Engagement (Retainer) Letter: Contingency Fee Arrangement

A legal template titled "Engagement (Retainer) Letter: Contingency Fee Arrangement under USA law" is a document that outlines the terms and conditions between a legal practitioner (typically an attorney) and their client regarding a contingency fee arrangement. In the United States, contingency fee arrangements are commonly utilized in civil litigation cases, primarily personal injury or insurance claims.

The template serves as a formal agreement that establishes the terms under which the attorney will provide legal services to the client on a contingency basis. In a contingency fee arrangement, the attorney's fees are contingent upon the successful outcome of the case. If the client wins or reaches a favorable settlement, the attorney is entitled to a predetermined percentage of the recovery as compensation for their services. However, if the client loses the case, the attorney is not entitled to any fees, although the client may still be responsible for certain litigation costs.

This legal template typically includes sections specifying the scope of legal representation, the terms of the contingency fee agreement, and the responsibilities and obligations of both parties. It may also outline the client's obligations in terms of providing necessary information, cooperating with the attorney, and adhering to payment arrangements for potential costs not covered by the contingency agreement.

Additionally, the template may address important matters, such as the attorney's right to withdraw from the case under certain circumstances and the client's right to hire another attorney if they choose to do so. This template aims to ensure a clear understanding, transparency, and protection of the rights and interests of both parties involved in the attorney-client relationship.

Please note that this description serves as a general overview, and specific content may vary depending on the jurisdiction, the practice area, and the preferences of the attorney utilizing the template.