Cost Agreement Rules

c) A tax may depend on the outcome of the case for which the service is provided, unless a possible tax is prohibited by paragraph d or other laws. A conditional royalty agreement is written in a letter signed by the client and defines the method by which the fee must be determined, including the percentage or percentages owed to counsel in the event of a transaction, lawsuit or claim; Litigation and other expenses that are deducted from recovery; and whether these fees should be deducted before or after the calculation of the contingency tax. The contract must clearly inform the customer of all costs for which the customer is responsible, whether or not the customer is the dominant party. Following a question of possible fee, the lawyer presents the client with a written statement containing the outcome of the case and, if recovery, referral to the client and the method of his disposition. There are strict rules on how to deal with cost agreements. If you do not comply with these rules, the agreement may be cancelled, even if your client has accepted it. For the work related to the case, you can only charge fair and reasonable costs. Their costs must also be reasonable and proportionate to related work. (a) A lawyer cannot enter into, charge or withdraw an agreement on an undue fee or an undue amount for expenses. The elements to be considered in determining the adequacy of the tax are: (2) The client accepts the agreement, including the shares that each lawyer receives, and the agreement is confirmed in writing; and your client has the right to negotiate how you charge the fees; and you can make them a written offer as part of the cost agreement. The Legal Services Council has prepared a fact sheet on cost agreements available on its website.

These “conditional cost agreements” must be concluded in writing and must be clear. You must include all the conditions that you define as a successful result, and they must be accepted in writing or cannot be applied. If you think your client has a good chance of succeeding, you can also include a condition for paying a “buoyancy fee.”