Can a contingency agreement be signed electronically?

Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when the signature demonstrates intent, parties consent to electronic records, attribution is documented, and the record can be retained and reproduced.

Does the client need a special disclosure for e-signing?

If the matter is consumer-facing, ESIGN requires a consumer disclosure and affirmative consent to receive electronic records, plus a way for the consumer to access the document in the chosen format.

Who pays litigation expenses if no recovery occurs?

The agreement must state whether counsel advances expenses and whether the client reimburses them on recovery; if the agreement is silent, state ethics and fee rules may govern allocation.

Are there limits on contingency percentages?

Some jurisdictions and practice areas impose reasonableness standards or caps; attorneys should follow state bar guidance and document fee calculations clearly to avoid ethics complaints.

What if the client's name is entered incorrectly?

Mismatched or incomplete names can delay settlement disbursements and bank processing; correct errors before execution and retain proof of identity for verification.

How long should I retain signed agreements?

Keep the signed agreement for at least the active representation period plus applicable federal minima (e.g., IRS 3 years) and industry-specific periods such as HIPAA six-year retention when PHI is involved.

Electronic Signature
Templates
Legal
Legal Contingency Fee Agreement

Legal Contingency Fee Agreement

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LEGAL CONTINGENCY FEE AGREEMENT

This Legal Contingency Fee Agreement ("Agreement") is made effective as of by and between Client Name: ("Client") and Attorney Name: ("Attorney").

RECITALS

WHEREAS, Client seeks legal representation in connection with the matter described as: and further described below; and

WHEREAS, Attorney represents that Attorney is duly licensed and authorized to practice law and has the competence and experience to prosecute and/or defend the claims identified in the matter; and

WHEREAS, the parties desire to set forth the terms under which Attorney will represent Client on a contingency-fee basis.

NOW, THEREFORE, in consideration of the mutual covenants set forth below, the parties agree as follows:

1. ENGAGEMENT; SCOPE OF REPRESENTATION

Client retains Attorney to provide legal services concerning the matter described as:

Matter description

Attorney shall have the exclusive authority to take legal action reasonably necessary to prosecute or defend the matter, subject to Client's right to make final decisions on settlement, as set forth in Section 5.

2. CONTINGENCY FEE; CALCULATION

As compensation for legal services, Client agrees to pay Attorney a contingency fee calculated as a percentage of the Gross Recovery as defined below. The contingency fee shall be:

For purposes of this Agreement, "Gross Recovery" means the total amount recovered by Client before deduction of costs, expenses, liens, or other encumbrances, whether recovered by settlement, judgment, binding arbitration award, or other means.

The contingency percentage set forth above shall be applied to Gross Recovery less statutory or contractual offsets required by law. If the parties agree to a different percentage for recovery occurring at different stages (for example, pre-litigation, post-filing, post-trial), those alternate percentages must be set forth herein:

Alternative fee stages and percentages (if any)

3. COSTS, EXPENSES AND ADVANCES

Client acknowledges that costs and expenses reasonably incurred by Attorney in connection with the matter (including, without limitation, filing fees, expert fees, deposition costs, copying, postage, travel, and trial exhibits) will be the responsibility of Client. Attorney may, at Attorney's discretion, advance such costs and expenses on Client's behalf.

Client agrees that all advanced costs and expenses are recoverable by Attorney from the Gross Recovery prior to or concurrently with calculation of the contingency fee, subject to any statutory or contractual priorities.

Attorney will advance costs and expenses:

Attorney may advance costs and expenses on Client's behalf (Client remains liable for such advances if there is no recovery).

4. DISBURSEMENT; ACCOUNTING

Upon receipt of any recovery, Attorney shall deduct reasonable and documented costs and expenses advanced and shall compute the contingency fee based on the Gross Recovery. Attorney shall provide Client with a written accounting showing the Gross Recovery, costs and expenses advanced or recovered, calculation of the contingency fee, and the net amount payable to Client.

5. SETTLEMENT AUTHORITY; ATTORNEY'S LIEN

Except as otherwise provided by law, Client shall make the final decision to accept or reject any settlement. Attorney may recommend settlement terms but may not settle the matter without Client's informed consent. Client acknowledges that Attorney may assert a charging lien, retaining lien, or other equitable lien against any recovery to secure payment of fees and costs under this Agreement.

Attorney's lien will attach to Client's cause of action and to any recovery obtained on behalf of Client, and Client agrees not to transfer or encumber the claim except with written notice to Attorney.

Client acknowledges Attorney's right to assert a lien against any recovery.

6. CLIENT COOPERATION

Client agrees to cooperate fully with Attorney, to provide truthful information and documents, to attend depositions, hearings, and trial as required, and to keep Attorney informed of Client's contact information. Client authorizes Attorney to obtain records and to take such steps as are reasonably necessary to represent Client effectively.

7. TERMINATION; FEES UPON TERMINATION

Either party may terminate this Agreement upon written notice to the other. If termination occurs and Client obtains a recovery thereafter, Attorney shall be entitled to a contingency fee as set forth in Section 2 measured by the Gross Recovery attributable to Attorney's work or as otherwise permitted by law. If Attorney withdraws for cause, Attorney shall be entitled to reasonable compensation for services performed to the date of termination, subject to applicable rules of professional conduct.

8. CONFLICTS; MULTIPLE CLIENTS

Attorney represents that, to Attorney's knowledge, no conflict of interest exists that would materially impair Attorney's representation of Client. Client acknowledges that Attorney may represent other clients, provided that such representation does not create a material conflict under applicable professional conduct rules.

9. CONFIDENTIALITY

Attorney shall maintain the confidentiality of Client communications to the extent required by law and professional obligations. Client authorizes Attorney to disclose information as reasonably necessary for litigation, settlement negotiations, or to comply with legal process.

10. NOTICES

All notices, communications, and invoices required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below or to such other address as either party designates in writing.

Client address for notices Client contact email Attorney address for notices Attorney contact email

11. AMENDMENTS; WAIVER; COUNTERPARTS

This Agreement may be amended only by a written instrument signed by both parties. No failure or delay by either party in exercising any right shall operate as a waiver of that right. This Agreement may be executed in counterparts, each of which shall be an original and together shall constitute one instrument.

12. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict-of-law principles. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect.

13. REPRESENTATIONS AND ATTESTATIONS

Each party represents and warrants that it has the full power and authority to enter into this Agreement and that the person signing on behalf of a party is authorized to bind that party.

14. MISCELLANEOUS PROVISIONS

If any payments to Client are subject to withholding or offset by operation of law, Attorney shall cooperate with Client to minimize such withholdings to the extent reasonably practicable. The parties agree to cooperate in good faith to resolve disputes regarding fee calculations and cost allocations prior to seeking judicial relief.

Client:

Print Name:

By (Signature):

Date:

Attorney:

Print Name:

By (Signature):

Date:

What a Legal Contingency Fee Agreement Is

A Legal Contingency Fee Agreement is a written contract between an attorney and a client that makes the lawyer's fee contingent on a successful recovery. The agreement typically sets a fee percentage or sliding scale, describes which recoveries are included, allocates responsibility for case expenses, and explains termination and dispute-resolution procedures. Contingency agreements reduce upfront cost for clients and align incentives, but must be clear on recoverable costs and client consent. Electronic execution is generally allowed under federal and state e-signature laws when the agreement meets ESIGN and UETA requirements and the parties consent to electronic records.

Why a Clear Contingency Agreement Matters

A well-drafted contingency agreement protects client and counsel expectations by defining fees, expenses, and triggers for payment, reducing later disputes and ethical risk. It also creates a clear basis for accounting and potential settlements or appeals.

Who Commonly Uses Contingency Fee Agreements

Contingency agreements are common in plaintiff-side litigation and select transactional matters where clients prefer no upfront fees.

Plaintiff law firms handling personal injury, employment, or consumer claims where recoveries determine payment.
Individual clients who cannot pay hourly fees and prefer fee exposure tied to results.
In-house counsel overseeing outside counsel engagements to align outcomes with corporate recovery goals.

Parties should confirm who signs on behalf of each side, whether a guardian or power of attorney is needed, and retain a signed copy for compliance and billing purposes.

Core Clauses to Include in the Agreement

A professional Legal Contingency Fee Agreement is concise but comprehensive: it states the fee calculus, scope, treatment of costs, client approvals, and exit terms to reduce ambiguity and ethical exposure.

Fee Percentage

Specify a fixed percentage or tiered scale for settlements, judgments, and appeals, and show examples of fee calculations to ensure client understanding.

Scope of Work

Define the claims, parties, and stages covered by the contingency arrangement, including appeals and enforcement actions when applicable.

Costs and Expenses

State whether litigation costs are advanced by counsel, how they are reimbursed, and whether they are deducted before or after the attorney fee.

Recovery Definition

Clarify what counts as recoverable funds—gross settlement, net judgment, structured payments, tax gross-up, or other offsets.

Termination Rights

Describe client and attorney termination procedures, effect on fees if terminated, and billing for services performed to date.

Dispute Resolution

Include governing law, choice of forum, and whether disputes over fees go to arbitration, mediation, or court.

Step-by-Step: Completing the Agreement

Follow these steps in order to create, review, and execute a legally effective contingency agreement.

01

Collect Client Data: Obtain full legal names, addresses, and ID details before drafting.
02

Draft Terms: Set fee percentage, expenses, scope, and termination language clearly.
03

Review with Client: Explain calculations, risks, and alternatives; document consent.
04

Execute and Store: Sign (wet or e-sign) and retain a dated copy in the client file.

How to Configure a Digital Contingency Agreement Workflow

When completing the agreement online, set up authentication, signature order, and retention before sending to the client.

Field	Configuration
Signing Order	Client first \| Attorney second
Authentication	Email + SMS code or ID verification
Notifications	Send reminders at 3 and 7 days
Record Retention	Store signed PDF and audit trail

Typical eSigning Flow for Contingency Agreements

Digital signing streamlines execution while preserving legal evidence when the workflow captures intent, consent, and an audit trail.

Upload Document: Prepare a final PDF or DOCX and upload to the platform.
Place Fields: Insert signature, date, and initial fields where required.
Send to Signer: Deliver by email link, SMS, or embedded signing portal.
Capture Audit Trail: Record timestamp, IP, and authentication method for evidence.

Technical Considerations for eSigning

Choose a platform that supports required authentication, audit trails, and file formats for evidentiary backing.

File Formats: PDF and DOCX widely supported
Integrations: CRM and document storage integrations available
Accessibility: WCAG 2.0 Level AA compatibility recommended

Verify the vendor's compliance posture for HIPAA, ESIGN/UETA, and any industry-specific regulations before transmitting sensitive client information.

Security and Compliance Elements to Verify

In-Transit Encryption: TLS 1.2/1.3

At-Rest Encryption: AES-256

HIPAA Support: BAA available when handling PHI

Audit Trail: Timestamp and IP logging

Access Controls: Role-based permissions

Certifications: SOC 2 Type II and ISO 27001

Common Preparation Errors to Avoid

Failing to specify whether the fee applies to gross or net recovery leads to calculation disputes and client complaints.
Not defining which costs are deductible and the timing of reimbursement can create unexpected client liabilities.
Using ambiguous language about the scope of representation risks later malpractice or ethical claims.
Accepting signatures without documented consent to electronic records may jeopardize enforceability under ESIGN and UETA.

Risks and Consequences of an Incorrect Agreement

Unenforceable Fee: Court may void or reduce fee

Ethics Sanction: State bar discipline risk

Client Litigation: Fee disputes and malpractice claims

Tax Exposure: Incorrect reporting of recoveries

Lost Evidence: Missing audit trail weakens enforcement

Regulatory Penalty: Noncompliance with consumer disclosure rules

Key Dates and Timing Considerations

Track execution, client cooling-off or revocation periods if applicable, statute-of-limitations impacts, and accounting deadlines to avoid adverse outcomes.

Execution Date:

Date on which signatures are captured and agreement becomes effective

Statute of Limitations:

Filing deadlines for claims must be checked before entering contingency arrangements

Expense Accounting:

Specify when costs are billed and how they are documented

Settlement Approval:

Allow time for client review and court approval if required

Record Retention:

Retain signed agreement per retention schedule and regulatory requirements

eSignature Vendor Comparison for Executing Agreements

Common criteria to evaluate include per-user pricing, trial availability, bulk send capability, audit trail features, HIPAA support, and envelope or session caps.

	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 trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Contingency Fee Agreements

Answers to common legal, procedural, and technical questions when preparing or e-signing a contingency fee agreement.

Need help? Contact support

Can a contingency agreement be signed electronically?
Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when the signature demonstrates intent, parties consent to electronic records, attribution is documented, and the record can be retained and reproduced.
Does the client need a special disclosure for e-signing?
If the matter is consumer-facing, ESIGN requires a consumer disclosure and affirmative consent to receive electronic records, plus a way for the consumer to access the document in the chosen format.
Who pays litigation expenses if no recovery occurs?
The agreement must state whether counsel advances expenses and whether the client reimburses them on recovery; if the agreement is silent, state ethics and fee rules may govern allocation.
Are there limits on contingency percentages?
Some jurisdictions and practice areas impose reasonableness standards or caps; attorneys should follow state bar guidance and document fee calculations clearly to avoid ethics complaints.
What if the client's name is entered incorrectly?
Mismatched or incomplete names can delay settlement disbursements and bank processing; correct errors before execution and retain proof of identity for verification.
How long should I retain signed agreements?
Keep the signed agreement for at least the active representation period plus applicable federal minima (e.g., IRS 3 years) and industry-specific periods such as HIPAA six-year retention when PHI is involved.

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