Sample Form Partial Contingency Fee Agreement
This Sample Form Partial Contingency Fee Agreement is a legally binding agreement between the Client and the Attorney․ The Attorney agrees to represent the Client in the matter described below on a partial contingency fee basis․ This Agreement sets forth the terms and conditions of the agreement, including the fees, expenses, and termination provisions․
This Agreement is made and entered into as of [DATE] by and between [CLIENT NAME], residing at [CLIENT ADDRESS], hereinafter referred to as “Client,” and [ATTORNEY NAME], residing at [ATTORNEY ADDRESS], hereinafter referred to as “Attorney․”
WHEREAS, Client desires to retain Attorney to represent Client in the matter of [DESCRIPTION OF THE MATTER], hereinafter referred to as the “Matter”; and
WHEREAS, Attorney desires to represent Client in the Matter on a partial contingency fee basis;
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties agree as follows⁚
Introduction
A Partial Contingency Fee Agreement is a legal contract between a client and an attorney that outlines the terms of their relationship in a specific legal matter․ This type of agreement differs from a traditional contingency fee agreement in that the attorney’s fee is not solely dependent on the outcome of the case․ Instead, it combines a fixed hourly rate with a percentage-based payment contingent on the client’s recovery․ This approach provides a balanced and transparent arrangement, ensuring the attorney’s dedication while offering the client a degree of control over their financial obligations․
This Sample Form Partial Contingency Fee Agreement is designed to serve as a comprehensive guide for both clients and attorneys․ It covers essential elements such as the scope of legal representation, the calculation of fees, the allocation of expenses, and the procedures for termination of the agreement․ By utilizing this sample form, parties can ensure a clear understanding of their rights and responsibilities, fostering a collaborative and productive attorney-client relationship․
It is crucial to note that this sample form is not intended to be a substitute for legal advice․ Each legal matter is unique, and the specific terms of a Partial Contingency Fee Agreement should be tailored to the specific circumstances of the case․ It is highly recommended that both parties consult with legal counsel to review and modify this sample form to meet their individual needs and ensure a legally binding and enforceable agreement․
Components of a Partial Contingency Fee Agreement
A Partial Contingency Fee Agreement typically includes several key components to ensure clarity and transparency between the client and attorney․ These components provide a framework for the legal representation, outlining the responsibilities of both parties and establishing a clear understanding of the financial arrangements․ Below are some essential components commonly found in Partial Contingency Fee Agreements⁚
- Scope of Representation⁚ This section defines the specific legal services the attorney agrees to provide for the client․ It should clearly outline the specific tasks and responsibilities undertaken by the attorney, such as conducting legal research, drafting documents, negotiating settlements, and representing the client in court proceedings․
- Hourly Rate⁚ This component establishes the attorney’s hourly rate for their services․ It is essential to specify the applicable hourly rate for different types of legal work, such as research, writing, and courtroom appearances․
- Contingency Fee Percentage⁚ This section defines the percentage of the client’s recovery that the attorney will receive as a contingency fee․ It should clarify the specific events that trigger the contingency fee, such as a successful settlement or a favorable court judgment․
- Expenses⁚ This component outlines the allocation of expenses incurred during the legal representation․ It should specify which expenses are the responsibility of the client and which are the responsibility of the attorney․ Examples of expenses include court filing fees, expert witness fees, and travel costs․
- Payment Schedule⁚ This section details the payment schedule for the attorney’s services․ It should clarify the payment terms, such as the frequency of payments, the methods of payment, and any applicable deadlines․
- Termination Provisions⁚ This component outlines the procedures for terminating the agreement․ It should specify the grounds for termination, such as client dissatisfaction or attorney withdrawal, and the process for resolving any outstanding fees or expenses․
The specific components and details of a Partial Contingency Fee Agreement may vary depending on the nature of the legal matter, the jurisdiction, and the agreement between the client and attorney․ It is essential to consult with legal counsel to ensure that the agreement accurately reflects the specific circumstances of the case and adheres to all applicable legal requirements․
Calculating Fees and Expenses
Calculating the fees and expenses associated with a Partial Contingency Fee Agreement requires a clear understanding of the specific terms outlined in the agreement․ The calculation process involves combining the fixed hourly rate with the contingent fee percentage, ensuring a transparent and fair compensation structure for both the client and the attorney․
Hourly Rate Calculation⁚ The attorney’s fees based on the hourly rate are calculated by multiplying the attorney’s hourly rate by the number of hours spent on the legal matter․ For instance, if the attorney’s hourly rate is $300 and they spend 20 hours working on the case, the total hourly fee would be $6,000 (300 x 20)․
Contingency Fee Calculation⁚ The contingency fee is calculated as a percentage of the client’s net recovery․ The net recovery is the total amount recovered by the client, minus any expenses incurred by the attorney or the client․ For example, if the client recovers $100,000 and the contingency fee is 30%, the attorney’s contingency fee would be $30,000 (100,000 x 0․30)․
Expense Allocation⁚ The agreement should clearly specify which expenses are the responsibility of the client and which are the responsibility of the attorney․ Expenses incurred by the attorney, such as court filing fees, expert witness fees, and travel costs, may be deducted from the client’s recovery before calculating the contingency fee․ Expenses incurred by the client, such as medical expenses or lost wages, are generally not deducted from the client’s recovery․
Total Fees and Expenses⁚ The total fees and expenses are calculated by adding the hourly fees, the contingency fee, and any reimbursable expenses․ It is essential to ensure that the agreement specifies the method for calculating and allocating expenses, providing transparency and fairness in the financial arrangements․
The specific terms of the agreement, including the hourly rate, contingency fee percentage, and expense allocation, should be clearly defined and agreed upon by both parties․ It is highly recommended to consult with legal counsel to ensure that the agreement accurately reflects the specific circumstances of the case and adheres to all applicable legal requirements․
Termination and Payment
The termination and payment provisions of a Partial Contingency Fee Agreement outline the conditions under which the attorney-client relationship may end and the procedures for settling any outstanding fees or expenses․ These provisions are essential for ensuring a smooth and fair transition should the agreement be terminated, protecting the interests of both parties․
Termination⁚ The agreement should specify the grounds for termination, which may include client dissatisfaction, attorney withdrawal, or the successful resolution of the legal matter․ It is important to define the process for terminating the agreement, including any required written notice periods and the procedures for resolving any disputes that may arise․
Payment Upon Termination⁚ The agreement should outline the payment obligations of both parties upon termination․ If the agreement is terminated before the successful resolution of the legal matter, the client may be responsible for paying the attorney’s hourly fees for services rendered up to the date of termination․ Additionally, the client may be responsible for reimbursing the attorney for any reasonable and documented expenses incurred․
Payment Upon Successful Resolution⁚ If the agreement is terminated following the successful resolution of the legal matter, the client will be responsible for paying the attorney’s hourly fees and the contingency fee, as outlined in the agreement․ The attorney may also be entitled to reimbursement for any reasonable and documented expenses incurred․
Dispute Resolution⁚ The agreement should include provisions for resolving any disputes that may arise regarding fees, expenses, or the termination of the agreement․ This may involve binding arbitration, mediation, or litigation in a court of law․
The specific terms of the termination and payment provisions should be carefully considered and agreed upon by both parties․ It is highly recommended to consult with legal counsel to ensure that the agreement is clear, comprehensive, and legally enforceable․
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