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Mixed Contingency Fee Agreement

Mixed Contingency Fee Agreement Template for Philippines

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Key Requirements PROMPT example:

Mixed Contingency Fee Agreement

"I need a Mixed Contingency Fee Agreement for a corporate litigation case in Manila, with a 15% fixed fee payable monthly starting January 2025 and a 25% contingency fee on net recovery, including provisions for multiple attorneys working on the case."

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Document background
The Mixed Contingency Fee Agreement is a specialized legal document used in the Philippines when clients and attorneys wish to establish a hybrid fee arrangement that combines both fixed and contingency elements. This arrangement is particularly suitable for cases where clients seek to balance upfront costs with success-based compensation, such as in commercial litigation, property disputes, or recovery cases. The document must strictly comply with Philippine legal requirements, including the Civil Code, Code of Professional Responsibility, and Supreme Court guidelines limiting contingency fees to 50% of net recovery. It provides comprehensive coverage of fee structures, service scope, payment terms, and professional obligations while protecting both parties' interests. This type of agreement has become increasingly popular in the Philippine legal market as it offers flexibility and alignment of interests between attorneys and clients.
Suggested Sections

1. Parties: Identification of the Attorney/Law Firm and the Client with complete details

2. Background: Context of the legal matter and reason for engagement

3. Definitions: Key terms used throughout the agreement including 'Recovery', 'Net Recovery', 'Costs', 'Fixed Fee Component', and 'Contingency Fee Component'

4. Scope of Legal Services: Detailed description of legal services to be provided and the specific matter being handled

5. Fee Structure: Detailed breakdown of the mixed fee arrangement, including fixed fee amounts and contingency percentage

6. Payment Terms: Terms for payment of fixed fees and calculation/payment of contingency fees

7. Costs and Expenses: Allocation of responsibility for litigation costs and other expenses

8. Client's Rights and Obligations: Client's responsibilities and rights throughout the representation

9. Attorney's Rights and Obligations: Attorney's commitments and professional obligations

10. Termination: Conditions and procedures for termination of the agreement

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional provisions

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Conflict Resolution: Procedures for resolving disputes between attorney and client - recommended for high-value cases

2. Referral Arrangements: Terms regarding fee sharing if other attorneys are involved - include if referral arrangements exist

3. Insurance Coverage: Provisions regarding professional liability insurance - include for high-risk cases

4. Confidentiality: Detailed confidentiality provisions - recommended for sensitive matters

5. Multiple Client Provisions: Special provisions for cases with multiple clients - include only if representing multiple parties

6. Success Metrics: Definition of success criteria for contingency calculation - recommended for complex cases

Suggested Schedules

1. Schedule A - Fee Calculation Examples: Examples showing how mixed fees will be calculated in different scenarios

2. Schedule B - Scope of Services: Detailed breakdown of services covered under the agreement

3. Schedule C - Cost Schedule: Itemized list of anticipated costs and expenses

4. Appendix 1 - Client Authorization: Client's written authorization for specific actions

5. Appendix 2 - Related Cases: List of related cases or matters if applicable

6. Appendix 3 - Team Members: List of attorneys and staff assigned to the matter

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Attorney
Client
Services
Matter
Fixed Fee
Contingency Fee
Gross Recovery
Net Recovery
Costs
Expenses
Disbursements
Success
Effective Date
Termination Date
Court
Claim
Settlement
Award
Judgment
Legal Proceedings
Alternative Dispute Resolution
Mediation
Arbitration
Professional Fees
Billing Period
Responsible Attorney
Related Matters
Conflict of Interest
Confidential Information
Work Product
Third Party
Business Day
Force Majeure
Philippine Peso
Governing Law
Jurisdiction
Professional Relationship
Engagement Letter
Material Change
Relevant Industries

Legal Services

Financial Services

Real Estate

Construction

Manufacturing

Technology

Healthcare

Mining

Insurance

Retail

Transportation

Energy

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Secretariat

Executive Leadership

Business Development

Operations

Procurement

Relevant Roles

Chief Legal Officer

General Counsel

Legal Director

Corporate Secretary

Compliance Officer

Risk Manager

Chief Financial Officer

Managing Partner

Senior Partner

Legal Operations Manager

Contract Manager

Business Development Manager

Chief Executive Officer

Finance Director

Corporate Counsel

Industries
Civil Code of the Philippines (Republic Act No. 386): Governs contracts in general and specifically addresses attorney-client relationships and fee arrangements under Articles 1764-1789 on Professional Services
Code of Professional Responsibility (Supreme Court of the Philippines): Contains ethical guidelines for lawyers, including Canon 20 which specifically addresses attorney's fees and contingency fee arrangements
Rules of Court (Rule 138, Section 24): Regulates attorney's fees and provides guidelines for compensation of attorneys, including contingency fee arrangements
Bar Matter No. 287: Supreme Court guidelines on attorney's fees, establishing that contingency fees should not exceed 50% of the net recovery
National Internal Revenue Code (Tax Code): Governs the taxation of attorney's fees, including treatment of contingency fees as income
The Lawyer's Oath: Fundamental ethical obligations that must be reflected in fee arrangements, including the duty to charge only reasonable fees
Supreme Court Decision in Rayos vs. Hernandez (G.R. No. L-19561): Landmark case establishing guidelines for determining reasonableness of attorney's fees in contingency arrangements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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