Written Agreements
by Emerald Du on September 13, 2008
A written agreement (also known as retainer agreement, fee agreement, or representation agreement) is a contract which sets out the terms of the lawyer-client relationship.
The format of the agreement isn’t important; what matters is the content. The agreement must explicitly state the rules for certain issues such as: how the lawyer’s fees will be paid, who will pay for lawsuit costs, and who will work on the case.
Why You Need a Written Agreement
Most disputes between lawyers and clients are over money — mainly, over how much money the client owes the lawyer. To avoid these problems, some states require written fee agreements. Even if yours doesn’t, you should have a written record of what you agreed to pay the lawyer in case a dispute later arises over legal bills.
There are also non-monetary reasons to put your agreement in writing. First of all, there may be other important issues that you want recorded, such as who will argue your case if it goes to trial or the circumstances in which either you or the lawyer can end the relationship. Secondly, the agreement can clarify the relationship you expect to have with your lawyer. For example, some agreements state that the lawyer will communicate regularly with the client about lawsuit developments or that the client will respond promptly to requests from the lawyer. And finally, putting things in writing will force you and your lawyer to be very clear about your agreement. It’s all too common for each party to have a slightly different understanding of what was said.
Getting your agreement down on paper will insure that you and your lawyer are both on the same page.
What Your Written Agreement Should Include*
Fee agreements: The agreement should explain the lawyer’s fee, how it will be paid, and what fee structure will be used – whether on a contingency basis, or on an hourly basis.
Contingency basis: If you’re paying a contingency fee, the agreement should indicate what percentage of any award the lawyer will take, whether that percentage will change over the course of the lawsuit (some lawyers collect a higher percentage if the case goes to trial than if the case settles beforehand) and how the lawyer will collect the money.
Hourly basis: If you’re paying a lawyer by the hour, the agreement should set out the hourly rates of the lawyer and anyone else in the lawyer’s office who might work on the case. It should state how often you will be billed, how much detail the bill will include, and how long you have to pay the bill. If the lawyer will require you to pay a deposit in advance (often called a “retainer”), the agreement should include the amount of the retainer.
Litigation costs: The agreement should also explain how litigation costs will be handled. These costs include, but are not limited to: court fees, fees charged by expert witnesses, private investigators, process servers or stenographers, copying costs, travel expenses or messenger fees. Not surprisingly, litigation costs can really mount up — especially if a case goes all the way to trial. Your agreement should spell out which of these costs you’ll have to pay, which (if any) your lawyer will pick up, and when you’ll be expected to pay them. Some lawyers in contingency fee cases will front the money for costs; if the client wins, the lawyer is reimbursed from the award, but a client who loses has to figure out some way to pay back the lawyer.
Extent of the representation: The agreement should make clear that the lawyer will represent the client in all legal proceedings, up to and including trial. Some lawyers don’t handle appeals or other post-trial proceedings (such as judgment collection) — if this is true of your lawyer, the agreement should say so.
Who will do the work: The agreement should specify who will be the “lead counsel” on the case and what legal procedures that lawyer will handle personally.
Ending the relationship: Some agreements state how each party can end the relationship. For example, an agreement might state that the lawyer can quit at any time, or that the lawyer may only quit under specified circumstances.
Working together: Some agreements explain how the parties expect to work together. For example, an agreement might spell out which decisions the lawyer can make alone and which require the client’s approval, or might require the client to be honest with the lawyer.
*copied from FindLaw
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