Sample Contingent Fee Clauses - 2020 | Attorney Fee Agreements & Forms

I) Fee Basis – Contingent Fees Payable

1. Matters referred to Attorney - Parties acknowledge that the above referenced matter is subject to the original contract between Client and [referring attorney’s name] and the fee as stated therein shall be the same fee to be charged by Attorney to Client, to wit: ____________
2. New matter Contingent Fee: [the modifications throughout this form clarify that recovery may include non-monetary assets, rather than just cash]
                           ________       Client hereby agrees to compensate Attorney by paying _______ % of all amounts recovered on behalf of Client. “Amounts recovered” shall include non-monetary assets, properties or entitlements recovered from the opposing parties.
3. Client understands that in the event of appeal, the percentage shall increase to ______ % of all amounts recovered. The parties agree that an appeal is defined as damages received either by collection or settlement after a docketing statement has been filed in the appropriate court of appeals following the entry of a Final Judgment in the underlying case.

II) Calculation of Attorney’s Fees [use for contingent fee]:

The amount of Attorney’s fees under this contract shall be calculated based upon the gross value of amounts recovered. Any expenses paid on behalf of the Client will be exclusively deducted from the Client’s percentage/share of the gross value of the amounts recovered. Any fee owing to the referring/participating attorney shall come from Attorney’s share of fees authorized by this contract, unless Client has specifically retained other counsel on a different fee basis.

III) Expenses:

1. Client agrees to reimburse Attorney for any and all out-of-pocket expenses incurred by attorney in connection with the prosecution and settlement of claims, including but not limited to, court costs, filing fees, deposition fee, transcript fees, reproduction fees, expert witness fees, travel expenses, investigative expenses, long distance telephone expenses, and other expenses which Attorney determines to be necessary in the pursuit of Client’s claims.
2. Deduction of Expenses: All such expenses will be deducted from the gross recovery [after][before] the calculation of Attorney’s fees.
3. Disclaimer of Non-litigation Expenses: The Attorney’s responsibility to prepay any and all expenses associated with the legal matter do not include any of the following:
   1. Normal day-to-day living expenses of the Client and/or Client’s family;
   2. Payment of medical bills for services provided, except upon the financial distribution of settlement proceeds, or other damages recovered in resolution of the Client’s claims; and
   3. The Client’s legal fees incurred for matters not associated with the matters for which Attorney has been retained, or for any other expense incurred by the Client including tuition, fines or other expenses not directly incurred in the pursuit of Client’s claims or as directed by the Attorney.
4. Expenses Absorbed by Client: In the event there is no recovery made on behalf of Client, or insufficient recovery to result in a net payment to client if Attorneys fees are paid first, Attorney agrees to change the calculation of attorney fees so that such proceeds will be applied as follows:
   1. First to the payment of all outstanding costs; then
   2. any balance to the payment of Attorney’s fees as agreed above; then
   3. any remainder to the client.
   4. In no event will Client be liable for costs incurred which are not covered by the damages recovered. Such excess costs will be borne directly by Attorney.

IV) Medical Subrogation and Use of Attorney Trust Account [if the case involves subrogation, use this]:

With regard to the payment of medical bills from the settlement or recovery, Client understands that such funds are drawn from the Client’s portion of the recovery always after the calculation of attorney’s fees. Client further understands that any of Client’s funds that may come into Attorney’s possession must be deposited or held in a “IOLTA” account, as designated by the State Bar of [Texas], and authorizes Attorney to pay such final subrogation as a part of the overall settlement. No funds placed in the Attorney’s “IOLTA” trust account, maintained pursuant to [State Bar] Rules, will earn interest recoverable by the client.

V) Payment of Fees

Client authorizes Attorney to hold and distributes funds and properties recovered under this agreement and Attorney shall provide a clear and understandable accounting to Client on such calculation and distribution of the recovered money or other properties or entitlements. If the amounts recovered include an undivided interest between Client and Attorney in properties or entitlements, the parties shall cooperate in the appropriate partition of those assets.