A contingency fee agreement is a type of legal agreement between a client and a lawyer. This agreement specifies that the lawyer`s fee is contingent on the outcome of the case. This means that the lawyer only gets paid if the client wins the case or reaches a settlement with the defendant.
Contingency fee agreements are popular in many different types of legal cases, including personal injury cases, medical malpractice cases, and employment disputes. In these cases, the lawyer may be able to take a percentage of the settlement or damages awarded to the client. This can be a huge incentive for lawyers to work hard and win the case for their clients.
Here is an example of a contingency fee agreement:
BETWEEN [CLIENT NAME], HEREINAFTER REFERRED TO AS „CLIENT,“ AND [LAW FIRM NAME], HEREINAFTER REFERRED TO AS „LAWYER.“
WHEREAS, the Client wishes to retain the services of the Lawyer to provide legal representation in [CASE TYPE], and
WHEREAS, the Lawyer agrees to provide such representation on a contingency fee basis,
IT IS HEREBY AGREED AS FOLLOWS:
1. The Lawyer agrees to represent the Client in the [CASE TYPE] matter described above.
2. The Client agrees to pay the Lawyer a percentage of any amount recovered in the case, as follows:
_____ % if the case settles before trial;
_____ % if the case goes to trial and is successful; or
_____ % if the case goes to trial and is unsuccessful.
3. The Client agrees to pay all expenses associated with the case, including but not limited to court fees, witness fees, and expert fees.
4. The Lawyer agrees that if the Client does not recover any money in the case, the Lawyer will not receive any fee or reimbursement for expenses.
5. The Lawyer agrees to provide the Client with a written statement of all fees and expenses incurred in the case upon request.
6. This agreement shall be binding upon the Client and the Lawyer, and their respective heirs, executors, administrators, successors, and assigns.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written.
[LAW FIRM NAME]:
Approved as to form:
As you can see from the example above, a contingency fee agreement can provide a great deal of flexibility for both the client and the lawyer. It allows clients to receive legal representation without paying upfront fees, and it incentivizes lawyers to work hard and win the case for their clients. Contingency fee agreements are a valuable tool for clients and lawyers alike, and they play an important role in the legal system.