The Hybrid Contingency Fee Agreement is designed for use in Canadian legal practices where a combination of traditional hourly billing and contingency fees is appropriate for the matter at hand. This type of agreement is particularly valuable in complex litigation cases where significant upfront work is required, but the outcome remains uncertain. The document ensures compliance with provincial law society rules and relevant legislation while providing flexibility in fee arrangements. It includes detailed calculations for both fee components, mandatory client disclosures, and specific provisions for disbursements and costs. This agreement type is increasingly popular in Canadian jurisdictions as it offers a balanced approach to risk-sharing between lawyers and clients, making legal services more accessible while ensuring law firms can maintain sustainable practices. The hybrid structure can be particularly beneficial in cases involving substantial documentary evidence or complex preliminary work where pure contingency arrangements might not be suitable.
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Key Requirements PROMPT example:
Hybrid Contingency Fee Agreement
"I need a Hybrid Contingency Fee Agreement for a Canadian class action lawsuit, combining a 25% contingency fee with reduced hourly rates, and including specific provisions for multiple plaintiffs and litigation funding."
1. Parties: Identification of the law firm/lawyer and the client(s)
2. Background: Context of the legal matter and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Recovery', 'Contingency Fee', 'Hourly Rate', and 'Disbursements'
4. Scope of Legal Services: Detailed description of legal services to be provided and any limitations
5. Fee Structure: Explanation of the hybrid fee arrangement, including both hourly rates and contingency fee percentages
6. Disbursements and Other Charges: Details of disbursements, third-party costs, and how they will be handled
7. Calculation of Fees: Specific methodology for calculating total fees, including interaction between hourly and contingency components
8. Payment Terms: Timing and method of payment for both hourly and contingency portions
9. Client's Rights and Obligations: Client's responsibilities and rights under the agreement
10. Termination: Conditions and process for terminating the agreement, including fee calculations upon early termination
11. Governing Law: Specification of applicable provincial law and jurisdiction
1. Multiple Clients: Additional provisions when representing multiple clients in the same matter
2. Appeals: Fee arrangements for potential appeals or additional proceedings
3. Third-Party Funding: Provisions regarding litigation funding if applicable
4. Alternative Dispute Resolution: Provisions for handling fee disputes through mediation or arbitration
5. Insurance Coverage: Provisions relating to insurance coverage and its impact on fee calculations
6. Referral Arrangements: Details of any referral fees or arrangements with other lawyers
7. Trust Account: Specific provisions regarding handling of trust funds if required
1. Schedule A - Hourly Rate Structure: Detailed breakdown of hourly rates for different lawyers/paralegals involved
2. Schedule B - Contingency Fee Calculation: Detailed methodology and examples of contingency fee calculations
3. Schedule C - Disbursements List: Comprehensive list of anticipated disbursements and their estimated costs
4. Schedule D - Client Disclosure Statement: Mandatory disclosure statement as required by provincial law society rules
5. Schedule E - Sample Fee Calculations: Examples showing how fees would be calculated in various scenarios
6. Appendix 1 - Provincial Law Society Requirements: Specific provisions required by the relevant provincial law society
7. Appendix 2 - Client's Rights Checklist: Summary of client's rights regarding fee arrangements and legal representation
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