Legal Deductible Acknowledgement

LEGAL DEDUCTIBLE ACKNOWLEDGEMENT

This Legal Deductible Acknowledgement ("Acknowledgement") is made as of by and between Client Name: , Address: ("Client"), and Law Firm Name: , Address: ("Firm").

RECITALS

WHEREAS, Client has engaged Firm to provide legal services in the matter described as:

WHEREAS, Client may be obligated by insurance policy terms, contract, or agreement to satisfy a deductible or retention amount in connection with recoveries, settlements, judgments or costs (the "Deductible"); and

WHEREAS, Firm requires Client's express written acknowledgement that Client is responsible for payment of the Deductible and for cooperating with Firm and any insurer or third party in applying recoveries to satisfy the Deductible.

NOW THEREFORE

In consideration of the engagement of Firm by Client and the mutual covenants contained herein, the parties agree as follows:

1. ACKNOWLEDGEMENT OF DEDUCTIBLE

Client acknowledges and agrees that Client is responsible for payment of the Deductible in the amount of $ unless otherwise specified in a separate fee agreement. The Deductible shall be applied to charges for legal fees, costs, and disbursements advanced or incurred by Firm on Client's behalf as described in this Acknowledgement.

2. PAYMENT TERMS

Client shall pay the Deductible to Firm within thirty (30) days of Firm's written demand or upon receipt by Client of a settlement, judgment, or other recovery that gives rise to application of the Deductible, whichever occurs first. If payment is not made when due, Client shall pay interest on overdue amounts at the rate of , compounded monthly, to the maximum extent permitted by law.

3. APPLICATION OF RECOVERIES

Client authorizes Firm, and any insurer if applicable, to apply settlement proceeds, judgment funds, or other recoveries first to costs of collection and to amounts advanced by Firm, and then to the Deductible. Any net recovery remaining after satisfaction of costs, advances and the Deductible shall be distributed in accordance with the retainer or fee agreement between the parties.

4. ADVANCES, COSTS, AND SECURITY

Firm may, in its discretion, advance costs and disbursements necessary for the prosecution or defense of the matter. Client expressly agrees to reimburse Firm for such advances and costs and grants Firm a consensual charging lien and security interest, to the fullest extent permitted by law, in any recovery or claim proceeds to secure payment of the Deductible, advances, fees, and costs.

5. COOPERATION; SUBROGATION

Client shall fully cooperate with Firm and with any insurer in connection with the prosecution, defense, settlement, or collection of claims. Client shall execute and deliver such documents as Firm or insurer reasonably request to permit Firm or insurer to be subrogated to Client's rights to the extent of any advances, costs, or payments of the Deductible.

6. REPRESENTATIONS AND WARRANTIES

Client represents that Client has authority to enter into this Acknowledgement, that no other person or entity has an interest in the Deductible that would impair Firm's rights under this Acknowledgement, and that Client has disclosed to Firm all material facts relating to insurance coverage, policy terms, and any known third‑party claims that may affect the Deductible.

7. INDEMNITY

Client shall indemnify and hold Firm harmless from any losses, liabilities, claims, demands or expenses (including reasonable attorneys' fees) incurred by Firm as a result of Client's failure to pay the Deductible or reimburse advances, except to the extent any such loss results from Firm's gross negligence or willful misconduct.

8. DISPUTE RESOLUTION

Any dispute arising out of or relating to this Acknowledgement shall be resolved by litigation filed in the state or federal courts located in the state selected under the Governing Law clause below, subject to mandatory jurisdiction and venue provisions of that state. Nothing in this section limits a party's right to seek provisional or equitable relief in any court of competent jurisdiction.

9. NOTICES

All notices, requests, and other communications required or permitted hereunder shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate by written notice in accordance with this section.

10. GOVERNING LAW; VENUE

This Acknowledgement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

11. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Acknowledgement shall be effective unless it is in writing and signed by both parties. The waiver of any breach shall not constitute a waiver of any subsequent breach.

12. ENTIRE AGREEMENT; SEVERABILITY

This Acknowledgement, together with any fee agreement between the parties, constitutes the entire agreement of the parties with respect to the Deductible and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. If any provision of this Acknowledgement is held to be invalid or unenforceable, the remainder of this Acknowledgement shall remain in full force and effect.

13. COUNTERPARTS

This Acknowledgement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be treated as originals for all purposes.

BY SIGNING BELOW, Client and Firm each acknowledge that they have read and understood this Acknowledgement, that they have had the opportunity to seek independent advice prior to executing this Acknowledgement, and that they agree to be bound by its terms.

Sign Now