Overview

The Contingency Fee Agreement outlines the terms for legal representation in the Client’s claim. Under this agreement, the Law Firm receives payment only if the Client’s claim succeeds. Success is defined as either a favorable court decision or a settlement with the opponent. This arrangement allows the Client to access legal services without incurring upfront costs, as the Law Firm assumes the risk of non-payment if the case fails.

Fee Structure

The Contingency Fee Agreement specifies the basic charges for the legal services provided. These charges are calculated on an hourly basis, from the date of the agreement until its termination. The agreement includes disbursements, which are payments made by the Law Firm on behalf of the Client for various expenses, such as court fees, expert fees, and travel costs. Additionally, the agreement includes a success fee, which is an extra percentage of the basic charges payable to the Law Firm if the outcome is successful. This fee compensates the Law Firm for the risk taken and the delay in receiving payment.

Responsibilities

Both parties have clearly defined responsibilities under this agreement. The Law Firm commits to advising and representing the Client with reasonable skill and care. It acts in the Client’s best interests while fulfilling its duties to the court. This involves explaining the risks and benefits of taking legal action, advising on settlement offers, and providing information about the likely costs involved. The Client, in turn, must provide the Law Firm with adequate instructions, cooperate fully, and make timely payments for disbursements and other agreed-upon fees.

Termination and Cost Recovery

Either party can terminate the agreement by providing written notice. Specific conditions apply depending on whether the Client or the Law Firm initiates the termination. These conditions include paying basic charges and disbursements incurred up to the point of termination. The agreement also details the process for recovering costs from the opponent if the Client wins, specifying how to handle any payments received. This agreement balances the financial risks and responsibilities between the Client and the Law Firm, ensuring that both parties have clear expectations and protections throughout the legal process.
Here is another Agreement with a Law Firm concerning the defense of a filed Lawsuit.