Partial Contingency Fee Agreement

Partial Contingency Fee Agreement for the United Kingdom

Partial Contingency Fee Agreement Template for England and Wales

A Partial Contingency Fee Agreement is a hybrid fee arrangement under English and Welsh law where part of the legal fees are paid on a fixed basis and part are contingent upon success. This agreement structure allows for risk-sharing between the law firm and client while ensuring some guaranteed payment for legal services. It combines elements of traditional fee arrangements with performance-based compensation, typically used in litigation or dispute resolution matters where there is a quantifiable outcome.

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Partial Contingency Fee Agreement

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What is a Partial Contingency Fee Agreement?

Partial Contingency Fee Agreements are commonly used in England and Wales when clients seek to manage legal costs while maintaining access to justice. This hybrid fee structure provides flexibility by combining traditional fixed fees with performance-based elements, making legal services more accessible while ensuring law firms receive some guaranteed compensation. The agreement typically details payment structures, success criteria, risk allocation, and termination provisions, all while complying with relevant legislation including the Courts and Legal Services Act 1990 and associated regulations.

What sections should be included in a Partial Contingency Fee Agreement?

1. Parties: Identification of the law firm and client

2. Background: Context of the agreement and nature of the legal matter

3. Definitions: Key terms used throughout the agreement including 'Success', 'Contingency Fee', and 'Basic Fees'

4. Scope of Services: Details of legal services to be provided under this agreement

5. Fee Structure: Breakdown of fixed fees and contingency elements, including percentages and calculation methods

6. Success Criteria: Clear definition of what constitutes success for contingency purposes

7. Payment Terms: Timing and method of payment, including treatment of disbursements

8. Client Obligations: Client's responsibilities and duties throughout the engagement

9. Termination: Circumstances and process for ending the agreement, including payment obligations

What sections are optional to include in a Partial Contingency Fee Agreement?

1. Insurance Arrangements: Details of any after-the-event insurance arrangements when required

2. Third Party Funding: Details of any external funding arrangements when applicable

3. Counsel's Fees: Arrangements for barrister fees when counsel will be instructed

What schedules should be included in a Partial Contingency Fee Agreement?

1. Schedule 1 - Fee Calculation: Detailed breakdown of fee structure and calculations including examples

2. Schedule 2 - Excluded Services: List of services not covered by the agreement

3. Appendix A - Risk Assessment: Assessment of case prospects and associated risks

4. Appendix B - Client Care Information: Standard client care information required by the Solicitors Regulation Authority

Authors

Alex Denne

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