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| Page: Florida Rules on Lawyer Contingent Fees |
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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
(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
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
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
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.
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).
(i) To the lawyer
assuming primary responsibility for the legal services on behalf of the client, a minimum of 75% of
the total fee.
(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.
(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 (A) each lawyer assumes joint legal responsibility
for the representation and agrees to be available for consultation with the client;
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