Fee Agreement – Hybrid Billing (Reduced Hourly + Contingency/Success Fee)

1. Parties and Matter

• Law Firm: [Firm Name], [Address].
• Client: [Client Name/Entity], [Address].
• Matter Description: [Brief description].

2. Hybrid Fee Structure

• Reduced Hourly Component:
• Partners: $[Rate]/hour
• Associates: $[Rate]/hour
• Paralegals: $[Rate]/hour
• Minimum billing increment: [0.1] hour.
• Contingent/Success Component:
• Upon recovery or defined success event, firm receives [Percentage]% of gross recovery OR success fee of $[Amount] payable upon achievement of [Milestone].
• Contingent portion calculated after reimbursement of advanced costs unless otherwise required by law.

3. Retainer and Billing

• Client pays initial retainer of $[Amount], held in trust, applied to hourly fees and costs.
• Client agrees to replenish trust when balance falls below $[Threshold].
• Monthly invoices issued detailing hourly charges, costs, and accrued success fee (if applicable).

4. Costs and Expenses

• Client responsible for litigation expenses, expert witnesses, filing fees, travel, technology, mediation, and other third-party costs.
• Firm may advance costs; reimbursement due upon invoice or from recovery.
• Expenses over $[Amount] require prior approval unless urgent.

5. Success Event Definition

• "Success Event" means [e.g., settlement exceeding $X, dismissal of claims, achievement of transaction closing].
• Parties may modify success criteria in writing before event occurs.

6. Client Responsibilities

• Provide timely information, decisions, and cooperation in discovery and negotiations.
• Maintain open communication and promptly review documents.

7. Settlement Authority

• Client retains final authority to settle; attorney must obtain written consent before acceptance.
• If client rejects recommendation leading to withdrawal, client responsible for fees/costs to date and any contractually owed success fee triggered before withdrawal.

8. Trust Account Disbursement Order

1. Reimbursement of advanced costs.
2. Payment of accrued hourly fees.
3. Payment of contingent/success fee.
4. Distribution of remainder to client.

9. Termination and Quantum Meruit

• Client may terminate at any time with written notice. Firm entitled to unpaid hourly fees, reimbursed costs, and reasonable value of contingent interest payable from future recovery.
• Firm may withdraw for nonpayment, conflict, or ethical obligations, subject to court approval where required.

10. Dispute Resolution

• Fee disputes submitted to [State/County Bar Fee Arbitration Program] prior to litigation.
• Governing law: [State]; venue: [County].

11. File Retention

• Files maintained for [Number] years after matter completion; originals returned on request.

12. Entire Agreement

• Represents complete understanding; modifications must be in writing signed by both parties.

13. Signatures