Fee Agreement - Flat Fee (Personal Injury)

FEE AGREEMENT -- FLAT FEE (PERSONAL INJURY -- LIMITED SCOPE)

IMPORTANT NOTICE TO CLIENT

Please read this entire agreement carefully before signing.

This is a flat fee agreement for limited-scope personal injury services. Most personal injury cases are handled on a contingency fee basis (where the attorney's fee is a percentage of the recovery). A flat fee arrangement is appropriate only for defined, limited services such as demand letter preparation, insurance negotiation, or case evaluation -- not full litigation representation.

You have the right to:

• Consult with another attorney before signing this agreement
• Ask questions about any provision you do not understand
• Negotiate the terms of this agreement
• Terminate representation at any time, subject to the terms below

Under ABA Model Rule 1.5, a lawyer's fee must be reasonable. Under ABA Model Rule 1.2(c), a lawyer may limit the scope of representation if the limitation is reasonable under the circumstances and the client gives informed consent.

1. PARTIES

Attorney/Firm:
[________________________________]
[________________________________] (Address)
[________________________________] (City, State, ZIP)
[________________________________] (Phone)
[________________________________] (Email)
State Bar No.: [________________________________]

Client:
[________________________________]
[________________________________] (Address)
[________________________________] (City, State, ZIP)
[________________________________] (Phone)
[________________________________] (Email)

Date of Agreement: [__/__/____]

2. DESCRIPTION OF MATTER

Type of Claim: Personal injury arising from [________________________________]
Date of Incident: [__/__/____]
Location of Incident: [________________________________]
Adverse Party/Insurer: [________________________________]
Insurance Claim No.: [________________________________]
Statute of Limitations Expiration (estimated): [__/__/____]

IMPORTANT -- STATUTE OF LIMITATIONS WARNING: Client acknowledges that personal injury claims are subject to statutes of limitations that vary by state and claim type. If the services under this agreement do not resolve the matter and Client does not retain counsel for litigation before the statute of limitations expires, Client may permanently lose the right to pursue the claim. Unless otherwise agreed in writing in Section 3 below, the Firm does NOT undertake responsibility for monitoring or protecting the statute of limitations.

3. SCOPE OF FLAT FEE SERVICES

The flat fee covers ONLY the services checked below. Services not checked are excluded from this agreement and are not covered by the flat fee.

Included Services (check all that apply):

☐ Initial Case Evaluation: Consultation and written case assessment (up to [____] hours), including preliminary liability and damages analysis
☐ Medical Records Collection: Requesting, obtaining, and organizing medical records and bills from up to [____] providers
☐ Medical Records Review: Reviewing and summarizing medical records for demand preparation
☐ Demand Letter Preparation: Drafting and sending a written demand package to [________________________________] (insurer/adverse party), including medical summary, liability analysis, and damages calculation
☐ Insurance Negotiation: Up to [____] rounds of negotiation communications (written and/or telephone) with [________________________________] following demand submission
☐ Lien Identification and Negotiation: Identifying health insurance subrogation interests, Medicare/Medicaid liens, and medical provider liens, and making up to [____] attempts to negotiate reductions
☐ Settlement Documentation: Preparing settlement agreement and release, disbursement statement, and processing settlement funds through trust account
☐ Property Damage Claim Assistance: Preparing and submitting property damage claim to insurer
☐ Uninsured/Underinsured Motorist Claim: Preparing and submitting UM/UIM claim to Client's own insurer
☐ Case File Organization and Transfer: If litigation is needed, organizing and transferring the file to litigation counsel
☐ Other: [________________________________]

Excluded Services (NOT included in flat fee):

The following services are expressly excluded from this agreement and will require a separate written fee agreement (which may be a contingency fee agreement):

☐ Filing a lawsuit, arbitration demand, or administrative complaint
☐ Discovery (interrogatories, depositions, requests for production, subpoenas)
☐ Court appearances, hearings, or trial preparation and attendance
☐ Appellate proceedings
☐ Monitoring or protecting the statute of limitations (unless checked above)
☐ Responding to any lawsuit filed by an adverse party
☐ Negotiations exceeding the number of rounds specified above
☐ Medical records from providers beyond the number specified above
☐ Expert witness retention or consultation (medical, accident reconstruction, etc.)
☐ Pursuing bad faith claims against an insurer
☐ Workers' compensation claims (separate specialized representation required)

4. FLAT FEE AMOUNT AND PAYMENT TERMS

Fee Amount

Total Flat Fee: $[________]

Payment Schedule

Trust Account Treatment (ABA Model Rule 1.15)

Select one, consistent with applicable state rules:

☐ Option A -- Deposit to Trust (Default under most state rules): All flat fee payments will be deposited into the Firm's client trust account (IOLTA or equivalent) and transferred to the Firm's operating account as earned upon completion of defined milestones as follows:

☐ Option B -- Earned Upon Receipt (where permitted by state rules): With Client's informed written consent, the flat fee shall be deemed earned upon receipt and deposited directly into the Firm's operating account. Client understands that: (a) Client has the right to require that the fee be held in trust until earned (ABA Model Rule 1.15 Comment [3]); (b) any unearned portion will be refunded if representation terminates before completion; and (c) this option is available only in jurisdictions that permit earned-upon-receipt flat fees with appropriate disclosure.

Client's election (initial one):
_____ Option A (Trust) / _____ Option B (Earned Upon Receipt)

Practice Tip for Attorneys: Trust account treatment of flat fees varies significantly by state. Many states (including Colorado, Oregon, and others) require flat fees to be held in trust until earned. Some states (e.g., under ABA Formal Ethics Opinion 505 (2023)) permit earned-upon-receipt treatment with adequate written disclosure and client consent. Always confirm your jurisdiction's rule before selecting Option B.

5. COSTS AND EXPENSES

The flat fee does NOT include costs and expenses. Client is responsible for the following costs, which will be billed separately:

Cost Advance Deposit (if applicable): $[________] to be deposited into the Firm's trust account and applied to costs as incurred. Any unused cost deposit will be refunded at the conclusion of the matter.

6. STATUTE OF LIMITATIONS AND DEADLINE RESPONSIBILITY

Deadline Monitoring (select one):

☐ Option A -- Firm Monitors Statute of Limitations: The Firm will track the applicable statute of limitations and will notify Client in writing at least [____] days before expiration if the matter has not been resolved. Client understands this does not guarantee that the Firm will file suit; a separate litigation agreement would be required.

☐ Option B -- Client Responsible for All Deadlines (Default): The Firm does NOT undertake responsibility for monitoring the statute of limitations or any other legal deadlines. Client is solely responsible for consulting with litigation counsel if the matter is not resolved within a reasonable time and before any applicable deadline expires.

Client acknowledges and understands (initial each):

_____ I understand that personal injury claims have time limits (statutes of limitations) that vary by state and type of claim, and that missing these deadlines may permanently bar my claim.

_____ I understand that under Option B, the Firm is NOT responsible for tracking or protecting any statute of limitations or filing deadline.

_____ I have been advised of the estimated statute of limitations expiration date listed in Section 2 and understand it is an estimate only.

7. MEDICAL RECORDS, LIENS, AND SUBROGATION

Medical Record Authorization

Client authorizes the Firm to:

• Request, obtain, and review medical records and billing statements from treating providers
• Communicate with medical providers regarding treatment, charges, and liens
• Execute HIPAA-compliant medical record authorization forms

Client will execute a separate HIPAA authorization form (attached as Exhibit A or to be provided).

Lien and Subrogation Identification

Client understands that the following liens or subrogation interests may apply to any recovery:

☐ Health insurance subrogation (ERISA-governed plans or state-law plans)
☐ Medicare conditional payments (42 U.S.C. § 1395y(b)(2))
☐ Medicaid liens (state Medicaid agency)
☐ Medical provider liens (hospital liens, doctor's liens)
☐ Workers' compensation liens
☐ Child support or other government liens
☐ Veterans Administration (VA) benefits
☐ TRICARE / military benefits

The Firm will make reasonable efforts to identify applicable liens and, if included in the scope of services, negotiate reductions. However, the Firm does not guarantee any lien reduction. Client is ultimately responsible for satisfying all liens from any recovery.

Practice Tip for Attorneys: Medicare Secondary Payer compliance (42 U.S.C. § 1395y(b)(2)) requires that conditional payments be reimbursed from any settlement. Failure to address Medicare liens can result in personal liability for the attorney. Always query the Medicare Benefits Coordination & Recovery Center (BCRC) early in the representation.

8. COMMUNICATION AND CLIENT OBLIGATIONS (ABA Model Rule 1.4)

Attorney Communication Obligations

The Firm will:

• Promptly inform Client of any settlement offer, communication from the adverse party, or material development
• Respond to Client inquiries within [____] business days
• Provide copies of all material correspondence sent or received on Client's behalf
• Consult with Client regarding the means by which Client's objectives are to be pursued

Client Obligations

Client agrees to:

• Provide complete, accurate, and truthful information about the incident, injuries, treatment, and prior claims
• Promptly respond to the Firm's requests for information or documentation
• Promptly inform the Firm of any changes in medical treatment, address, phone number, or employment
• Not communicate directly with the adverse party or their insurer regarding the claim without consulting the Firm
• Preserve all evidence related to the claim (photographs, clothing, vehicle, records, electronic data)
• Disclose all prior claims, lawsuits, injuries, or pre-existing conditions that may be relevant
• Cooperate in lien identification by providing health insurance information, Medicare/Medicaid status, and workers' compensation history

9. SETTLEMENT AUTHORITY

Client retains the exclusive right to accept or reject any settlement offer. Under ABA Model Rule 1.2(a), a lawyer shall abide by a client's decision whether to settle a matter.

The Firm will:

• Communicate all settlement offers to Client promptly, along with the Firm's professional assessment
• Explain the advantages and disadvantages of each offer
• Prepare a written disbursement statement showing: gross settlement, flat fee, costs, lien payments, and net to Client
• Not accept or reject any offer without Client's express authorization

10. IF LITIGATION BECOMES NECESSARY

If pre-suit efforts do not resolve the claim and litigation becomes necessary or advisable:

☐ Option A -- Separate Litigation Agreement: The Firm may offer to represent Client in litigation under a separate contingency fee agreement. Client is not obligated to retain the Firm for litigation and may seek other counsel.

☐ Option B -- Referral to Litigation Counsel: The Firm will assist Client in identifying qualified litigation counsel in the relevant jurisdiction. Any referral fee arrangements will comply with ABA Model Rule 1.5(e) (division of fees) and applicable state rules, and will require Client's written consent.

☐ Option C -- File Transition Only: The Firm will organize and transfer the case file to Client or Client's new attorney upon request.

The Firm will provide Client with a written summary of the case status, all relevant deadlines (to the extent known), and all original documents upon transition.

11. TERMINATION OF REPRESENTATION (ABA Model Rule 1.16)

Client's Right to Terminate

Client may terminate this agreement at any time, with or without cause, by written notice to the Firm.

Firm's Right to Withdraw

The Firm may withdraw from representation if:

• Client fails to cooperate or provide requested information
• Client fails to pay the flat fee or costs as agreed
• Client engages in conduct that makes continued representation unreasonably difficult
• A conflict of interest arises that cannot be resolved
• Other grounds exist under ABA Model Rule 1.16(b) or applicable state rules

The Firm will provide reasonable notice before withdrawal and will comply with any court rules regarding withdrawal of counsel.

Refund Upon Termination

Upon termination by either party:

• If Option A (Trust) was selected: Any unearned portion of the flat fee remaining in trust will be refunded to Client within [____] business days, after deducting the reasonable value of services actually performed based on the milestone schedule in Section 4
• If Option B (Earned Upon Receipt) was selected: The Firm will refund any unearned portion within [____] business days, calculated based on the reasonable value of services actually performed
• All costs advanced from Client funds will be accounted for and any unused cost deposits will be refunded
• The Firm will provide a final accounting of all fees and costs

12. DISPUTE RESOLUTION

Fee Dispute Resolution

If a dispute arises regarding fees or costs under this agreement:

1. Mandatory Fee Arbitration (if available): The parties agree to submit the dispute to the local bar association's fee arbitration program, if one exists, before initiating litigation. Many states require attorneys to participate in mandatory fee arbitration upon client request (e.g., Cal. Bus. & Prof. Code § 6200 et seq.; N.Y. Part 137).

2. Mediation: If no mandatory fee arbitration program is available, or if arbitration does not resolve the dispute, the parties agree to mediate the dispute before a mutually agreed mediator before initiating litigation.

3. Governing Law and Venue: This agreement is governed by the laws of the State of [________________________________]. Venue for any legal proceeding shall be in [________________________________] County, [________________________________].

Malpractice Claims

Nothing in this agreement limits Client's right to pursue a malpractice claim. The Firm maintains professional liability insurance. Client's right to file a bar complaint is not affected by this agreement.

13. ADDITIONAL PROVISIONS

Entire Agreement

This agreement constitutes the entire agreement between the parties regarding the matters addressed herein and supersedes all prior oral or written agreements. Any modification must be in writing and signed by both parties.

No Guarantee of Outcome

The Firm makes no guarantee regarding the outcome of this matter, including whether a settlement will be obtained or the amount of any recovery. Past results do not guarantee future outcomes.

File Retention

Upon conclusion of the matter, the Firm will retain the file for [____] years in accordance with applicable rules and then may destroy it after providing Client with [____] days' notice and an opportunity to retrieve the file.

Electronic Communication Consent

☐ Client consents to communication via unencrypted email at the address listed above
☐ Client consents to communication via text message at the phone number listed above
☐ Client prefers all communications be sent via: [________________________________]

14. STATE-SPECIFIC REQUIREMENTS AND DISCLOSURES

The following disclosures may be required by applicable state rules. Check and complete all that apply:

California (Cal. Rules of Prof. Conduct 1.5; Bus. & Prof. Code § 6148)

☐ This agreement complies with Cal. Bus. & Prof. Code § 6148 (fee agreements for services exceeding $1,000)
☐ Client has been informed that a fee is unconscionable if it is so exorbitant and wholly disproportionate to the services performed as to shock the conscience (Cal. Rules of Prof. Conduct 1.5(a))
☐ Client has the right to seek fee arbitration under Cal. Bus. & Prof. Code § 6200

New York (N.Y. Rules of Prof. Conduct 1.5; 22 NYCRR Part 1215)

☐ This agreement complies with 22 NYCRR Part 1215 (written letter of engagement required)
☐ Client has been advised of the right to fee arbitration under 22 NYCRR Part 137
☐ If this matter involves medical malpractice, the fee schedule under N.Y. Judiciary Law § 474-a has been discussed

Texas (Tex. Disciplinary Rules of Prof. Conduct 1.04)

☐ Client has been informed that contingent fees are an alternative fee arrangement for personal injury claims
☐ A fee is unconscionable if a competent lawyer could not form a reasonable belief that the fee is reasonable

Florida (Fla. Bar Rule 4-1.5)

☐ Client has been informed that Florida has specific rules governing contingency fees in personal injury matters (Fla. Bar Rule 4-1.5(f))
☐ Client has been informed of the right to fee arbitration under the Florida Bar's fee arbitration program
☐ The Florida Statement of Client's Rights has been provided to Client

15. ACKNOWLEDGMENTS AND SIGNATURES

By signing below, Client acknowledges:

☐ I have read and understand this entire agreement
☐ I have had the opportunity to ask questions and have them answered to my satisfaction
☐ I understand this is a limited-scope, flat fee arrangement and NOT a contingency fee agreement
☐ I understand the services that are included and excluded from this agreement
☐ I understand the risks of limited-scope representation, including the potential loss of my claim if deadlines are missed
☐ I have been advised that I may consult with another attorney before signing
☐ I have received a copy of this signed agreement

SIGNATURES

CLIENT:

_________________________________          Date: _______________
[Client Name]


ATTORNEY:

_________________________________          Date: _______________
[Attorney Name]
[Firm Name]
State Bar No. [____________]

EXHIBIT A: HIPAA AUTHORIZATION FOR RELEASE OF MEDICAL RECORDS

(Attach separate HIPAA-compliant authorization form)

PRACTICE TIPS

1. Why Flat Fee for PI? Flat fee arrangements in personal injury cases are uncommon but appropriate for limited, defined services such as demand letter preparation, insurance negotiation, or case evaluation. They are most suitable for minor injury cases, clear liability scenarios, or situations where the client wants a cost-certain engagement for pre-suit work only. Always explain to the client why a flat fee (rather than contingency) is being proposed.

2. Trust Account Compliance: The treatment of flat fees in trust is one of the most frequently litigated ethics issues. Under ABA Model Rule 1.15, advance fees generally must be placed in trust until earned. Some jurisdictions (e.g., Colorado RPC 1.15(f); D.C. Rule 1.15(e)) allow "earned upon receipt" treatment with proper disclosure and consent. ABA Formal Ethics Opinion 505 (2023) provides guidance. Always check your state's specific rule.

3. Scope Limitation Risks: Under ABA Model Rule 1.2(c), limited-scope representation is permissible if (a) the limitation is reasonable under the circumstances, and (b) the client gives informed consent. The biggest risk in limited-scope PI work is the statute of limitations. If the Firm is not monitoring it, the agreement must clearly state that responsibility lies with the Client, and the attorney should document this disclosure thoroughly.

4. Informed Consent Documentation: Over-document informed consent. Use checkboxes, initials, and clear language. If a client later disputes the scope of representation, comprehensive informed consent documentation is the attorney's best defense.

5. Lien Compliance: Even in limited-scope pre-suit work, attorneys must address liens. Medicare Secondary Payer Act compliance (42 U.S.C. § 1395y(b)(2)) applies to any settlement, regardless of whether litigation was filed. ERISA-governed health plans may assert full subrogation rights regardless of state anti-subrogation laws. See Montanile v. Bd. of Trustees, 577 U.S. 136 (2016).

6. Fee Reasonableness: Under ABA Model Rule 1.5(a), factors for determining fee reasonableness include: time and labor required, novelty and difficulty of the questions involved, skill required, fee customarily charged in the locality, amount involved and results obtained, and experience and reputation of the lawyer. Document how the flat fee amount was determined.

7. Transition to Litigation: If the case requires litigation, clearly document the transition. The flat fee agreement terminates; a new contingency fee agreement begins. The client should not be charged twice for the same work. Consider crediting a portion of the flat fee toward the contingency arrangement if the pre-suit demand work substantially contributed to the litigation posture.

8. State Fee Caps and Regulations: Some states regulate attorney fees in personal injury cases. Florida (Fla. Bar Rule 4-1.5(f)) has specific contingency fee schedules and limitations. New York (Judiciary Law § 474-a) has sliding scale requirements for medical malpractice. California requires written fee agreements for engagements over $1,000 (Bus. & Prof. Code § 6148). Always verify compliance with state-specific requirements.

SOURCES AND REFERENCES

• ABA Model Rules of Professional Conduct 1.2(c), 1.4, 1.5, 1.15, 1.16
• ABA Formal Ethics Opinion 505 (2023) (Flat Fees and Trust Accounting)
• Cal. Rules of Prof. Conduct 1.5; Cal. Bus. & Prof. Code §§ 6147, 6148, 6200 et seq.
• N.Y. Rules of Prof. Conduct 1.5; 22 NYCRR Part 137; Part 1215
• Tex. Disciplinary Rules of Prof. Conduct 1.04
• Fla. Bar Rule 4-1.5
• 42 U.S.C. § 1395y(b)(2) (Medicare Secondary Payer)
• Montanile v. Bd. of Trustees, 577 U.S. 136 (2016) (ERISA Subrogation)