Contingency Fee Agreement - Delaware

CONTINGENCY FEE AGREEMENT (DELAWARE)

Parties and Engagement

Date of Agreement: [__/__/____]

The Client acknowledges receipt of a signed copy of this Agreement.

1. Scope of Representation

The Client retains the Attorney to represent the Client in the following matter:

Nature of Claim: [________________________________]

Adverse Party / Defendant(s): [________________________________]

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

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

Court / Venue: [________________________________]

This representation ☐ includes / ☐ does not include appeals and post-judgment proceedings.

2. The Contingent Fee — Method of Determination (RPC 1.5(c))

The Attorney's fee is contingent on the outcome of the matter and is stated as a percentage of the recovery. The method by which the fee is determined is as follows.

Base contingent fee: [____]%

☐ Single percentage (above), OR ☐ Tiered by stage:

"Recovery" means the total amount recovered by settlement, judgment, or award.

3. Fee Computed on Gross or Net — Expenses Deducted Before or After

The contingent-fee percentage is applied (indicate which):

☐ Before deduction of litigation and other expenses (percentage applied to gross recovery; expenses then deducted from the Client's share).
☐ After deduction of litigation and other expenses (expenses deducted from gross recovery first; percentage then applied to the net).

4. Costs and Expenses — Client's Liability Whether or Not Prevailing (RPC 1.5(c))

The Client will be responsible for the following litigation and other expenses:
☐ Court filing fees ☐ Service of process ☐ Deposition / transcript costs ☐ Expert witness fees and reports ☐ Medical records retrieval ☐ Investigation ☐ Mediation / arbitration fees ☐ Document reproduction ☐ Other: [________________]

Cost advance policy:
☐ The firm advances all costs; the Client reimburses from the recovery.
☐ The Client is responsible for costs as incurred, regardless of outcome.
☐ Hybrid: firm advances up to $[____]; Client responsible beyond that amount.

Notice of expenses owed regardless of outcome (required by RPC 1.5(c)): The Client is hereby clearly notified that the Client ☐ will / ☐ will not be liable for the following expenses whether or not the Client is the prevailing party: [________________________________].

5. Associated / Referral Counsel — Division of Fees (RPC 1.5(e))

A division of fee between lawyers who are not in the same firm may be made only if: (1) the Client is advised in writing of and does not object to the participation of all the lawyers involved; and (2) the total fee is reasonable.

☐ Associated/referral counsel involved: [________________] — the Client has been advised in writing and does not object. The total fee is reasonable and is not increased by reason of the division.

6. Excluded / Prohibited Contingent Fee Matters (RPC 1.5(d))

A contingent fee may not be charged in the following matters, and this Agreement confirms it does not apply to them:
☐ Any domestic relations matter where the payment or amount is contingent upon securing a divorce or upon the amount of alimony, support, or property settlement in lieu thereof.
☐ The defense of a criminal case.

7. Settlement Authority

The Attorney will communicate all settlement offers to the Client. The decision to accept or reject any settlement belongs solely to the Client (RPC 1.2(a)). The Attorney will not settle without the Client's authorization.

8. No Recovery — No Fee

If there is no recovery, the Client owes no attorney fee.
☐ The Client remains responsible for expenses advanced (consistent with the notice in Section 4), OR
☐ The firm absorbs advanced expenses if there is no recovery.

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

The Client may discharge the Attorney at any time. If the Client terminates this Agreement and later recovers on the claim, the Attorney may be entitled to compensation on a quantum meruit basis for the reasonable value of services rendered before discharge, subject to applicable Delaware law, and the Attorney may assert a charging lien against the proceeds to the extent permitted by law.

10. Liens and Subrogation

The Client acknowledges the recovery may be subject to:
☐ Medical / provider liens ☐ Health insurer subrogation ☐ Medicare / Medicaid liens (42 U.S.C. § 1395y(b)) ☐ Workers' compensation liens ☐ Other: [________________]

The Attorney will endeavor to negotiate and resolve liens from the recovery; the Client remains ultimately responsible for satisfying all valid liens.

11. Closing Statement (RPC 1.5(c))

Upon conclusion of this contingent-fee matter, the Attorney will provide the Client with a written statement stating the outcome and, if there is a recovery, showing the remittance to the Client and the method of its determination.

12. Signatures

By signing, the Client confirms understanding of and agreement to this contingency fee arrangement.

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

Client Printed Name: [________________________________]

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

Attorney Printed Name & Bar ID: [________________________________]

Delaware Practice Notes

• RPC 1.5(c) writing requirement. A contingent fee agreement must be in a writing signed by the client and must state the method by which the fee is determined, including the percentage(s) that accrue on settlement, trial, or appeal; the litigation and other expenses to be deducted from the recovery; and whether expenses are deducted before or after the fee is calculated. The agreement must clearly notify the client of any expenses for which the client will be liable whether or not the client is the prevailing party.
• Closing statement. Upon conclusion of a contingent-fee matter, the lawyer must provide the client a written statement of the outcome and, if there is a recovery, the remittance and the method of its determination (RPC 1.5(c)).
• No general statutory cap. Delaware imposes no statutory percentage cap or sliding scale on contingent fees in ordinary tort/personal injury matters. The percentage is negotiable, subject to the RPC 1.5(a) reasonableness factors.
• Prohibited matters — RPC 1.5(d). No contingent fee in (1) a domestic relations matter where payment/amount is contingent on securing a divorce or on the amount of alimony/support/property settlement, or (2) the defense of a criminal case.
• Fee division — RPC 1.5(e). Delaware uses the older, more permissive formulation: a division between lawyers in different firms is permitted only if the client is advised in writing of and does not object to the participation of all the lawyers and the total fee is reasonable. Delaware does not require strict proportionality to services performed.
• Advance fees / refundability — RPC 1.5(f). For fees paid in advance, Delaware requires a written statement that the fee is refundable if not earned, a statement of the basis on which fees are earned, and that unearned fees be held in the trust account. (This template's no-recovery-no-fee structure generally avoids advance fees, but note the rule if a hybrid arrangement is used.)
• Workers' compensation. Attorney fees in Delaware workers' compensation matters are subject to approval by the Industrial Accident Board under 19 Del. C. § 2127 and are not governed by a freely negotiated contingent percentage; verify current Board practice and statutory limits.
• Unsettled / verify: Confirm the current Delaware Supreme Court text of RPC 1.5 (the Court periodically conforms Delaware rules toward the Model Rules; the fee-division and advance-fee provisions in particular should be re-verified) and current workers' comp fee limits under 19 Del. C. § 2127.

Sources and References

• Del. Lawyers' Rules of Prof'l Conduct, Rule 1.5 (Delaware Courts form)
• Delaware Lawyers' Rules of Professional Conduct (full text, DE Professional Insurance Council)
• Rule 1.5 Fees, Delaware Lawyers' Rules of Professional Conduct (effective July 1, 2003)
• ABA Model Rule 1.5 — Fees (comparison)
• 19 Del. C. § 2127 (Workers' Compensation attorney fees)