Minnesota Contingency Fee Agreement with an Attorney or Law Firm

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Multi-State
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US-00442BG
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Word; 
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Description

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

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FAQ

If You Win Your Case A personal injury lawyer in Minnesota typically gets paid on a contingency fee basis. They only apply a fee if you win your case. A contingency fee is designed to keep you from paying out-of-pocket fees upfront. The fee percentage usually ranges between 30 and 40 percent.

Contingency fees mean you will pay the lawyer a certain percentage of the money you receive if you win the case or settle the matter out of court.

A typical contingency fee percentage is anywhere from 30 to 40% of your recovery. Your contingency fee agreement will set out the exact percentage. These percentages are often staggered so that your lawyer will get a higher percentage if the case goes to trial ? which requires more time and work for their law firm.

That is, generally in a contingency fee agreement, the lawyer only receives compensation if the lawyer has successfully represented the client. Further, the amount the lawyer receives is contingent upon the result the lawyer obtains and often on the phase of litigation in which the dispute settles.

Disadvantages. The main problem with a contingency fee agreement is that it could cost the plaintiff more than standard hourly rates for a lawyer if the case settles quickly. A standard contingency fee can range between 30-40% of the final award.

That said, the most common lawyer contingency fee average ends up being 33%, or ? of the total earnings of a case, but can go up to 40% (in some jurisdictions) as the complexity and risk involved in taking the case increases.

However, Model Rule 1.5(d) prohibits contingency fee agreements for domestic relations matters?such as divorce cases?and for the representation of a defendant in a criminal case. Most states, including California and New York, have adopted such prohibitions on contingent fees.

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Minnesota Contingency Fee Agreement with an Attorney or Law Firm