Contingency Fee Agreement - Arkansas

CONTINGENCY FEE AGREEMENT (ARKANSAS)

1. Parties and Scope of Representation

Date: [__/__/____]

Matter / Claim (scope of representation): [________________________________]

Adverse Party / Defendant(s): [________________________________]

Date of Incident / Accrual: [__/__/____]

Applicable Statute of Limitations Deadline: [__/__/____]

The attorney agrees to represent the client in the matter described above. This representation does not include any appeal, post-judgment collection, related claim, or separate proceeding unless added by written amendment signed by both parties.

☐ Representation includes trial-level proceedings only
☐ Representation includes appeal (see Section 3 tier)
☐ Other limitation on scope: [________________________________]

2. The Contingent Fee

The attorney's fee is contingent on recovery. The fee is the following percentage of the recovery, determined by the stage at which the matter is resolved (Ark. R. Prof. C. 1.5(c) requires the method and percentages to be stated):

☐ A single percentage of [____]% applies at all stages (use instead of the tiers above)

3. How the Fee Is Computed — Before or After Expenses

Ark. R. Prof. C. 1.5(c) requires the agreement to state whether litigation and other expenses are deducted before or after the contingent fee is calculated. The parties agree:

☐ Before deduction of expenses — the attorney's percentage is applied to the gross recovery; expenses are then deducted from the client's share.
☐ After deduction of expenses — expenses are deducted from the gross recovery first; the attorney's percentage is then applied to the net recovery.

Illustration (33⅓% fee on $100,000 recovery with $10,000 expenses)

4. Costs and Expenses

The client is responsible for litigation and other expenses, which may include:

☐ Court filing fees
☐ Service of process
☐ Deposition and transcript costs
☐ Expert witness fees and reports
☐ Medical record retrieval
☐ Investigator fees
☐ Mediation / arbitration fees
☐ Travel, reproduction, postage, and courier
☐ Other: [________________________________]

How expenses are advanced and repaid:

☐ The firm advances all expenses; the client reimburses expenses out of the recovery.
☐ The client pays expenses as incurred, regardless of outcome.
☐ Hybrid: the firm advances expenses up to $[________]; the client is responsible beyond that amount.

Expenses owed regardless of outcome (required notice under Ark. R. Prof. C. 1.5(c)):

☐ If there is no recovery, the client owes no expenses (firm absorbs them).
☐ If there is no recovery, the client remains liable for expenses advanced. The client is hereby clearly notified of this liability whether or not the client is the prevailing party.

5. Associated Counsel / Division of Fees (Ark. R. Prof. C. 1.5(e))

☐ No lawyer outside the firm will share in the fee.
☐ The fee will be divided with associated/referral counsel outside the firm. Under Ark. R. Prof. C. 1.5(e), this is permitted only if (1) the division is in proportion to services performed or, by written agreement with the client, each lawyer assumes joint responsibility; (2) the client is advised of and does not object to the participation of all the lawyers involved; and (3) the total fee is reasonable. The agreement to divide fees should be confirmed in writing.

Client acknowledgment of division: ☐ Yes — client signature in Section 11 confirms the client was advised of and does not object to the division and the shares above.

6. Matters Excluded — No Contingent Fee Permitted (Ark. R. Prof. C. 1.5(d))

A contingent fee may not be charged in certain matters. The client and attorney confirm:

☐ This matter is not a domestic relations matter in which the fee is contingent upon securing a divorce or upon the amount of alimony, support, or property settlement in lieu thereof (prohibited by Ark. R. Prof. C. 1.5(d)).
☐ This matter is not the defense of a criminal case (prohibited by Ark. R. Prof. C. 1.5(d)).

7. Statutory Caps and Special Limits (Arkansas)

☐ The percentages in Section 2 comply with applicable Arkansas law, and any workers'-comp fee will be submitted to the Commission for approval.

8. Client's Right to Terminate; Quantum Meruit and Lien

The client may discharge the attorney at any time, with or without cause, upon written notice. If the client discharges the attorney and later recovers on the matter, the attorney may be entitled to compensation in quantum meruit for the reasonable value of services rendered, and may assert an attorney's lien on the recovery to the extent permitted by Arkansas law.

9. Settlement Authority

The attorney will not settle the matter without the client's prior approval. The attorney will communicate all settlement offers. The decision to accept or reject any settlement belongs solely to the client (Ark. R. Prof. C. 1.2(a)).

10. No Recovery, No Fee; Closing Statement

No recovery, no fee. If there is no recovery, the client owes no attorney fee (expense liability is governed by Section 4).

Closing statement (required by Ark. R. Prof. C. 1.5(c)). Upon conclusion of the matter, the attorney will provide the client a written statement showing the outcome and, if there is a recovery, the remittance to the client and the method by which it was determined.

11. Signatures

By signing, the client acknowledges receipt of a copy of this agreement and agreement to its terms, including the contingent fee and the method of its computation.

Client Signature: ________________________________ Date: [__/__/____]

Client Printed Name: [________________________________]

Attorney Signature: ________________________________ Date: [__/__/____]

Attorney Printed Name / Bar No.: [________________________________]

Arkansas Practice Notes

• Rule 1.5(c) requirements. A contingent fee agreement must be in a writing signed by the client and must state the method of determining the fee, including the percentages for settlement, trial, and appeal; the litigation and other expenses to be deducted; and whether expenses are deducted before or after the fee is calculated. It must clearly notify the client of any expenses the client owes whether or not the client prevails. At conclusion, the lawyer must provide a written closing statement of the outcome and, if there is a recovery, the remittance and how it was computed.
• Prohibited matters (Rule 1.5(d)). No contingent fee in a domestic relations matter contingent on securing a divorce or on the amount of alimony/support/property settlement, and none for defending a criminal case.
• Workers' compensation. Fees are 25% of indemnity benefits, Commission-approved, with no fee on medical benefits (except as provided); when a claim is controverted, the employer/carrier pays half and the claimant pays half. Ark. Code Ann. § 11-9-715.
• No medical-malpractice cap. Arkansas has no statutory cap on the contingent-fee percentage in med-mal cases; reasonableness under Rule 1.5(a) governs. (Flag: Arkansas's history of rejected/struck damage-cap measures is evolving — verify the current constitutional and statutory landscape.)
• Fee division (Rule 1.5(e)). Arkansas's rule differs from the ABA Model Rule: division requires proportional services or written-agreement joint responsibility, and the client must be advised of and not object to the participation of all lawyers (rather than affirmatively "agree"). The Rule 1.5 comment directs that the agreement be in writing.
• Reasonableness. All fees remain subject to the reasonableness factors of Ark. R. Prof. C. 1.5(a).

Sources and References

• Arkansas Rules of Professional Conduct (Arkansas Judiciary)
• Ark. Code Ann. § 11-9-715 (workers' compensation attorney fees)
• Ark. Code Ann. § 11-9-715 (FindLaw)
• Overture Law — Arkansas Referral / Fee-Division Rule (ARPC 1.5(e))
• ABA Model Rule 1.5 — Fees (text parallel to Ark. R. Prof. C. 1.5)