The Conditional Fee Agreement serves as a critical document in U.S. legal practice, particularly in cases where clients may not have the means to pay traditional hourly legal fees. This agreement type is commonly used in personal injury, medical malpractice, and employment cases, allowing clients to pursue legal action without upfront costs. The CFA must carefully outline the fee structure, typically a percentage of the recovery, while complying with state-specific regulations and ethical guidelines. It provides clarity on cost allocation, defines success criteria, and establishes payment terms, protecting both attorney and client interests throughout the legal proceedings.
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1. Parties: Identification of the attorney/law firm and client
2. Background: Brief description of the legal matter and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of legal services to be provided
5. Fee Structure: Percentage or calculation method for contingency fee
6. Costs and Expenses: Treatment of case-related expenses and disbursements
7. Payment Terms: When and how fees will be calculated and paid
8. Termination: Conditions under which either party may end the agreement
1. Multiple Representation: Terms for representing multiple clients in the same matter when more than one client is involved in the case
2. Referral Fees: Terms for sharing fees with referring attorneys when case involves referral from another attorney
3. Alternative Dispute Resolution: Procedures for resolving disputes between attorney and client when parties wish to specify dispute resolution process
4. Insurance Coverage: Terms relating to insurance coverage and recovery when case involves insurance claims
1. Fee Schedule: Detailed breakdown of percentage fees for different outcomes or stages
2. Expense Schedule: List of anticipated expenses and their treatment
3. Client Authority: Specific authorizations granted by client to attorney
4. State-Specific Disclosures: Required statutory disclosures for the relevant jurisdiction
Relevant legal definitions
Clauses
Relevant Industries
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