’s illness, vacation, or other similar absences. In the event of Lawyer’s death, disability, impairment, or incapacity, the Client agrees that a successor lawyer can review the Client’s file for the limited purposes of protecting the Client’s rights and can assist with the closure of Lawyer’s law practice. Client maintains the right to select a Lawyer to represent him/her.