There are various types of attorney fee arrangements such as time based, fixed, or contingent. Time based means a fee that is determined by the amount of time involved, such as so much per hour, day or week. Fixed means a fee that is based on an agreed amount, regardless of the time or effort involved or the result obtained. Contingent means a certain agreed percentage or amount that is payable only upon attaining a recovery, regardless of the time or effort involved.
With a contingent fee arrangement, the lawyer receives no fee unless money is recovered for the client. Upon recovery, the lawyer is paid an agreed-upon percentage, usually ranging from an amount equal to 25 to 50 percent of the amount recovered. A written fee agreement should specify the costs and expenses to be deducted and whether such costs and expenses are to be deducted before or after the contingent fee is calculated. Contingent fee agreements are generally not permitted for criminal cases or domestic relations matters.
Even if there is no recovery, however, the client is still responsible for court costs (filing fees, subpoena fees, etc.) and related expenses, such as telephone charges, investigators' fees, medical reports, and other costs.
This form is a fairly typical contingent fee agreement
A Maryland Contingency Fee Agreement with an Attorney or Law Firm is a legal document that establishes the terms and conditions of a lawyer-client arrangement where the attorney's fees are contingent upon the successful outcome of the case. This type of agreement is commonly used in personal injury, medical malpractice, or other civil litigation cases, allowing individuals with limited financial resources to access legal representation. In Maryland, there are different types of Contingency Fee Agreements that an individual may enter into with an attorney or law firm, depending on their specific case and needs. Some commonly known agreements include: 1. Standard Contingency Fee Agreement: This agreement outlines a percentage of the client's potential settlement or award that the attorney will receive as a fee if the case is successful. Usually, this is a percentage between 33.3% to 40% of the recovered amount. The agreement should explicitly state how other expenses, such as court costs, expert witness fees, and investigative costs, will be handled. 2. Tiered Contingency Fee Agreement: In some cases, attorneys and clients may opt for a tiered fee structure. This arrangement involves different percentages of attorney fees depending on different settlement or award amounts. For instance, the agreement may outline a lower percentage if the recovery is below a certain threshold, and a higher percentage if it surpasses that threshold. 3. Sliding Scale Contingency Fee Agreement: This type of agreement is often used when the potential settlement or award amount is uncertain or difficult to predict. It involves a sliding scale where the attorney's percentage fee increases as the recovery amount increases. This arrangement allows for a fair distribution of attorney fees and ensures both parties are adequately compensated based on the final outcome. It is crucial for both the attorney and the client to carefully review and discuss the terms and conditions of the Contingency Fee Agreement before signing it. The agreement should include provisions related to the attorney's duties, responsibilities, and the client's obligations. It should also clearly state the scope of the representation, the anticipated timeframe of the case, and any potential conflicts of interest. To ensure transparency and avoid misunderstandings, the agreement should also specify how costs and expenses will be handled, including whether the client will be responsible for upfront payment of certain expenses or if these costs will be deducted from the final recovery. In conclusion, a Maryland Contingency Fee Agreement with an Attorney or Law Firm provides an opportunity for individuals with limited financial means to access legal representation without significant upfront costs. These agreements vary depending on the specific case and can be tailored to accommodate different circumstances. However, it is essential for both parties to fully understand the agreement's terms and conditions before moving forward with the legal representation.
