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Mixed Contingency Fee Agreement Template for Canada

This Mixed Contingency Fee Agreement is a Canadian legal document that establishes a hybrid fee arrangement between a lawyer or law firm and their client. It combines traditional hourly billing or fixed fees with a contingency fee component, providing flexibility in legal fee structures. The agreement complies with Canadian provincial law society requirements and includes detailed provisions for fee calculations, disbursements, and client rights. It specifically addresses both the percentage-based contingency portion and the standard fee portion of the arrangement, making it suitable for complex litigation matters where different fee structures may be appropriate for different aspects of the legal work.

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What is a Mixed Contingency Fee Agreement?

The Mixed Contingency Fee Agreement is designed for use in Canadian legal practice where a combination of fee arrangements is appropriate for a single matter. This document is typically used when certain aspects of legal work are better suited to traditional billing methods while others warrant a contingency arrangement. For example, initial investigation or routine matters might be billed hourly, while the litigation portion is handled on a contingency basis. The agreement must comply with provincial law society rules and regulations regarding fee arrangements, including specific requirements for contingency fee agreements. It includes comprehensive details about fee calculations, timing of payments, treatment of disbursements, and client rights and obligations. This type of agreement is particularly useful in complex litigation matters, class actions, or cases where the client requires flexibility in fee arrangements to ensure access to justice.

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

1. Parties: Identification of the law firm/lawyer and the client

2. Background: Context of the legal matter and reason for engagement

3. Definitions: Key terms used throughout the agreement

4. Scope of Legal Services: Detailed description of legal services to be provided

5. Contingency Fee Structure: Details of the percentage-based fee arrangement, including the agreed percentage and what it applies to

6. Non-Contingency Fee Structure: Details of the hourly or fixed fee portions of the agreement

7. Disbursements and Expenses: Treatment of costs and expenses, including which party is responsible for what

8. Calculation and Payment of Fees: Detailed explanation of how and when fees will be calculated and paid

9. Client's Rights and Obligations: Overview of client's responsibilities and rights under the agreement

10. Lawyer's Rights and Obligations: Overview of lawyer's responsibilities and rights under the agreement

11. Termination: Conditions and process for ending the agreement

12. Governing Law: Applicable law and jurisdiction

13. Execution: Signature blocks and date

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

1. Multiple Client Provisions: Required when representing multiple clients in the same matter

2. Conflict of Interest Provisions: Required when there are potential conflicts to address

3. Third Party Funding: Required when litigation funding is involved

4. Alternative Dispute Resolution: Optional section for specifying mediation or arbitration procedures

5. Insurance Coverage: Required when dealing with insured claims

6. Assignment: Optional section regarding transfer of rights under the agreement

7. Severability: Optional boilerplate section on partial invalidity

8. Entire Agreement: Optional integration clause

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

1. Schedule A - Fee Calculation Examples: Detailed examples showing how fees will be calculated in various scenarios

2. Schedule B - Hourly Rate Schedule: List of hourly rates for non-contingency work

3. Schedule C - Disbursement Schedule: Detailed list of anticipated disbursements and their handling

4. Appendix 1 - Client Authorization Form: Required forms for client signature and acknowledgment

5. Appendix 2 - Law Society Disclosure Form: Mandatory disclosures required by the relevant law society

6. Appendix 3 - Risk Disclosure Statement: Detailed explanation of risks and alternatives to contingency fee arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use

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