Sources and authorities
One rule, quoted from the body that publishes it and cross-checked against several state adoptions.
What a contingent fee agreement must contain
- American Bar Association, Model Rules of Professional Conduct, Rule 1.5(c), quoted from the Association's own publication of the Model Rules. Source of the requirement that a contingent fee agreement be in a writing signed by the client stating the method by which the fee is to be determined, including the percentages accruing in the event of settlement, trial or appeal, the litigation and other expenses to be deducted from the recovery, and whether those expenses are deducted before or after the fee is calculated; of the requirement that the agreement clearly notify the client of any expenses for which the client will be liable whether or not the client prevails; and of the requirement that upon conclusion the lawyer provide a written statement of the outcome showing the remittance and the method of its determination. Cross-checked against the versions published by five state bodies. American Bar Association.
A model is not a law, and this matters here. The Model Rules bind nobody by themselves. Each state adopts, amends or declines them, and the variations are not cosmetic. Louisiana's version adds a requirement that a copy or duplicate original of the executed agreement be given to the client at signing, which is a meaningful protection that the model text does not contain. So the quoted rule is a guide to what to look for in your own agreement, not something to cite at a firm as though it governed them.
Why the second paragraph leads section eight. Of everything quoted here, the closing written statement is the least known and among the most useful. It appears nowhere else on this site, and it is a document rather than a conversation: the outcome, and where there is a recovery, the remittance and the method of its determination. A reader who knows to expect it is in a different position from one who is handed a net figure and thanked.
Why this page is a script and not an explanation. Our fees and contingency guide already explains what these clauses mean across twelve sections, and it tells readers that the order-of-operations clause is required to be stated in the agreement and that this guide covers how to raise it. The wording is therefore the deliverable here. Each question is paired with what a straight answer sounds like and what an evasive one sounds like, because in practice the difficulty is rarely understanding the term and almost always finding a way to ask about it.