Contingency Fee Agreement Example

  • 3 min read
  • Feb 27, 2020

A contingency fee agreement, also known as a contingency win fee agreement, is an agreement between the employee and employer in which the employee pays the employer a certain amount of money, if and when the employee wins a case. This amount may be different from the winning wage or a portion of it, based on the amount of the case. The amount of the contingency fee is determined by the agreement between the two parties, as well as state and federal law.


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Under a contingency fee agreement, the employee will receive payment of the winning amount of the case at a predetermined date or time. This is generally agreed upon before the case is filed, but it can be agreed upon after the case has been filed. Depending on state and federal law, some states may require an attorney to represent the employee.

A contingency fee agreement is one of several types of contingency arrangements that are commonly used in many industries. It is typically used in corporate cases, including sales litigation and corporate mergers and acquisitions. Employers may include a contingency agreement as part of a companywide agreement between several managers, as an employee is being discharged. In some cases, the agreement may be entered into with a resignation letter, as the employee’s employment is ending.


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The cost of a contingency fee agreement depends on the type of case. Several factors affect the cost, including the expertise of the attorney who represents the client, whether the case is covered by indemnity insurance, and whether or not a contingency fee agreement is included in the employee’s employment contract. Other factors that may influence the amount of the contingency fee are the amount of experience and expertise of the attorney, the ability of the attorney to secure the case, and the fees that are paid to the attorney.

The fees that are charged for a contingency fee agreement may vary, depending on the nature of the case and how the employee was employed. If the case involves a claim under the Worker’s Compensation Act, then the insurance provided to the employee by the employer is a factor in determining the amount of the contingency fee. It is also possible for a contingency fee agreement to be established without a filing fee.


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Several factors will influence the outcome of a contingency fee agreement. The terms of the employment agreement may be one of them. In some cases, the terms of the employment agreement are pre-determined, but in other cases, the terms of the employment agreement may be defined by the filing of the agreement. The legal agreement between the employee and employer, as well as state and federal law, may also be a determining factor in the outcome of the contingency fee agreement.

The level of experience and expertise of the attorney who represents the employee and the complexity of the case may also affect the outcome of a contingency fee agreement. If the attorney is familiar with the specifics of the case, he or she will be able to negotiate the best value for the contingency fee agreement. If the attorney does not have the experience or expertise to negotiate the best value for the contingency fee agreement, the attorney may be able to negotiate a lower fee.


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Because of the many factors that determine the outcome of a contingency fee agreement, it is not always easy to predict what the outcome will be. Most courts do not allow contingency fees to be paid based on a percentage of the prevailing or first-dollar verdict. The state and federal law governing contingency fee agreements may also affect the outcome of the contingency fee agreement.


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