A Conditional Fee Agreement is essential in South African legal practice where clients seek legal representation but may not have the means to pay traditional upfront legal fees. This document, governed by the Contingency Fees Act 66 of 1997 and overseen by the Legal Practice Council, enables access to justice by allowing legal practitioners to take on cases on a no-win-no-fee or reduced fee basis. The agreement must specify success criteria, fee calculations (including the statutory 100% cap on success fees), and client protections. It's particularly useful in litigation matters such as personal injury claims, commercial disputes, and civil litigation where the outcome may result in a monetary award or settlement.
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1. Parties: Identification of the legal practitioner/firm and the client, including full contact details and registration/identity numbers
2. Background: Context of the legal matter and the reason for entering into a conditional fee arrangement
3. Definitions: Definition of key terms including 'success', 'normal fees', 'success fee', and other relevant terms
4. Scope of Legal Services: Detailed description of the legal services to be provided under the agreement
5. Success Criteria: Clear definition of what constitutes 'success' in the matter, as required by the Contingency Fees Act
6. Fee Structure: Detailed explanation of the normal fees and how the success fee will be calculated, ensuring compliance with the 100% cap under the Contingency Fees Act
7. Payment Terms: Terms and conditions for payment, including timing and method of payment
8. Client's Rights and Obligations: Outline of the client's responsibilities and statutory rights under the agreement
9. Attorney's Rights and Obligations: Outline of the attorney's responsibilities and obligations under the agreement
10. Termination: Conditions under which the agreement can be terminated and the consequences thereof
11. General Provisions: Standard contractual provisions including governing law, jurisdiction, and entire agreement clause
1. Multiple Party Provisions: Required when there are multiple clients or parties involved in the matter
2. Disbursements: Detailed section on how disbursements will be handled and charged, if not included in the main fee structure
3. Insurance Arrangements: Required when there is adverse costs insurance or other relevant insurance in place
4. Settlement Authority: Optional provisions regarding the attorney's authority to settle the matter
5. Conflict Resolution: Detailed dispute resolution procedures beyond the standard court jurisdiction
6. File Retention: Specific provisions about retention of files and documents after the matter concludes
1. Schedule A - Fee Calculation: Detailed breakdown of normal fees, hourly rates, and success fee calculations
2. Schedule B - Success Criteria Details: Detailed explanation and examples of what constitutes success in the matter
3. Schedule C - Disbursements Schedule: List of anticipated disbursements and how they will be handled
4. Appendix 1 - Client Care Letter: Standard client care information as required by the Law Society
5. Appendix 2 - Risk Assessment: Assessment of the risks involved in the matter and likelihood of success
6. Appendix 3 - Comparison of Fee Arrangements: Comparison between conditional fee arrangement and traditional fee arrangements as required by the Contingency Fees Act
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Relevant Teams
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Relevant Roles
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Chief Financial Officer
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