A client may reach a contingency fee agreement template with an attorney while seeking legal representation but doesn’t have enough adequate funds. It is one of the most important agreements in the judicial system.
What is a contingency fee agreement?
A contingency fee agreement is an agreement between the lawyer and the plaintiff. This agreement allows the lawyer to be paid after the successful handling of the case. The agreement assists in explaining the lawyer-client relationship by specifying their roles, responsibility, and payment terms.
Moreover, this agreement requests that the lawyer give legal services for free unless the client wins the case and is awarded the funds. The lawyer won’t be paid any penny if the client loses the case. Similarly, according to the agreed percentage, the lawyer will be paid if the client emerges with victory.
Why a contingency fee agreement is so important?
In the judicial system, the contingency fee agreement is one of the most agreements. It makes client able to retain a lawyer regardless of their financial situations. The client will always be assured of justice and compensation when the contingency agreement is reached. The contingency fee agreement, unlike other agreements, doesn’t need upfront or any other advance payments.
Furthermore, this agreement has been found to offer motivations to attorneys. For the clients who couldn’t afford the attorney fees in the first place, most attorneys tend to offer their best to offer settlements since the payment depends on the winning. So, you can win the case much faster in case you reach a contingency fee agreement with your attorney.
For what circumstances the contingency fee agreement is used?
The clients must know that this agreement isn’t the right fit for every case. It is usually used in cases where money damages are evident. Here are some instances of cases that the agreement may be used;
- While handling personal injury cases like car accidents, work-related accidents, consumption of substandard products, etc.
- The agreement may be used while handling a case against a nursing home or any other medical malpractice. This can be in the form of;
1- poor medical diagnosis
2- improper prescriptions
3- In a rightful manner, failure to conduct surgeries
- Poor debt collection services, a violation against creditors, etcetera are the cases in which this agreement can be used.
- The cases relevant to employment law and other wage issues.
- In some situations, when handling business litigations or even real estate issues, the contingency fee agreement can be used.
Different types of cases where contingency fee agreement isn’t used:
The contingency fee agreement doesn’t use under the following cases;
- When handling cases relevant to bankruptcy
- Cases to do with abortion
- Immigration cases
- Copyright or patent cases
- Divorce cases
- Criminal defense cases like drug handling, traffic misuse, and violations
Sample Law Firm Contingent Fee Agreement
Sample Contingency Fee Retainer Agreement
Retainer Agreement Contingency Form
Free Contingency Fee Agreement Template
Printable Contingency Fee Agreement Template
Contingency Fee with Authorizations Letter
Faqs (Frequently Asked Questions)
However, it is based on the rules set by different states. Usually, the fees are always negotiable among the client and the attorney.
The contingency fee agreement in most cases will range between 30% and 40%. Well, this percentage depends on the strength of the case, the potential amount the client could win, and other factors. On rare occasions, it could reach 50%.
Upon losing the case, neither you nor the attorney will get paid. However, you have to pay other charges like court filing fees, the cost associated with deposing witnesses whether you win or lose.
Attorneys, generally speaking, don’t take any case they know they won’t do anything to assist the client. So, they only consider those cases that have adequate facts, evidence, and good damages.