This form may be used to establish a fee agreement with the client. The attorney must be careful to tailor the details of the agreement to the facts of the particular case. See section 1.18 in this chapter.
Date: [Date] (“Placement Date”)
Contingent Fee Agreement
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Select one of the following. |
[Name of client] (“Client”) hereby retains [name of firm] (“Firm”) to represent Client in collecting from [name of debtor] (“Debtor”) [include if applicable: under account number [number]] the debt (“Debt”), which includes [include as applicable: making demand/filing suit/moving for judgment/recording the judgment/instituting and maintaining postjudgment remedies] (the “Services”).
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The practitioner should decide how broad or narrow the representation should be when defining the terms “debt” and “services.” Creditors occasionally discover additional accounts or invoices after referring the file or acquire an additional account or invoice as a result of a merger, acquisition, or extension of credit. If limiting representation and exposure is desired, consider describing the debt in sufficient detail (e.g., account number, invoice number, balance owed) and specifying what actions the firm agrees to take to collect the debt. |
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Select the following if collecting on a judgment. |
[Name of client] (“Client”) hereby retains [name of firm] (“Firm”) to represent Client in collecting the judgment awarded in favor of [name of creditor] (“Creditor”) and against [name of debtor] (“Debtor”) under Cause No. [number] in the [designation court], [county] County, Texas, styled “[style of case]” (the “Services”).
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Select the following if domesticating a judgment. |
[Name of client] (“Client”) hereby retains [name of firm] (“Firm”) to represent Client in domesticating the judgment awarded in favor of [name of creditor] (“Creditor”) and against [name of debtor] (“Debtor”) under Cause No. [number] [describe issuing forum and other identifying information], styled “[style of case]” (the “Services”).
Fee Arrangement and Scope of Representation
Client assigns and sets over to Firm a [percentage contingent fee, e.g., thirty-five percent] ([percent]%) contingent fee in any recovery (“Fee”).
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Select one of the following. |
The parties agree that Debtor may file a bankruptcy, counterclaim, claim for affirmative relief, adverse action, motion for sanctions, bill of review, or appeal (“Event”).
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Include the following if collecting or domesticating a judgment. |
The parties agree that Debtor may file a bankruptcy, claim for affirmative relief, adverse action, motion for sanctions, bill of review, or appeal (“Event”).
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Continue with the following. |
This agreement does not include representation for any Event. In an Event, Client may employ Firm to represent Client on an hourly basis, at a rate to be agreed on at the time of the Event in addition to the agreed-on contingent fee. Should Client not retain Firm to represent Client with respect to the Event, Client understands and agrees that it should immediately retain other legal counsel and that Firm retains a [percentage contingent fee, e.g., thirty-five percent] ([percent]%) contingent fee in any recovery.
This agreement does not include any services with respect to maintaining the enforceability of the judgment and judgment lien, including but not limited to calendaring deadlines, researching for assets, issuing and serving new writs of execution, or re-abstracting.
Additionally, Firm has not been retained to provide any tax information or advice. Client agrees to seek professional tax advice elsewhere.
If Client receives any payment from Debtor on or after the Placement Date, Client agrees to immediately pay Firm its Fee.
Client agrees that Firm is entitled to one-hundred percent (100%) of any attorney’s fees awarded and recovered from Debtor or opposing counsel that result from sanctions or any motion to compel.
Client agrees it will pay all court costs, related fees, and expenses incurred in the collection efforts by Firm.
No Guarantee
Client understands there is no guarantee of success or recovery of any amount, including attorney’s fees.
Termination of Agreement and Withdrawal from Case
Firm may terminate this agreement and withdraw from further representation by written notice to Client and with immediate effect for any of the following reasons:
1.Client’s failure to cooperate and comply fully with any reasonable request;
2.Client’s engaging in conduct or making statements that render it unreasonably difficult for Firm to carry out the purposes of its employment;
3.Client’s insisting that Firm engage in conduct that is contrary to Firm’s judgment and advice;
4.Client’s failure to pay or approve court costs, related fees, or expenses within thirty (30) days from the time a request is made; or
5.for other good cause.
In the event of such termination, Client agrees to immediately pay Firm all court costs, related fees, and expenses incurred in any collection efforts undertaken by Firm prior to termination.
If Firm withdraws or Client terminates Firm’s services for good cause, Firm, upon request of Client or on Firm’s own initiative, shall elect to return all of Client’s papers and file materials to Client in any one of the following ways:
1.electronically, such as by e-mail, Dropbox, or FTP, by including electronic copies of the papers and file materials; or
2.by mail through the U.S. Postal Service or any overnight delivery service, such as FedEx, by including copies or electronic copies of the papers and file materials.
However, Firm retains the right to destroy Client’s file and all documents contained in Client’s file after the passage of two (2) years from the date representation is terminated either by Client or Firm.
Entire Agreement of the Parties
This agreement embodies the entire agreement of the parties hereto with respect to the matters herein contained, and it is agreed that the terms, conditions, and stipulations hereof shall not be modified or revoked unless by written agreement signed by both parties and attached hereto and made a part hereof.
Client acknowledges that Client has received a copy of the agreement. Client acknowledges that Client has read this entire agreement and understands and considers it to be fair and reasonable and agrees to the provisions herein. Client acknowledges that the undersigned attorney has answered all questions concerning the agreement raised by Client.
This agreement is entered into and shall be performed in [county] County, Texas. Client agrees to keep Firm advised of any changes in residence address, work address, and all telephone numbers.
SIGNED [date].
[Name of client]
By
Address:
Telephone:
E-mail:
[Name of firm]
By
Address:
Telephone:
E-mail:
Notice to Clients
Texas law requires that all attorneys provide their clients with the following notice about the existence of the attorney 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’s Office of Chief Disciplinary Counsel will provide you with information about how to file a complaint. Please call 1-800-932-1900 toll-free for more information.”