The Contingency Fee Retainer Agreement is essential in South African legal practice where clients seek legal representation but cannot afford traditional fee arrangements. This document is specifically designed to comply with the Contingency Fees Act 66 of 1997 and related legislation, providing a framework for 'no win, no fee' arrangements while protecting both client and attorney interests. It is commonly used in personal injury claims, civil litigation, and other matters where success-based fee structures are appropriate. The agreement must include specific statutory provisions, success fee caps, and clear definitions of successful outcomes. It serves as a crucial tool in promoting access to justice while ensuring fair compensation for legal services rendered.
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1. Parties: Identification of the attorney/law firm and the client, including full legal names and contact details
2. Background: Context of the agreement, including the nature of the legal matter and why a contingency fee arrangement is being entered into
3. Definitions: Key terms used in the agreement, including 'success', 'contingency fee', and 'disbursements'
4. Scope of Services: Detailed description of legal services to be provided and the specific matter being handled
5. Success Fee Structure: Details of the contingency fee calculation, including percentages and compliance with the statutory caps under the Contingency Fees Act
6. No Win, No Fee Provisions: Clarification that no fees will be charged if the matter is unsuccessful, except for disbursements if agreed
7. Disbursements: Treatment of case-related expenses and how they will be handled
8. Client's Rights and Obligations: Client's responsibilities, including providing information and cooperation
9. Attorney's Rights and Obligations: Attorney's duties, professional obligations, and standard of service
10. Termination: Circumstances under which either party may terminate the agreement and the consequences
11. Professional Indemnity: Confirmation of professional insurance coverage
12. General Provisions: Standard clauses including governing law, entire agreement, and amendments
1. Multiple Party Provisions: Required when there are multiple clients in the same matter, addressing fee sharing and decision-making
2. Expert Witness Fees: Needed when expert testimony is likely to be required, addressing how these costs will be handled
3. Appeal Provisions: Include when the agreement needs to address potential appeals and associated fee arrangements
4. International Elements: Required when the matter involves cross-border elements or foreign jurisdictions
5. Alternative Dispute Resolution: Optional provisions for mediation or arbitration of fee disputes
6. Counsel Provisions: Include when the use of advocates or other counsel may be necessary
1. Schedule A - Fee Calculation: Detailed breakdown of how success fees will be calculated, with examples
2. Schedule B - Disbursements List: Comprehensive list of anticipated disbursements and their treatment
3. Schedule C - Matter Description: Detailed description of the legal matter and intended outcomes
4. Appendix 1 - Client Information Form: Client's detailed information and matter-specific questionnaire
5. Appendix 2 - Power of Attorney: Standard power of attorney form for client signature
6. Appendix 3 - Statutory Notice: Mandatory notice as required by the Contingency Fees Act
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