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Contingency Fee Engagement Letter Template for United States

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Key Requirements PROMPT example:

Contingency Fee Engagement Letter

"I need a Contingency Fee Engagement Letter for a personal injury case in California, with a sliding scale fee structure starting at 33.33% and increasing to 40% if the case goes to trial, and I want to include specific provisions for handling medical liens."

Document background
The Contingency Fee Engagement Letter serves as the foundational document for legal representations where payment is based on successful outcome rather than hourly billing. This arrangement is common in personal injury, employment, and other civil litigation matters throughout the United States. The document must comply with state-specific regulations and bar association requirements, typically including detailed fee calculations, cost arrangements, and mandatory client rights disclosures. It protects both attorney and client by clearly defining the scope of representation and payment terms.
Suggested Sections

1. Attorney and Client Identification: Full names and contact details of both the attorney/firm and client

2. Scope of Representation: Clear description of legal matter(s) covered by the agreement

3. Fee Structure: Specific percentage(s) of recovery and when/how they apply

4. Costs and Expenses: Explanation of how costs are handled and who is responsible for them

5. Calculation of Recovery: Definition of what constitutes 'recovery' for fee calculation purposes

6. Client Rights: Statement of client's rights including right to terminate

Optional Sections

1. Multiple Attorney Provisions: Terms for involving other attorneys, to be included when collaboration with other firms is anticipated

2. Appeals Provisions: Terms for handling appeals if they become necessary, included when litigation is likely to involve appeals

3. Alternative Fee Arrangements: Terms for different fee structures in specific circumstances, included when hybrid fee arrangements are contemplated

Suggested Schedules

1. Fee Schedule: Detailed breakdown of contingency percentages for different stages or recovery amounts

2. Costs Schedule: Itemized list of anticipated costs and expenses

3. Client's Rights Notice: State-mandated notice of client's rights (required in some jurisdictions)

Authors

Alex Denne

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

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Industries

State Rules of Professional Conduct: State-specific rules governing attorney-client relationships, including fee arrangements and ethical obligations. Most states follow variations of ABA Model Rules of Professional Conduct, particularly Rule 1.5 on fees.

State Bar Requirements: Specific requirements set by state bar associations regarding contingency fee agreements, including mandatory disclosures, format specifications, and content requirements.

Ethics Rules and Opinions: State-specific ethics opinions governing contingency fees, including limitations on percentages, mandatory disclosures, and handling of costs and expenses.

Federal Laws: Federal statutes and court rules that may apply to specific types of cases (e.g., FDCPA, FLSA) and their requirements for fee arrangements in federal litigation.

Consumer Protection Laws: State-specific consumer protection regulations requiring clear disclosure of terms and conditions in fee agreements.

Scope Definition Requirements: Legal requirements for clearly defining the scope of legal representation in the engagement letter.

Fee Structure Requirements: Rules governing how contingency fees must be structured, calculated, and disclosed, including specific percentage limitations.

Cost and Expense Provisions: Requirements for disclosing how costs and expenses will be handled, including client responsibility in case of no recovery.

Termination Clauses: Legal requirements for including provisions about termination of representation and calculation of fees in case of early termination.

Cancellation Rights: Mandatory provisions regarding the client's right to cancel the agreement, including any cooling-off periods required by law.

Teams

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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