Partial Contingency Fee Agreement Template for England and Wales

A Partial Contingency Fee Agreement provides you with a flexible approach to legal funding that balances cost certainty with performance incentives. Unlike traditional hourly billing or pure contingency arrangements, this hybrid structure allows you to secure legal representation while managing your financial exposure through a combination of fixed fees and success-based payments.

When do you need this document?

You need this agreement when pursuing complex litigation where traditional fee structures may be prohibitive or where you want to align your lawyer's interests with your case outcomes. This is particularly valuable in commercial disputes, personal injury claims, or regulatory matters where success can be clearly defined and measured. The partial contingency model is also essential when you have limited upfront capital but a strong case with good prospects of success. Insurance providers and third-party funders often require these agreements to clearly define their exposure and the conditions under which additional fees become payable.

Key legal considerations

Your agreement must clearly define what constitutes 'success' and establish transparent calculation methods for both fixed and contingency components. The fee structure should specify percentage rates, payment triggers, and how costs will be allocated if the case is unsuccessful or settles early. Risk allocation clauses are crucial, particularly regarding adverse costs orders and the extent of your liability for the other party's legal expenses. You should also address termination provisions, including what happens to fees already paid and any outstanding obligations if either party ends the arrangement prematurely. Consider including provisions for interim payments and how expenses will be handled throughout the litigation process.

Legal requirements in England and Wales

Your agreement must comply with the Courts and Legal Services Act 1990, particularly Section 58, which provides the statutory framework for conditional fee agreements. The Civil Procedure Rules impose specific disclosure requirements and procedural obligations that must be reflected in your fee arrangement. Under the Solicitors Act 1974, your lawyer must provide clear information about costs and ensure the agreement meets professional conduct standards. The Legal Services Act 2007 establishes additional regulatory requirements for legal service providers that may affect your fee arrangement. Importantly, the Damages-Based Agreements Regulations 2013 cap contingency fees and impose mandatory terms that must be incorporated into your agreement to ensure enforceability in court proceedings.