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Unlike many law firms, the Harris Law Firm,
P.A. never accepts more money as a fee than you recover in your personal injury settlement or
judgment.
Be an Educated Consumer, and an Educated
Client. Here are the Florida Rules on Contingent Fees.
Keep in mind that if your case is located outside
of Florida, then your jurisdiction's rules will apply, and those rules can be different from the
rules below.
Florida Rules Governing Lawyer Contingent
Fees
RULE 4-1.5 FEES AND COSTS FOR LEGAL
SERVICES
As to contingent
fees:
(1) A fee may be contingent on the
outcome of the matter for which the service is rendered, except in a matter in which a
contingent fee is prohibited by subdivision (f)(3) or by law. A contingent fee agreement
shall be in writing and shall state the method by which the fee is to be determined,
including the percentage or percentages that shall accrue to the lawyer in the event of
settlement, trial, or appeal, litigation and other expenses to be deducted from the recovery,
and whether such expenses are to be deducted before or after the contingent fee is
calculated. Upon conclusion of a contingent fee matter, the lawyer shall provide the client
with a written statement stating the outcome of the matter and, if there is a recovery,
showing the remittance to the client and the method of its
determination.
(2) Every lawyer who accepts a
retainer or enters into an agreement, express or implied, for compensation for services
rendered or to be rendered in any action, claim, or proceeding whereby the lawyer’s
compensation is to be dependent or contingent in whole or in part upon the successful
prosecution or settlement thereof shall do so only where such fee arrangement is reduced to a
written contract, signed by the client, and by a lawyer for the lawyer or for the law firm
representing the client. No lawyer or firm may participate in the fee without the consent of
the client in writing. Each participating lawyer or law firm shall sign the contract with the
client and shall agree to assume joint legal responsibility to the client for the performance
of the services in question as if each were partners of the other lawyer or law firm
involved. The client shall be furnished with a copy of the signed contract and any subsequent
notices or consents. All provisions of this rule shall apply to such fee
contracts.
(3) A lawyer shall not enter into
an arrangement for, charge, or collect:
(A) any fee in a
domestic relations matter, the payment or amount of which is contingent upon the securing of a
divorce or upon the amount of alimony or support, or property settlement in lieu thereof;
or
(B) a contingent fee for representing a defendant in a criminal
case.
(4) A lawyer who enters into an
arrangement for, charges, or collects any fee in an action or claim for personal injury or
for property damages or for death or loss of services resulting from personal injuries based
upon tortious conduct of another, including products liability claims, whereby the
compensation is to be dependent or contingent in whole or in part upon the successful
prosecution or settlement thereof shall do so only under the following
requirements:
(A) The contract shall contain the
following provisions:
(i) "The undersigned client has,
before signing this contract, received and read the statement of client’s rights and
understands each of the rights set forth therein. The undersigned client has signed the
statement and received a signed copy to refer to while being represented by the undersigned
attorney(s)."
(ii) "This contract may be
cancelled by written notification to the attorney at any time within 3 business days of the
date the contract was signed, as shown below, and if cancelled the client shall not be
obligated to pay any fees to the attorney for the work performed during that time. If the
attorney has advanced funds to others in representation of the client, the attorney is
entitled to be reimbursed for such amounts as the attorney has reasonably advanced on behalf
of the client."
(B) The contract for representation
of a client in a matter set forth in subdivision (f)(4) may provide for a contingent fee
arrangement as agreed upon by the client and the lawyer, except as limited by the following
provisions:
(i) Without prior court approval as
specified below, any contingent fee that exceeds the following standards shall be presumed,
unless rebutted, to be clearly excessive:
a. Before the filing of an answer
or the demand for appointment of arbitrators or, if no answer is filed or no demand for
appointment of arbitrators is made, the expiration of the time period provided for such
action:
1. 33 1/3% of any
recovery up to $1 million; plus
2. 30% of any portion of the recovery between $1 million and $2
million; plus
3. 20% of any portion of the recovery exceeding $2
million.
b. After the filing of an answer or
the demand for appointment of arbitrators or, if no answer is filed or no demand for
appointment of arbitrators is made, the expiration of the time period provided for such
action, through the entry of judgment:
1. 40% of any
recovery up to $1 million; plus
2. 30% of any portion of the recovery between $1 million and $2
million; plus
3. 20% of any portion of the recovery exceeding $2
million.
c. If all defendants admit
liability at the time of filing their answers and request a trial only on
damages:
1. 33 1/3% of any
recovery up to $1 million; plus
2. 20% of any portion of the recovery between $1 million and $2
million; plus
3. 15% of any portion of the recovery exceeding $2
million.
d. An additional 5% of any recovery
after institution of any appellate proceeding is filed or post-judgment relief or action is
required for recovery on the judgment.
(ii) If any client is unable to
obtain an attorney of the client’s choice because of the limitations set forth in subdivision
(f)(4)(B)(i), the client may petition the court in which the matter would be filed, if
litigation is necessary, or if such court will not accept jurisdiction for the fee division,
the circuit court wherein the cause of action arose, for approval of any fee contract between
the client and an attorney of the client’s choosing. Such authorization shall be given if the
court determines the client has a complete understanding of the client’s rights and the terms
of the proposed contract. The application for authorization of such a contract can be filed
as a separate proceeding before suit or simultaneously with the filing of a complaint.
Proceedings thereon may occur before service on the defendant and this aspect of the file may
be sealed. A petition under this subdivision shall contain a certificate showing service on
the client and, if the petition is denied, a copy of the petition and order denying the
petition shall be served on The Florida Bar in Tallahassee by the member of the bar who filed
the petition. Authorization of such a contract shall not bar subsequent inquiry as to whether
the fee actually claimed or charged is clearly excessive under subdivisions (a) and
(b).
(iii) Subject to the provisions of
4-1.5(f)(4)(B)(i) and (ii) a lawyer who enters into an arrangement for, charges, or collects
any fee in an action or claim for medical liability whereby the compensation is dependent or
contingent in whole or in part upon the successful prosecution or settlement thereof shall
provide the language of article I, section 26 of the Florida Constitution to the client in
writing and shall orally inform the client that:
a. Unless waived, in
any medical liability claim involving a contingency fee, the claimant is entitled to receive no
less than 70% of the first $250,000.00 of all damages received by the claimant, exclusive of
reasonable and customary costs, whether received by judgment, settlement, or otherwise, and
regardless of the number of defendants. The claimant is entitled to 90% of all damages in excess of
$250,000.00, exclusive of reasonable and customary costs and regardless of the number of
defendants.
b. If a lawyer chooses not to accept the representation of a client
under the terms of article I, section 26, Florida Constitution, the lawyer shall advise the client,
both orally and in writing of alternative terms, if any, under which the lawyer would accept the
representation of the client, as well as the client’s right to seek representation by another
lawyer willing to accept the representation under the terms of article I, section 26, Florida
Constitution, or a lawyer willing to accept the representation on a fee basis that is not
contingent.
c. If any client desires to waive any rights under article I, section
26, Florida Constitution, in order to obtain a lawyer of the client’s choice, a client may do so by
waiving such rights in writing, under oath, and in the form provided in this rule. The lawyer shall
provide each client a copy of the written waiver and shall afford each client a full and complete
opportunity to understand the rights being waived as set forth in the waiver. A copy of the waiver,
signed by each client and lawyer, shall be given to each client to retain, and the lawyer shall
keep a copy in the lawyer’s file pertaining to the client. The waiver shall be retained by the
lawyer with the written fee contract and closing statement under the same conditions and
requirements provided in 4-1.5(f)(5).
Attorney
(C) Before a lawyer
enters into a contingent fee contract for representation of a client in a matter set forth in this
rule, the lawyer shall provide the client with a copy of the statement of client’s rights and shall
afford the client a full and complete opportunity to understand each of the rights as set forth
therein. A copy of the statement, signed by both the client and the lawyer, shall be given to the
client to retain and the lawyer shall keep a copy in the client’s file. The statement shall be
retained by the lawyer with the written fee contract and closing statement under the same
conditions and requirements as subdivision (f)(5).
(D) As to lawyers not in the same firm, a division of any fee within
subdivision (f)(4) shall be on the following basis:
(i) To the lawyer
assuming primary responsibility for the legal services on behalf of the client, a minimum of 75% of
the total fee.
(ii) To the lawyer assuming secondary responsibility for the legal
services on behalf of the client, a maximum of 25% of the total fee. Any fee in excess of 25% shall
be presumed to be clearly excessive.
(iii) The 25% limitation shall not apply to those cases in which 2 or
more lawyers or firms accept substantially equal active participation in the providing of legal
services. In such circumstances counsel shall apply to the court in which the matter would be
filed, if litigation is necessary, or if such court will not accept jurisdiction for the fee
division, the circuit court wherein the cause of action arose, for authorization of the fee
division in excess of 25%, based upon a sworn petition signed by all counsel that shall disclose in
detail those services to be performed. The application for authorization of such a contract may be
filed as a separate proceeding before suit or simultaneously with the filing of a complaint, or
within 10 days of execution of a contract for division of fees when new counsel is engaged.
Proceedings thereon may occur before service of process on any party and this aspect of the file
may be sealed. Authorization of such contract shall not bar subsequent inquiry as to whether the
fee actually claimed or charged is clearly excessive. An application under this subdivision shall
contain a certificate showing service on the client and, if the application is denied, a copy of
the petition and order denying the petition shall be served on The Florida Bar in Tallahassee by
the member of the bar who filed the petition. Counsel may proceed with representation of the client
pending court approval
(iv) The percentages required by this subdivision shall be applicable
after deduction of any fee payable to separate counsel retained especially for appellate
purposes.
(5) In the event
there is a recovery, upon the conclusion of the representation, the lawyer shall prepare a closing
statement reflecting an itemization of all costs and expenses, together with the amount of fee
received by each participating lawyer or law firm. A copy of the closing statement shall be
executed by all participating lawyers, as well as the client, and each shall receive a copy. Each
participating lawyer shall retain a copy of the written fee contract and closing statement for 6
years after execution of the closing statement. Any contingent fee contract and closing statement
shall be available for inspection at reasonable times by the client, by any other person upon
judicial order, or by the appropriate disciplinary agency.
(6) In cases in which the client is to receive a recovery that will
be paid to the client on a future structured or periodic basis, the contingent fee percentage shall
be calculated only on the cost of the structured verdict or settlement or, if the cost is unknown,
on the present money value of the structured verdict or settlement, whichever is less. If the
damages and the fee are to be paid out over the long term future schedule, this limitation does not
apply. No attorney may negotiate separately with the defendant for that attorney’s fee in a
structured verdict or settlement when separate negotiations would place the attorney in a position
of conflict.
(g) Division of Fees Between Lawyers in Different
Firms. Subject to the provisions of
subdivision (f)(4)(D), a division of fee between lawyers who are not in the same firm may be
made only if the total fee is reasonable and:
(1) the division is in proportion
to the services performed by each lawyer; or
(2) by written agreement with the client:
(A) each lawyer assumes joint legal responsibility
for the representation and agrees to be available for consultation with the client;
and
(B) the agreement fully discloses that a division of fees will be
made and the basis upon which the division of fees will be made.
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