Fee Agreement – Contingency (Bankruptcy)
1. Parties and Matter
- Law Firm: [FIRM NAME], [ADDRESS].
- Client: [CLIENT NAME], [ADDRESS].
- Matter: Representation for a specific affirmative recovery or fee-shifting matter related to the bankruptcy case (the "Affirmative Matter"), described as: [DESCRIBE CLAIM].
Important: This agreement applies only to the Affirmative Matter. The main bankruptcy case is outside this scope and must be handled under a separate agreement.
2. Scope of Representation
The Firm will pursue the Affirmative Matter, which may include:
☐ Adversary proceeding to recover money or property
☐ Objection to claim or lien avoidance action
☐ Enforcement of rights against a creditor or third party
☐ Other affirmative relief: ________________________
3. Contingency Fee Terms
The Firm's fee is contingent upon recovery by settlement, judgment, or other resolution.
3.1 Fee Percentage Schedule
- Pre-suit resolution: [PERCENT]% of recovery
- After adversary proceeding filed: [PERCENT]% of recovery
- After trial begins or appeal filed: [PERCENT]% of recovery
3.2 Fee Base
Attorney fee is calculated on:
☐ Gross recovery (before costs are deducted)
☐ Net recovery (after costs are deducted, if permitted by law)
If there is no recovery, no attorney fee is owed.
3.3 Statutory or Contractual Attorney Fees
If law permits recovery of attorney fees from another party, the parties agree:
☐ Any attorney fee award is paid to the Firm and credited against the contingency fee owed by Client
☐ Any attorney fee award is paid to the Firm in addition to the contingency fee, subject to applicable law
☐ Any attorney fee award belongs to Client and is treated as part of the recovery
4. Costs and Expenses
The Firm may advance costs including filing fees, service of process, court reporters, expert fees, investigators, and e-discovery vendors.
If there is a recovery, costs will be reimbursed from the recovery as set forth in the settlement statement.
If there is no recovery, costs are:
☐ Client responsibility
☐ Waived by Firm
5. Settlement Authority
Client retains final authority to accept or reject any settlement. The Firm will communicate all offers promptly and provide recommendations.
6. Termination and Withdrawal
Client may terminate representation at any time. The Firm may withdraw as permitted by applicable rules and court orders. Upon termination, the Firm may assert a lien or claim for:
1) Costs advanced, and
2) The reasonable value of services (quantum meruit), payable from any recovery, if allowed by law.
7. Fee Dispute Resolution
Fee disputes will be submitted to any applicable bar fee dispute program before litigation, if required.
8. Governing Law and Venue
This Agreement is governed by the laws of [STATE], with venue in [COUNTY], [STATE], unless otherwise required.
9. Signatures
| Party | Signature | Date |
|---|---|---|
| [CLIENT NAME] | __________________________ | __________ |
| [ATTORNEY NAME], [FIRM NAME] | __________________________ | __________ |