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Attorney Fee Agreement

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EMPLOYMENT CONTRACT

KNOW ALL MEN BY THESE PRESENTS, that I/we , the undersigned, hereinafter referred to as “Client”, retain and employ P.C., attorneys, hereinafter “Attorneys”, as my true and lawful attorneys in prosecuting and handling Client’s claim or claims for damages against and any and all persons, business entities, or other insurance companies or corporations who may be liable at law as a result of an injury (or death) or claim which occurred on or about the day of , 20, with exclusive right to prosecute; file suit; settle; adjust; or compromise the said claim or claims; to execute all documents pertaining thereto; to execute my/our name to such documents as they deem necessary; and to do all lawful things requisite for handling, prosecuting or resolving my/our claim or claims.

Client agrees that in consideration of the rendering of such services that Attorneys shall be entitled to receive a fee equal to forty percent (40%) of the total amount of all sums recovered, which includes money and/or the cost or present/fair market value of anything or any contract or right recovered or realized as part of the settlement, adjustment, compromise or verdict obtained on said claim or claims, plus reimbursement of all cost advances made by Attorneys.

In the event of an appeal to any Appellate Court by the opposing side or by my/our attorneys, Client agrees that Attorneys shall be entitled to a fee equal to forty-five percent (45%) of any gross recovery made on Clients behalf as their additional fee for handling such appeal, plus reimbursement of all cost advances made by them in the prosecution of Client’s claim or claims.

Client authorizes Attorneys to expend, advance, or incur all costs and expenses reasonably necessary in the prosecution of client’s claim, including costs and expenses for investigators, expert witnesses, other attorneys, research services, internet access and usage, data reporting services, depositions, court costs, medical records, pictures, exhibits, travel, preparation of transcripts for appeal, printing or binding of briefs, copying costs, telephone charges, fax charges, legal research charges, subpoenas, etc. Client agrees that all such costs and expenses shall be reimbursed to Attorneys by Client.

Client agrees that Attorneys, in their sole discretion, may associate other attorneys to assist Attorneys in prosecuting Client’s claim or to be co-counsel in pursuing Client’s claim. Client agrees to fully cooperate with and assist these attorneys in prosecuting such claim.

Attorneys agree to charge nothing for their professional services rendered in the prosecuting of this claim if there are no sums recovered.

Client agrees that Attorneys may withdraw from representation of Client in this claim at any time, on reasonable notice to Client.

If Client discharges Attorneys, then Client agrees to pay to Attorneys their full attorney’s fee plus reimbursement of all costs and expenses where such settlement or recovery is made without the assistance of substitute counsel. If Client discharges attorneys and obtains a recovery with the assistance of substitute counsel or if Attorneys withdraw from representing Client at any time, then Client agrees to pay Attorneys thirty-five percent (35%) of the total amount of all sums recovered, which includes money and/or the cost or present/fair market value of anything or any contract or right recovered or realized as part of the settlement, adjustment, compromise or verdict obtained on said claim or claims plus reimbursement of all expenses and costs incurred by Attorneys.

Client agrees that Attorneys shall not be required to submit or provide an itemization of the time expended in Client’s behalf in order to be entitled to the above stated attorney’s fee.

Client agrees that Attorneys shall have a lien against any settlement funds or money received from any judgment for attorneys’ fee, costs and expenses.

The fee due to said attorneys is to be determined by multiplying the appropriate percentage, as agreed to above, by the gross recovery. After the fee is calculated and the fee is subtracted from the gross recovery, the cost advances incurred by Attorneys are then deducted first and then any subrogated interest, liens, protected charges, Workmen’s Compensation or insurance liens are then to be deducted from the amount which remains.

If Attorneys must enforce any aspect of this contract in order to collect or obtain attorney’s fees, costs or expenses, and, if Attorneys are successful either wholly or in part in enforcement or collection, then Client agrees to pay to Attorneys a reasonable attorney’s fee and expenses incurred as a result of or in connection with such enforcement and Client further agrees that such attorney’s fee and expenses shall be in addition to or over and above any such amount owed to Attorneys for attorney’s fees and reimbursement of costs and expenses agreed to above.

If your case is referred to P.C. by another attorney, that referring attorney or law firm may be given a portion of the fee charged by Attorneys. This will not increase the overall attorney’s fee agreed to above.

In case any term or provision of this Employment Contract shall be held invalid, illegal or unenforceable, in whole or in part, neither the validity of the remaining part of such term or provision, nor the validity of any other term or provision of this Employment Contract, shall in any way be affected thereby, and in such event, this Employment Contract shall be deemed to be modified so as to be construed and in force to affect the terms thereof to the fullest extent possible.

I have been advised that, in accordance with Rule of Professional Conduct , my Attorneys will place any short term or nominal client funds of mine in an Interest On Lawyers Trust Account (‘IOLTA’), the interest of which is paid to the Civil Justice Foundation, which assists designated charities in .

I, the undersigned Client, do hereby acknowledge that I have read the Employment Contract, or have had it read to me, and I fully understand and agree to each and every term, provision and condition contained in it.

In witness whereof, I have signed it with my hand and seal on the day of , 20.

_______________________________ ____________________________________SEAL

Witness

Client

Telephone number

Social Security number

______________________________ ____________________________________SEAL

Witness

Client

Telephone number

Social Security number

Enter text✕

What an Attorney Fee Agreement Is and Why It Matters

An Attorney Fee Agreement is a written contract between an attorney or law firm and a client that sets out the scope of legal services, the method of fee calculation, billing and payment terms, retainer handling, expense reimbursement, and responsibilities of each party. It identifies whether fees are hourly, flat, or contingency, and explains how disputes over fees will be resolved. A signed fee agreement reduces misunderstandings, supports billing compliance and ethical review, and in many jurisdictions is required for contingency or complex representations.

Why a Clear Fee Agreement Protects Both Sides

A complete Attorney Fee Agreement clarifies expectations, documents consent to payment terms, and records responsibilities for fees and costs. When executed electronically, the agreement can meet ESIGN (15 U.S.C. ch. 96) and UETA standards provided parties demonstrate intent, consent, attribution, and retention capability.

Why a Clear Fee Agreement Protects Both Sides

Who Typically Prepares or Signs This Agreement

Typical users who prepare or sign Attorney Fee Agreements include law firm partners, solo practitioners, corporate counsel, and individual clients.

  • Law firms — partners or billing departments that set fee structure and billing rules.
  • Solo practitioners — clarify retainers, hourly rates, and contingency arrangements with clients.
  • Corporate counsel — negotiate outside counsel fees and involvement for specific matters.

Use plain language, explicit fee mechanics, and documented consent to reduce billing disputes and support enforceability in audits or fee challenges.

Primary Signatories and Their Roles

Lead Counsel

The Lead Counsel signs on behalf of the law firm, accepts fee arrangements, and is responsible for billing oversight, trust accounting, and compliance with ethical rules. Counsel should verify client identity, confirm fee disclosures, and ensure the agreement meets state bar requirements before finalizing.

Client Principal

The Client Principal authorizes the fee arrangement, confirms understanding of billing methods and reimburseable expenses, and provides necessary documentation for retainer and reimbursement. The client should retain an executed copy and request clarifications before signing to avoid later disputes.

Core Elements to Include in an Attorney Fee Agreement

Include precise contract elements that govern payment, scope, and dispute handling so the agreement is enforceable and ethically compliant.

Scope

Describe the services to be provided with sufficient detail, identify excluded tasks, and specify whether the agreement covers appeals, post-judgment work, or related matters to prevent scope disputes.

Fees

State the fee structure — hourly rate with billing increments, flat fee, or contingency percentage — and include calculation examples, triggers for fee changes, and conditions for fee review.

Retainer

Specify retainer amount, whether it is refundable or considered earned, how funds are held in trust, and conditions for replenishment or withdrawal.

Billing

Define billing cycle, invoice content, payment terms, late interest or collection costs, and the process for client disputes and corrections.

Expenses

List reimbursable costs, preapproval requirements for experts or vendors, caps if any, and how third-party disbursements will be invoiced.

Dispute Resolution

Identify governing law and venue, and state whether arbitration, mediation, or bar fee arbitration applies, including allocation of dispute-related costs.

Step-by-Step: From Drafting to Execution

Follow these steps to prepare, review, and finalize an Attorney Fee Agreement in a controlled sequence.

  • 01
    Draft Agreement: Describe scope, fee model, and key terms.
  • 02
    Review by Counsel: Attorney checks compliance with bar rules and conflicts.
  • 03
    Client Review: Client reads, asks questions, and approves terms.
  • 04
    Sign and Date: All parties sign and date; retain executed copy.

How to Configure an Online Fee-Agreement Workflow

Set up a template-driven workflow with conditional fields, signer authentication, and routing to match your firm’s processes.

Field Name and Configuration Guide How to set this field in the online workflow with visibility and validation rules.
Template Selection and Version Control Use a standardized template with tracked revisions, clause locking, and role-based edit permissions.
Conditional Fields and Visibility Rules Show contingency-specific fields only when contingency is selected to avoid confusion in other fee types.
Signer Authentication and Verification Methods Require email plus SMS OTP or knowledge-based authentication for higher-assurance client signatures.
Signing Order and Routing Rules Set sequential signing: attorney first, client second, custodian or billing third.

Where Signed Agreements Typically Go

Typical destinations and routing for signed Attorney Fee Agreements within client and firm workflows, including billing systems and matter files.

  • Client Copy: Provide the client with a PDF and retain the original executed copy.
  • Firm File: Store the executed agreement in the matter management system or secure document repository.
  • Billing System: Export fee terms to the billing system to initialize invoices and trust accounting entries.
  • Court or Regulator: File with a court or regulator only when rules require disclosure or court approval.

Technical Requirements for Electronic Signing

Digital signing and e-submission require compatible file formats, signer authentication, secure storage, and an auditable trail to meet ESIGN, UETA, and applicable bar rules.

  • Laws and Standards: ESIGN and UETA compliance required for legal effect.
  • File Formats: PDF and DOCX (PDF/A for archival) supported.
  • Integrations: Integrates with Salesforce, NetSuite, Google Workspace, and common systems.

eSignature Pricing and Features That Affect Fee Agreement Workflows

Compare vendor starting prices and core capabilities that impact Attorney Fee Agreement processes; signNow is listed first for baseline comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8 per user per month when billed annually $15 per user per month annual billing $14 per user per month annual billing $19 per user per month annual billing $15 per user per month annual billing
Free Trial 7-day free trial, no credit card required Trial options vary by vendor and plan Trial options vary by vendor and plan Trial options vary by vendor and plan Trial options vary by vendor and plan
Bulk Send Yes — available on premium plans for mass notices Available on many plans, enterprise features common Available on enterprise-focused tiers Yes — bulk send available on higher tiers Varies by plan and account type
Audit Trail Comprehensive audit trail with timestamps and IP addresses Comprehensive audit trail with timestamps and IP addresses Comprehensive audit trail with timestamps and IP addresses Audit trail included with signed documents Audit trail included with signed documents
HIPAA Compliant Yes — BAA available on applicable plans Yes — BAA available on eligible plans Yes — HIPAA support and BAA options No — HIPAA not offered by default No — HIPAA not offered by default
Envelope Cap No envelope cap; usage-based site license available Limits may apply: 100 envelopes per user per year in some plans Varies by plan and enterprise agreement Varies by plan and enterprise agreement Varies by plan and enterprise agreement

Key Timing and Billing Deadlines to Track

Monitor execution dates, retainer payments, billing cycles, and dispute windows to avoid missed deadlines or collection issues.

Execution Date:

Agreement takes effect on the Effective Date upon signature.

Retainer Payment:

Retainer usually due upon execution unless parties agree otherwise.

Billing Cycle:

Monthly statements are common; default payment terms are often net 30 days.

Dispute Window:

Clients should notify billing disputes within 30 days to preserve contest rights.

Record Retention Start:

Retention periods typically begin on the Effective Date of the agreement.

Common Mistakes to Avoid When Preparing a Fee Agreement

  • Vague scope descriptions that fail to list excluded services, which lead to billing disputes and client misunderstanding.
  • Unclear contingency language that omits percentages, costs treatment, or how settlement allocation affects the contingency calculation.
  • Failure to disclose retainers and whether funds are refundable, which can trigger bar complaints or client claims.
  • Incorrect signatory authority where a person signs without power, leading to challenges to enforceability and contract validity.

Consequences of an Incomplete or Incorrect Agreement

Unenforceable Terms: Unsigned or unclear fees risk unenforceability.
Bar Discipline: Noncompliance may trigger ethics investigation.
Billing Disputes: Client disputes can delay or reduce payment.
Notary Missing: Absence of notarization can affect affidavit use.
Tax Exposure: Incorrect reporting may trigger IRS penalties.
Retention Violations: Failure to retain records risks compliance fines.

Practical Examples of Electronic Fee Agreements in Use

Real-world examples show how electronic execution and integrations reduce turnaround and support compliance in fee agreements.

Martin Properties

Martin Properties digitized client agreements and fee schedules to avoid in-person signings and reduce turnaround time.

  • Mobile and offline signing supported for field agents.
  • I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently.

Xerox

A large services team integrated eSignature into its ERP to centralize fee agreements and reduce manual routing delays.

  • NetSuite integration simplified signature workflows across teams.
  • airSlate SignNow provides us with the flexibility needed to get the right signatures on the right documents, in the right formats, based on our integration with NetSuite.

FAQs and Troubleshooting for Attorney Fee Agreements

Answers to common questions about enforceability, notarization, electronic signing, and recordkeeping for Attorney Fee Agreements in the United States.


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