Massachusetts Contingency Fee Agreement

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[13] If legal fees are awarded by a court or included in a transaction, the question arises as to how a potential tax can be properly calculated. Rule 1.5 (c) (5) and paragraph 4 of rule 1.5 (f) form agreements define the standard rule, but the parties may agree on another basis for this calculation, for example. B the application of the percentage to the entire recovery, including legal fees. (2) The unpredictability for which compensation must be compensated is the recovery of damages, whether by comparison, judgment or otherwise. This agreement and its implementation are governed by Article 1.5 of the professional rules of conduct adopted by the Massachusetts Supreme Court. [11] Paragraphs f) (1) and f) (2) contain two forms of conditional royalty agreement that can be used. Since paragraphs 3 and 7 of Form A do not contain alternative provisions, a lawyer using Form A is not required to provide a specific explanation to the client. Paragraphs (2), 3 and 7 of Form B are different from Form A. While in most cases of events, compensation is prudent, the recovery of damages, paragraph 2 of Form B, allows lawyers and clients to accept other legitimate contingencies. A lawyer is not required to make a specific statement if paragraph 2 is used. Paragraphs 3 and 7 of Form B provide options for paying fees and expenses, as well as paying reasonable legal fees and fees to former legal advisors.

In order to ensure that a client knowingly accepts the agreed option, a lawyer using Form B must retain both options in the form of paragraph 3 and, if applicable, paragraph 7; Post and explain these options to the customer. and obtain the client`s written consent to the chosen option. A fee may depend on the outcome of the case for which the service is provided, unless a contingency tax is prohibited by paragraph d or any other law. With the exception of contingency cost agreements for the recovery of commercial accounts and rights to the assignment of insurance companies, a conditional royalty agreement must be signed in writing and by the lawyer and client in two copies within a reasonable time after the conclusion of the contract. Such a copy (and proof that the duplicate copy was delivered or sent to the client) is kept by counsel for a period of six years after the completion of the contingency tax. The writing states: (4) the possibility that compensation is paid, whether and to what extent the client must pay compensation that is not paid by counsel, and when the lawyer must pay a fee for representation that is not determined by a contingency, the method by which this tax is set; Section 60I. Legal fees for benefits performed on behalf of a plaintiff or defendant in a medical negligence case are reasonable and reasonable. A lawyer representing a complainant may charge a client a contingency fee that is subject to the rules and guidelines of the High Court.

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