The Hybrid Contingency Fee Agreement is designed for use in the Philippine legal market where clients and attorneys seek to balance cost certainty with performance-based compensation. This document type is particularly valuable for complex commercial litigation, corporate disputes, or significant civil cases where traditional pure contingency or fixed fee arrangements may not adequately serve both parties' interests. The agreement must comply with Philippine law, including the Civil Code, Code of Professional Responsibility, and Supreme Court jurisprudence on attorney fees. It typically includes detailed provisions on fee calculation methods, payment triggers, scope of services, and risk allocation between parties. The hybrid structure offers clients partial cost predictability through the fixed component while maintaining attorney motivation through the contingency element.
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1. Parties: Identification of the Attorney/Law Firm and the Client, including complete details and capacities
2. Background: Context of the legal matter and reason for engagement
3. Definitions: Key terms used throughout the agreement, including 'Recovery Amount', 'Fixed Fee Component', 'Contingency Fee Component', and 'Costs'
4. Scope of Legal Services: Detailed description of legal services to be provided, including specific matters and exclusions
5. Fee Structure: Breakdown of hybrid fee arrangement, including fixed fee amounts and contingency percentage
6. Payment Terms: Timing and method of payments for both fixed and contingency components
7. Costs and Expenses: Allocation of responsibility for litigation costs and other expenses
8. Termination: Conditions and procedures for terminating the agreement, including fee calculations upon early termination
9. Client's Rights and Obligations: Client's responsibilities and rights throughout the representation
10. Attorney's Rights and Obligations: Attorney's commitments and professional obligations
11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of forum
12. Entire Agreement: Integration clause and procedure for modifications
1. Conflict Resolution: Optional section detailing mediation or arbitration procedures for fee disputes
2. Associated Counsel: Include when there's possibility of engaging other attorneys, detailing fee sharing arrangements
3. Insurance Coverage: Include when legal services relate to insurance claims or coverage
4. Referral Arrangements: Include when case involves referral fees or arrangements with other attorneys
5. Success Metrics: Include when contingency calculations depend on specific outcome metrics
6. Client Authority: Include when client is an organization or representing others
7. Confidentiality: Detailed confidentiality terms when case involves sensitive information
1. Schedule A - Fee Calculation Examples: Examples showing how fees will be calculated in various scenarios
2. Schedule B - Scope of Work: Detailed breakdown of legal services covered under the agreement
3. Schedule C - Fixed Fee Payment Schedule: Timeline and amounts for fixed fee payments
4. Schedule D - Authorized Representatives: List of authorized representatives who can give instructions (if client is an organization)
5. Appendix 1 - Costs and Disbursements: Detailed list of anticipated costs and how they will be handled
6. Appendix 2 - Related Cases: List of related cases or matters if applicable
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