The Contingency Fee Agreement is a crucial document used in Belgian legal practice to establish fee arrangements between attorneys and clients where part of the fee is tied to the successful outcome of a legal matter. While Belgian law prohibits pure contingency fee arrangements, it allows for success fees as part of the total fee structure. This document is typically used when clients seek legal representation but prefer a fee structure that aligns the attorney's compensation with the case outcome. The agreement must carefully balance the requirements of the Belgian Judicial Code, Bar Association regulations, and professional ethics codes while providing clear terms for both parties. It includes detailed provisions on fee calculations, success criteria, payment terms, and the handling of costs and expenses. This type of agreement is particularly relevant in litigation matters, corporate disputes, and other cases where the outcome can be clearly defined and measured.
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1. Parties: Identification of the Attorney/Law Firm and the Client with full legal names and addresses
2. Background: Context of the legal matter and the reason for entering into the agreement
3. Definitions: Key terms used in the agreement including 'Success', 'Base Fee', 'Success Fee', 'Costs', and 'Legal Matter'
4. Scope of Services: Detailed description of the legal services to be provided and the specific matter being handled
5. Fee Structure: Breakdown of the base fee and success fee components, including percentages and calculations
6. Payment Terms: Timing and method of payment for both base fees and success fees
7. Costs and Expenses: Description of additional costs and expenses, their handling and payment responsibility
8. Client's Obligations: Client's responsibilities including providing information and cooperation
9. Attorney's Obligations: Attorney's professional responsibilities and service commitments
10. Termination: Conditions and process for terminating the agreement, including fee calculations upon termination
11. Governing Law: Specification of Belgian law as governing law and relevant jurisdictional provisions
12. Signatures: Execution block for all parties
1. Multiple Parties: Additional provisions for cases involving multiple clients or multiple attorneys
2. Legal Expenses Insurance: Provisions regarding the interaction with legal expenses insurance if the client has coverage
3. Conflict Resolution: Specific procedures for handling disputes between attorney and client
4. Third Party Funding: Provisions regarding any third-party litigation funding arrangements
5. International Elements: Additional provisions for cases involving cross-border elements
6. VAT Provisions: Detailed VAT handling where applicable
7. Assignment: Provisions regarding the transfer of rights and obligations under the agreement
1. Schedule 1 - Fee Calculation: Detailed breakdown of fee calculations and examples
2. Schedule 2 - Scope of Work: Detailed description of the legal matter and specific services to be provided
3. Schedule 3 - Costs Schedule: Itemized list of anticipated costs and expenses
4. Appendix A - Client Information Form: Client details and matter-specific information
5. Appendix B - Power of Attorney: Standard power of attorney form if required for the case
6. Appendix C - Document Checklist: List of required documents and information to be provided by the client
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