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Partial Contingency Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Partial Contingency Fee Agreement

"I need a Partial Contingency Fee Agreement for our tech company's intellectual property dispute, with a 20% fixed fee structure payable monthly and a 15% contingency fee on any recovery above $2 million, to be effective from January 2025."

Document background
The Partial Contingency Fee Agreement is a sophisticated legal fee arrangement used in Canadian jurisdictions when clients and lawyers wish to share the risk of litigation while maintaining some certainty in legal costs. This document type is particularly relevant in complex commercial litigation, personal injury cases, or other matters where the outcome may result in a monetary award or settlement. The agreement specifically details both a fixed fee component (either hourly rates or flat fees) and a contingency fee percentage that depends on the success of the case. It must comply with provincial law society regulations, professional conduct rules, and consumer protection legislation. The document includes mandatory disclosures, calculation methods, client protections, and specific provisions for handling disbursements and expenses. This type of agreement is often used when clients want to proceed with litigation but seek to balance upfront costs with their lawyer's incentive to achieve a favorable outcome.
Suggested Sections

1. Parties: Identifies the lawyer/law firm and the client, including full legal names and contact information

2. Background: Describes the context of the legal matter and the reason for entering into a partial contingency fee arrangement

3. Definitions: Defines key terms used throughout the agreement, including 'Success', 'Recovery', and 'Partial Contingency Fee'

4. Scope of Legal Services: Clearly outlines the legal services to be provided and any limitations or exclusions

5. Fee Structure: Details both the fixed fee component and the contingency fee percentage, including when each applies

6. Payment Terms: Specifies payment schedules for fixed fees and how contingency fees will be calculated and paid

7. Disbursements and Expenses: Lists how disbursements and expenses will be handled and who is responsible for payment

8. Billing and Accounting: Explains billing procedures, timing, and accounting practices

9. Client's Rights and Obligations: Outlines the client's responsibilities and rights under the agreement

10. Lawyer's Rights and Obligations: Details the lawyer's commitments and rights under the agreement

11. Termination: Describes circumstances under which the agreement can be terminated and the consequences

12. Governing Law: Specifies that the agreement is governed by Canadian law and applicable provincial legislation

Optional Sections

1. Multiple Party Provisions: Required when there are multiple clients involved in the same matter

2. Expert Witness Fees: Needed when expert witnesses may be required and how their fees will be handled

3. Alternative Dispute Resolution: Optional section for including mediation or arbitration provisions for fee disputes

4. Assignment and Succession: Required when there's a possibility of file transfer or lawyer succession

5. Insurance Coverage: Needed when insurance companies are involved in the recovery process

6. Third-Party Funding: Required when litigation funding may be involved

7. Appeals Process: Optional section describing fee arrangements for potential appeals

Suggested Schedules

1. Schedule A - Fee Calculation Method: Detailed breakdown of how fees will be calculated, including examples

2. Schedule B - Disbursements List: Comprehensive list of potential disbursements and their handling

3. Schedule C - Fixed Fee Services: Itemized list of services covered under the fixed fee portion

4. Schedule D - Contingency Fee Services: Itemized list of services covered under the contingency portion

5. Appendix 1 - Client Authorization Form: Standard form for client authorization and acknowledgment

6. Appendix 2 - Provincial Law Society Disclosure Form: Required statutory disclosure forms as per provincial regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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