Contingent Fee Contract
A.Law Firm Retained
[Name of client] (the “Client”) does hereby retain [name of firm], (the “Firm”) in connection with the following matter: Claim and lawsuit of the Client against the following Debtor for the following amount or approximate amount.
B.Debtor
Name:
Address:
Telephone:
Fax:
E-mail:
C.Amount
$[amount]
D.Fee Arrangement
For its services, the Firm will receive from the Client a contingent fee of [percent] percent ([percent]%) of all sums collected from the Debtor.
E.Cost Advancement
In addition, the Client agrees to pay all court costs and out-of-pocket expenses incurred by the Firm in prosecuting this suit. For that purpose, the Client will furnish the Firm with an advance in the amount of $[amount], which will be held by the Firm in trust and used to pay court costs and other out-of-pocket expenses. The Firm may request additional court cost advances from time to time, and the Client agrees to furnish such additional court cost advances when requested by the Firm. Any amount of such cost advances that remain unexpended at the time the case is finally settled or paid will be refunded to the Client.
F. Excluded Services
This fee arrangement includes prosecution of the suit through trial, final judgment, and postjudgment collection activity. However, it does not include defense of a counterclaim or cross-claim that may be filed by another party against the Client, ancillary proceedings such as an injunction, or an appeal. This fee contract is a limited undertaking for services in connection with the specific matter described in this contract, and the Firm does not undertake to represent the Client generally or on other matters not specified in this contract.
G. Hourly Fee If Countersuit Is Filed
If the Debtor should file a counterclaim, cross-claim, or countersuit against the Client, then, in that event, the Client will pay the Firm for all services rendered thereafter on an hourly fee basis of $[amount] per hour for all services rendered from that date forward, and the contingent fee will no longer apply.
H. Conduct of Case
The Firm agrees to perform legal services that, in the exercise of its professional judgment, it deems necessary and appropriate to represent the Client’s interest in such legal matters. The Firm will consult with the Client regarding the case and keep the Client informed as to developments that it considers significant. The Firm reserves the right to assign lawyers and other personnel of its choice to perform the legal services, to hire experts it deems necessary, to engage in discovery it thinks desirable, and in all ways determine the conduct of the case. The Client will promptly respond to requests for assistance and information. The Client shall assist the Firm by furnishing information about the case, responding to discovery requests, furnishing testimony when required to support the Client’s claims and defenses, and attending mediation and trial.
I. No Guaranteed Outcome
The Client understands that the Firm has made no representations concerning the successful outcome of any contested claim or negotiation or the favorable outcome of any legal action that may be filed or be required to be filed on behalf of the Client by the Firm. The Firm has not guaranteed that it will obtain reimbursement to the Client of any of its costs or expenses resulting from the incident out of which the claim may arise.
J. IOLTA Disclosure
You are hereby notified that all funds deposited in the Firm trust account, including your funds, draw interest. That interest is paid by the depository to the Texas Equal Access to Justice Foundation under orders of the Texas Supreme Court. This Firm receives none of the interest so earned and receives no benefit from the Foundation except those benefits that all Texas citizens receive as a result of the services rendered by the Foundation.
K. Security Interest in Recovery
The Firm is granted a security interest in any recovery, whether money, property, or otherwise, that may be recovered by compromise, settlement agreement, suit, or judgment. The security interest granted herein shall survive any termination of this contract until all costs and reimbursable expenses are paid.
L. Mediation
The court will require that the parties and their attorneys attend a mediation before a mediator selected either by the parties or by the judge of the court, before the court will conduct a trial on the merits of the suit. The Client agrees to pay the Client’s portion of the mediator’s fee to the mediator at or before the time of the mediation.
M. Attorney’s Obligation to the Court System
Pursuant to section 9.001 et seq. of the Texas Civil Practice and Remedies Code and rule 13 of the Texas Rules of Civil Procedure, the signature of an attorney on any pleading or pleadings, motion, or other paper means that, to the best of the attorney’s knowledge, information, and belief, formed after reasonable inquiry, such instrument is not groundless or brought in bad faith or for the purpose of harassment. The rule further provides that an attorney or a party who brings a fictitious suit as an experiment to get an opinion of the court or files any fictitious pleading in a cause for such a purpose or makes statements in pleadings that are known to be groundless and false for the purpose of securing a delay of the trial of the cause shall be guilty of contempt of court. “Groundless” for the purpose of rule 13 means that there is no basis in law or fact and not warranted by good-faith argument for the extension, modification, or reversal of existing law. Rule 11 of the Federal Rules of Civil Procedure is a similar rule.
In light of section 9.001 et seq. of the Texas Civil Practice and Remedies Code, rule 13 of the Texas Rules of Civil Procedure, and rule 11 of the Federal Rules of Civil Procedure, the Client agrees that the Firm will not advance any spurious claims of fact or law in the advancement of the claim covered by this employment agreement. In the event of a conflict between the Firm and the Client as to whether a proposed course of action violates or purports to violate these three rules, or any of them, resolution of that conflict shall be solely vested in the Firm. If the Client persists, at any time, in advancing a spurious claim of fact, the Firm may treat this contract as breached, may withdraw from the employment, may withdraw from the litigation, and shall be entitled to whatever rights the Firm would otherwise have for breach of contract.
The State Bar Act, effective September 1, 1991, requires all attorneys practicing law in Texas to notify their clients of the existence of the grievance process. The State Bar of Texas investigates and prosecutes professional misconduct committed by Texas attorneys. Although not every complaint against or dispute with a lawyer involves professional misconduct, the State Bar Office of General Counsel will provide you with information about how to file a complaint. For more information, you may call 1-800-932-1900. This is a toll-free telephone call.
N. Preservation of Records
You must preserve and retain all paper files and electronically stored information that is related to this lawsuit and the underlying dispute or transaction. It is important that you take immediate actions to preserve these records and this information, as failure to take adequate steps to collect and preserve evidence, including electronic evidence, could result in sanctions being imposed by the court for spoliation of evidence. The law provides that, if a party who has the duty to preserve records relevant to a matter involved in a lawsuit fails to preserve the records, the judge may instruct the jury to presume that the missing records would support the opposing party’s version of the facts. (1) Assign to one person responsibility for preservation of records. (2) Gather up and preserve all contracts, business records, reports, photographs, e-mails, faxes, and letters related to the matter and send copies to us. (3) Contact former employees who may have been involved, inform them of the lawsuit, and identify those former employees for us. (4) Preserve backup tapes or other computer records for your file server and e-mail server. (5) Suspend any routine for automatically disposing of digital or paper records and backup tapes. (6) Identify for us any records that might relate to the lawsuit that have been lost or destroyed for any reason.
O. Client’s Authority to Contract
The Client represents that it is the full owner of the claims and matters for which it has engaged the Firm and that the Client has full authority without encumbrance to prosecute the same and to enter into this contract of employment.
P. Termination
Either the Client or the Firm may terminate the Firm’s representation of the Client in this matter at any time, with or without cause, by written notice. If the Client terminates the Firm’s representation of the Client, the Firm has the right to retain its contingent-fee interest in the proceeds of the case. The Firm has the right of immediate reimbursement for any costs outstanding. Any monies on deposit or in trust on behalf of the Client will be refunded to the Client upon termination. If the Firm terminates the Firm’s representation of the Client, the Client is entitled to any monies held on behalf of the Client to be refunded immediately, less any outstanding costs. If the Firm terminates its representation of the Client, then the Firm will waive its right for any further recovery in the proceeds of the case.
Q. General Provisions
This agreement shall be construed under and in accordance with the laws of the state of Texas, and all obligations of the parties created hereunder are performable in [county] County, Texas. This contract is binding on the parties hereto, their successors, executors, administrators, and heirs, and may not be altered or amended except in writing signed by all of the parties hereto. In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. This agreement constitutes the entire agreement of the parties. No promises, representations, or agreements not set forth herein have been made by either the Client or the Firm or form any part of this agreement.
SIGNED [date].
[Name of client]
By
Address:
Telephone:
E-mail:
[Name of firm]
By
Address:
Telephone:
E-mail: