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Contingency Fee Agreement

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CONTINGENCY FEE AGREEMENT WITH AN ATTORNEY OR LAW FIRM

AGREEMENT made by and between of

, referred to as "Client," and of

, referred to as "attorneys."

The parties agree as follows:

I.
STATEMENT AND SUBJECT OF EMPLOYMENT

Client retains and employs attorneys to prosecute a claim of wrongful termination in connection with damages Client suffered by

Client empowers attorneys to negotiate a settlement of the above-stated claim and to file such legal action as may be advisable in attorneys' judgment.

II.
ATTORNEYS' FEES

Client shall pay to attorneys, as attorney fees for the representation as provided in this agreement,

per cent of the net recovery in the above-described claim if the matter can be settled out of court without the necessity of a trial, per cent of the net recovery if the matter is resolved by a trial in the appropriate court in and per cent of the net recovery if the matter is resolved after any appeal to the Supreme Court of the State of .

III.
COSTS AND OTHER EXPENSES

Reasonable costs, necessary disbursements, and reasonable travel incurred by attorneys in advancing client's cause may be advanced by attorneys and shall be paid by the Client on a

basis. Such costs shall include, but not be limited to, deposition costs, use of attorneys personal automobile (at per mile), and expert witness fees, if any.

IV.
ATTORNEYS' LIEN

Attorneys are given a lien on the above-stated claim or cause of action, on any sum recovered by way of settlement, and on any judgment that may be recovered, for the sum and share mentioned above, as attorneys' fee; and attorneys shall have all general, possessory or retaining liens, and all special or charging liens known to the common law. Computation of the amount of the lien will be made after deducting from the amount of recovery and returning to attorneys any costs or other expenses advanced by attorneys, as provided above.

V.
EMPLOYMENT OF EXPERTS AND INVESTIGATORS

Attorneys may, in their sole discretion, employ one or more expert witnesses. All such experts shall report exclusively to attorneys. Fees charged by such expert witnesses may be advanced by attorneys and shall be paid by the Client on a basis.

VI.
ASSOCIATE COUNSEL

Attorneys, in their sole discretion, may employ associate counsel to assist attorneys in prosecuting the client's claim, at attorneys' expense.

VII.
RETENTION OF ATTORNEYS' FEES AND
ADVANCED COSTS FROM SETTLEMENT PROCEEDS

Attorneys may receive any settlement or judgment amount and may retain from such amount the percentage attorneys' fee pursuant to Section II of this agreement, as well as advanced costs.

VIII.
SUBSTITUTION OR DISCHARGE OF ATTORNEYS

Attorneys shall be entitled to attorneys' full contingent share of any settlement of or judgment on the claim for prosecution of which attorneys are retained even though client discharges attorneys or obtains a substitution for attorneys before such settlement is made or judgment is had.

IX.
WITHDRAWAL OF ATTORNEYS

Attorneys may withdraw from client's representation at any time, on reasonable notice to client, provided that in the event of such withdrawal attorneys shall be entitled to no fee pursuant to Section II of this agreement. However, attorneys shall remain entitled to reimbursement for any advances made to client under Sections III and V of this agreement.

X.
COMPENSATION IN EVENT OF SETTLEMENT BY CLIENT

If client settles client's above-stated claim or cause of action without the consent of attorneys, client will pay to attorneys the attorneys' fees computed in accordance with the terms of this agreement and based on the final recovery received by client in settlement, and client will reimburse attorneys for all advances made under Sections III and V of this agreement.

XI.
FAVORABLE OUTCOME NOT WARRANTED

Attorneys make no warranties or representations to client concerning the successful termination of client's claim or the favorable outcome of any legal action that may be filed, and attorneys do not warrant or guarantee that attorneys will obtain reimbursement for client of any

of client's costs or expenses out of which client's claim arises. All statements of attorneys on these matters are statements of opinion only.

XII.
POWER OF ATTORNEY TO EXECUTE DOCUMENTS

Client gives attorneys a power of attorney to execute all documents connected with the claim for the prosecution of which attorneys are retained, including pleadings, dismissal, orders, and all other court documents that client could properly execute.

XIII.
NOTICE

Any notice required or contemplated under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended, or if delivered at or sent by registered or certified mail to the business address of the person for whom it is intended, as specified in this agreement.

XIV.
LAW TO GOVERN CONTRACT

It is agreed that this agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

XV.
ENTIRE AGREEMENT

Any modification of this agreement or additional obligation assumed by either party in connection with this client shall be binding only if evidenced in writing signed by each party or an authorized representative of each party.

IN WITNESS WHEREOF, each party to this agreement has caused it to be executed effective the day of , 20

CLIENT

By: ATTORNEY

1

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What a Contingency Fee Agreement Is

A Contingency Fee Agreement is a contract between a client and a lawyer (or firm) where the attorney’s fee is payable only if the case succeeds or achieves a specified recovery. The agreement sets the contingency percentage or fee formula, allocates costs and disbursements, explains how expenses will be handled, and records termination and settlement procedures. It also identifies scope of representation, client responsibilities, and dispute-resolution terms. These agreements are common in personal injury, wrongful termination, and certain commercial recovery matters where clients lack or prefer not to pay hourly fees.

Why Parties Use a Contingency Fee Agreement

A contingency arrangement reduces upfront cost for the client, aligns the attorney’s incentive with case outcome, and clarifies distribution of recoveries and costs. For attorneys it manages client expectations and documents fee calculations and responsibilities.

Why Parties Use a Contingency Fee Agreement

Who commonly completes this agreement

Typical users include plaintiffs, law firms, and claims administrators who need a written fee allocation before litigation or settlement.

  • Individual plaintiffs pursuing damages who cannot or choose not to pay hourly legal fees up front.
  • Plaintiffs’ law firms documenting terms, percentage splits, and allocation of costs for contingency cases.
  • Claims administrators or insurers verifying fee structure before disbursing settlement funds.

Core elements you should expect to see

A professional Contingency Fee Agreement bundles fee formula, expense allocation, scope, and closing mechanics to reduce later disputes and ensure enforceability.

Fee formula

Specifies percentage or staged percentages (e.g., 33% pre-trial, 40% at trial) and how fees are calculated from gross or net recovery.

Costs allocation

Explains which litigation costs (filing fees, expert fees, deposition costs) are advanced by counsel and whether they are deducted before or after fee calculation.

Scope of work

Defines legal services included (appeals, enforcement) and any excluded work that would require separate billing or new agreement.

Client duties

Records client cooperation obligations, truthful disclosures, and consequences for failing to assist in prosecution or defense of the matter.

Settlement process

Describes approval rights, signer authority, distribution order, lien subordination, and how settlement funds are disbursed.

Termination

Sets out withdrawal, fee on termination, audit rights, and resolution paths for fee disputes including arbitration or court review.

Step-by-step: completing the agreement

Follow these steps in order to produce a clear, enforceable Contingency Fee Agreement.

  • 01
    Identify parties: Enter full legal names and capacities for all parties.
  • 02
    Define case scope: Describe the legal matter and services included.
  • 03
    Set fee terms: Specify percentages, triggers, and timing for fee calculation.
  • 04
    Sign and date: Collect signatures and record the effective date.

Typical lifecycle from engagement to settlement

A contingency case moves from intake to resolution with clear touchpoints for fee calculation, expenses, and disbursement.

  • Engagement: Client signs agreement; representation begins.
  • Litigation & costs: Counsel advances costs; client updates file.
  • Settlement or verdict: Recovery is obtained and reported.
  • Disbursement: Fees and costs are paid according to the agreement.

Digital workflow settings to capture key approvals

Configure your e-signature workflow to collect required identification, consent, and evidence of signature attribution.

Field Configuration
Signer Authentication Email plus optional SMS code or ID verification
Signature Order Set signer roles and required sequence
Required Attachments Upload client ID, retainer receipts, or exhibits
Audit Trail Enable IP, timestamp, and action logging

Requirements for electronic completion and storage

Ensure your platform supports ESIGN/UETA compliance, secure storage, and an auditable signature trail.

  • Authentication: Email, SMS, or KBA as needed
  • Security: TLS and AES-256 encryption
  • Audit Trail: IP, timestamp, and activity log

Timelines, deadlines, and expected processing steps

Track key calendar events around signing, notice periods, settlement distribution, and statute of limitations impacts related to the underlying claim.

Client signature deadline:

Execute before filing or within intake period to preserve fee terms.

Notice before settlement:

Provide required client or lienholder notices per agreement schedules.

Distribution timing:

Set a clear date or condition for funds disbursement after settlement.

Appeal window:

Specify how fees apply during appeal and who controls appeal decisions.

Statute of limitations effect:

Record dates affecting preservation of the underlying claim.

Common mistakes to avoid

  • Leaving fee language vague about whether percentages apply to gross or net recovery causes disputes and unexpected client complaints.
  • Failing to state how costs are advanced and repaid can produce conflicting interpretations during final accounting and disbursement.
  • Not specifying signatory authority for corporate or guardian clients risks invalid signatures and delayed settlements.
  • Missing required consumer disclosures for electronic consent in consumer-facing matters can jeopardize enforceability under ESIGN.

Risks and potential consequences

Unenforceable fee: Client may challenge fee
Bar discipline: Improper fee splits risk sanctions
Malpractice exposure: Missed deadlines increase liability
Delayed payment: Settlement holdbacks reduce cash flow
Tax reporting issues: Incorrect reporting triggers penalties
Lien conflicts: Unresolved liens complicate distribution

Comparing common eSignature plans for signing contingency agreements

Simple vendor comparison focusing on starting price, trial availability, bulk send capability, audit trail, HIPAA support, and envelope limits for high-volume signing.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Contingency Fee Agreements

Answers to common questions about enforceability, electronic signing, required disclosures, and what to do if a party changes their mind.


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