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Contingency Fee Agreement with Attorney

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CONTINGENCY FEE AGREEMENT WITH AN ATTORNEY OR LAW FIRM

AGREEMENT made by and between of (city, state), referred to as "Client," and of (city, state), 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 (general description and date of claim). 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.

XIII. 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.

XIV. 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.

XV. 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 .

XVI. 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

By:

Enter text✕

What a Contingency Fee Agreement with Attorney Covers

A Contingency Fee Agreement with Attorney is a written contract where an attorney's payment depends on the client's recovery in a case. It sets the attorney's percentage, defines covered costs and expenses, explains what counts as a recovery, and describes how the fee is calculated and distributed after settlement or judgment. These agreements are common in personal injury, medical malpractice, certain employment, and other claims where clients do not pay hourly fees initially. A clear, signed contingency contract reduces disputes and explains client and attorney obligations throughout the matter.

Why a Clear Contingency Fee Agreement Matters

A well-drafted contingency agreement protects both client and attorney by documenting fee rates, expense allocation, case scope, and termination rights. It reduces later disputes over recovery splits and meets many state bar disclosure requirements while creating a clear record of consent and expectations.

Why a Clear Contingency Fee Agreement Matters

Who Typically Uses a Contingency Fee Agreement

Common users include plaintiff-side law firms and clients pursuing damages-based claims who need conditional billing arrangements.

  • Plaintiffs in tort and injury cases seeking representation without upfront hourly payments.
  • Solo and boutique law firms specializing in contingency-based practice areas.
  • Referral or co-counsel arrangements requiring division of contingent fees.

The agreement also serves in-house counsel and referral attorneys who document fee divisions and client consent when claims are delegated.

Primary Signatories and Their Roles

Client

The individual or entity who hires the attorney under the contingency arrangement. The client must sign to demonstrate informed consent to the fee percentage, expense deductions, and any potential fee division with other counsel.

Attorney

The law firm or attorney who agrees to represent the client on a contingency basis. The attorney’s signature confirms acceptance of the fee structure, scope of representation, and the firm’s duty to pursue the claim diligently.

Key Components to Include in the Agreement

A professional Contingency Fee Agreement with Attorney should list the fee formula, expense handling, scope of representation, client duties, termination and withdrawal rules, and dispute resolution. Clear, unambiguous language reduces misunderstanding and supports enforceability under state ethics rules.

Fee Percentage

Specify the exact percentage or sliding scale, whether gross or net recovery, and how it changes at trial, appeal, or after settlement.

Covered Costs

List which costs (filing fees, expert fees, deposition costs) the client reimburses and whether they are deducted before or after the attorney’s percentage.

Scope of Work

Describe the claims, causes of action, and phases covered. Note excluded matters that require a new agreement.

Client Obligations

Include duties such as cooperation, providing documents, attending medical exams, and promptly reviewing settlement offers.

Termination Rights

State how either party may end representation and the effect on fees, expenses, and any lien for reasonable value of services.

Dispute Resolution

Specify whether fee disputes go to arbitration, mediation, or court and the governing law for interpretation.

Step-by-Step: How to Complete the Agreement

Follow these ordered steps to prepare a clear, enforceable contingency agreement that documents client consent and the fee structure.

  • 01
    Intake and Facts: Collect client details, claim type, and expected recoverable items.
  • 02
    Draft Fee Terms: Specify percentages, expense treatment, and stage-based changes.
  • 03
    Review Disclosures: Provide required disclosures under state bar rules and ESIGN consumer notice if electronic.
  • 04
    Obtain Signatures: Have client and attorney sign and date; retain executed copies.

How Execution and Processing Typically Flow

Execution and post-signing steps should create a verifiable trail, show consent, and set expectations for settlement handling and distribution.

  • Document Preparation: Draft agreement and attach case exhibits or fee division letters.
  • Client Disclosure: Deliver written disclosures and confirm client understands terms.
  • Signature Capture: Capture signatures electronically or on paper with audit trail.
  • Record Retention: Store the signed agreement in client file and backup systems.

Configuring an Online Signing Workflow

Set up a consistent e-sign workflow to collect signatures, authentication, and post-signature records for each contingency agreement.

Field Configuration
Signature Field Required; collect signer name and date
Authentication Email + SMS code or ID check for higher assurance
Reminders Automated reminders after 3 and 7 days
Archive Location Secure folder with versioning and access controls

Technical Considerations for eSigning and Storage

Choose a platform that supports strong audit trails, secure storage, and optional advanced signer authentication to protect agreements.

  • Audit Trail: Capture timestamp, IP, and signer events
  • Security: TLS 1.2/1.3 in transit, AES-256 at rest
  • Integrations: Connectors for case management and cloud storage

Security and Compliance Essentials for the Agreement

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamped events and signer attribution
HIPAA: BAA required for protected health data
ESIGN/UETA: Meets ESIGN and UETA legal tests
Certifications: SOC 2 Type II and ISO 27001 available
Access Controls: Role-based access and SSO options

Timelines and Deadline Considerations

Track execution, signature capture, client rescission options, and statute of limitations for the underlying claim; timing affects enforceability and recovery calculation.

Execution Date:

The signed effective date governs rights and obligations

Client Review Window:

Allow reasonable time for client to review before signing

Settlement Accounting:

Specify when settlement funds are disbursed and statements issued

Statute of Limitations:

Varies by claim type and state; track filing deadlines carefully

Fee Dispute Deadline:

Bar complaint or arbitration timelines vary by jurisdiction

Key Case Milestones and Agreement-Related Stages

Milestones align document events with litigation phases; tracking them helps enforce fee terms and manage client expectations.

01

Initial Consultation

Client signs agreement after intake and preliminary case review

02

Investigation Phase

Attorney incurs costs and documents agreed expense handling

03

Filing/Complaint

Case filing triggers fee entitlement under many contingency terms

04

Settlement or Judgment

Calculate recovery, deduct costs, and distribute fee per agreement

Common Preparation Pitfalls to Avoid

  • Using vague language about 'reasonable expenses' without examples, which leads to disputes over deductibility and timing.
  • Failing to state whether the fee applies to gross or net recovery, causing confusion about expense deductions and client payout.
  • Not obtaining explicit client consent for fee division with co-counsel or referrals, exposing attorneys to ethics complaints.
  • Ignoring state bar disclosure rules or esign consumer consent requirements, which can render the agreement unenforceable.

Consequences of an Incorrect or Missing Agreement

Fee Forfeiture: State bar sanctions possible
Ethics Complaint: Disciplinary action risk
Client Lawsuit: Breach or unjust enrichment claims
Statute Issues: Missed filing windows
Recovery Delay: Slowed disbursement process
Tax Reporting: Incorrect 1099 treatment risk

Practical Examples of How Agreements Are Used

Two brief scenarios illustrate common contingency fee structures and how terms affect settlement accounting.

Personal Injury Matter

A client signs a 33% contingency on gross recovery after intake and medical record review.

  • The attorney advances $8,000 in expert and filing costs.
  • After a $150,000 settlement, the agreement lists expense reimbursement first, then calculates the attorney percentage, producing a clear post-disbursement statement for client review and tax reporting.

Employment Discrimination Case

A plaintiff and counsel agree to a sliding scale: 25% pre-suit, 33.33% at settlement, 40% after trial.

  • Costs are deducted after attorney fee.
  • The sliding scale clause clarifies incentive to resolve pre-trial while protecting counsel’s recovery if the case proceeds to verdict.

Practical Tips for Accurate and Efficient Completion

Follow these practices to reduce post-signature disputes and administrative overhead when using contingency agreements.

Use Clear Monetary Language
State percentages as decimals or fractions and specify gross versus net calculation rules to avoid ambiguity.
Document Expense Handling
List reimbursable costs with examples and explain timing for deductions and client accounting.
Record Client Consent
Capture explicit client consent to fee division or referral fees in writing and include signed acknowledgements.
Keep Templates
Use standardized templates with variable fields to maintain consistency and speed up intake processing.

eSignature Vendor Comparison for Executing Contingency Agreements

Compare core pricing and compliance features across common eSignature vendors; signNow appears first to match platform-first ordering requirements.

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
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Practical Answers

Common questions about enforceability, electronic signing, and corrections are answered with practical steps and legal references where applicable.


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