The Contingency Fee Contract serves as a critical document in legal representation where clients may not have the means to pay traditional hourly rates. This agreement enables access to legal services by allowing payment only if the case is successful. The contract must comply with state bar association rules, ethics guidelines, and federal regulations where applicable. It typically specifies the percentage of recovery allocated as fees, outlines cost responsibilities, and includes mandatory disclosures required by the jurisdiction. This type of agreement is commonly used in personal injury, employment, and other civil litigation matters where monetary damages are sought.
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1. Parties: Identification of attorney/law firm and client with full legal names and addresses
2. Background: Brief description of the legal matter and purpose of representation
3. Definitions: Key terms used throughout the agreement including 'Recovery', 'Costs', 'Fees'
4. Scope of Services: Detailed description of legal services to be provided
5. Fee Structure: Percentage of recovery and calculation method
6. Costs and Expenses: Definition and handling of case-related expenses
7. Payment Terms: When and how payments will be processed
8. Termination: Rights and procedures for ending the agreement
9. Signatures: Execution block with date and signatures
1. Multiple Attorney Provisions: Terms for fee sharing when multiple attorneys are involved
2. Appeals Provisions: Terms for handling appeals if they arise
3. Alternative Fee Arrangements: Different fee structures for different outcomes
4. Referral Fee Provisions: Terms for handling referral fees
1. Schedule A - Costs and Expenses: Detailed list of anticipated costs and expenses
2. Schedule B - Fee Calculation Examples: Examples showing how fees will be calculated in various scenarios
3. Appendix A - Client Rights: Statement of client rights required by state law
4. Appendix B - State-Specific Disclosures: Required disclosures based on state regulations
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