Document background
The Contingency Fee Agreement is a crucial document used in Switzerland when establishing a fee arrangement between legal service providers and their clients that includes a success-based component. While pure contingency fee arrangements are prohibited under Swiss law, mixed fee structures are permitted subject to strict regulations established by the Swiss Federal Supreme Court. This document is typically used in cases where the client seeks to align legal fees with case outcomes while maintaining compliance with Swiss legal requirements. The agreement must carefully balance the basic fee component with the success fee element, ensure attorney independence, and provide adequate client protections. It's particularly relevant in litigation, corporate transactions, and other legal matters where the outcome can be clearly defined and measured. The document must comply with both federal and cantonal regulations, as well as professional ethics rules established by Swiss bar associations.
