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Contingency Fee Contract Template for New Zealand

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Key Requirements PROMPT example:

Contingency Fee Contract

"I need a Contingency Fee Contract for a personal injury matter in New Zealand, with a 25% success fee and specific provisions for expert witness costs, to be effective from March 1, 2025."

Document background
The Contingency Fee Contract is a crucial document used in New Zealand legal practice when a client and law firm agree to link legal fees to the successful outcome of a case. This arrangement is particularly common in civil litigation, personal injury cases, and commercial disputes where clients may not have the means to pay ongoing legal fees. The document must strictly comply with New Zealand's Lawyers and Conveyancers Act 2006 and associated regulations, which set specific requirements for such fee arrangements. It typically includes detailed definitions of success criteria, fee calculation methods, treatment of disbursements, and mandatory client care information. The agreement provides clarity and protection for both parties while ensuring compliance with professional obligations and ethical requirements.
Suggested Sections

1. Parties: Identification of the law firm and the client(s)

2. Background: Context of the legal matter and purpose of the contingency fee arrangement

3. Definitions: Key terms used in the agreement including 'Success', 'Fee', 'Disbursements', and 'Settlement'

4. Scope of Services: Clear description of legal services to be provided and the specific matter covered

5. Fee Structure: Detailed explanation of the contingency fee calculation method and percentage

6. Payment Terms: When and how fees become payable, including timing of payment after success

7. Disbursements and Other Costs: Treatment of court fees, expert costs, and other disbursements

8. Client Obligations: Client's responsibilities including providing information and instructions

9. Termination: Circumstances under which the agreement can be terminated and consequences

10. Professional Obligations: Statement of compliance with professional rules and obligations

11. Governing Law: Confirmation that New Zealand law governs the agreement

Optional Sections

1. Multiple Party Provisions: Required when there are multiple clients, addressing how decisions are made and fees split

2. Expert Witness Arrangements: Needed when expert witnesses are likely to be required, addressing appointment and costs

3. Insurance and Funding: Relevant when litigation funding or insurance is involved

4. Conflict Resolution: Detailed dispute resolution procedures beyond standard terms

5. Legal Aid Acknowledgment: Required when client may be eligible for legal aid

6. GST Treatment: Detailed GST provisions when dealing with registered entities or complex arrangements

7. Third Party Obligations: Required when third parties may have claims on settlement proceeds

Suggested Schedules

1. Schedule 1 - Matter Description: Detailed description of the legal matter and scope of work

2. Schedule 2 - Fee Calculation: Detailed breakdown of how contingency fee will be calculated with examples

3. Schedule 3 - Disbursements Schedule: List of anticipated disbursements and their treatment

4. Schedule 4 - Client Authority: Client's formal authorization for specific actions

5. Appendix A - Costs Estimate: Estimated disbursements and other costs (required by NZ Law Society rules)

6. Appendix B - Information for Clients: Standard client care and service information required by NZ Law Society

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses

































Relevant Industries

Legal Services

Personal Injury

Commercial Litigation

Employment Law

Class Actions

Insurance

Professional Services

Dispute Resolution

Corporate Law

Civil Litigation

Relevant Teams

Legal

Compliance

Risk Management

Finance

Operations

Client Services

Dispute Resolution

Contracts Administration

Professional Standards

Legal Operations

Relevant Roles

Managing Partner

Legal Director

Senior Counsel

Litigation Partner

Chief Legal Officer

Legal Risk Manager

Compliance Officer

Practice Manager

Finance Director

Client Relationship Manager

Legal Operations Manager

Contract Manager

Industries







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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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