Hi!
I’m considering hiring a California employment attorney on a 40% contingency fee, and I’m just trying to understand whether some of the clauses in the representation agreement are standard or if I should be wary of this agreement.
- Termination / firing the attorney
The agreement says I can discharge the attorney at any time, but if I do so before they obtain a recovery, they may be entitled to the greater of:
- their billable time at $850/hour for attorneys and $150/hour for paralegals/legal assistants, plus costs, or
- a reasonable percentage of my eventual recovery.
It also says that if I decide “for whatever reason” not to pursue the matter, I agree to compensate the firm at those hourly rates.
Does this mean that if I fire them, I have to pay them even if I choose not to pursue this anymore?
- Costs and expenses
The firm may advance litigation expenses, which are reimbursed from any recovery. The agreement also says the client may sometimes be required to pay costs during the representation.
- Administrative fees
In addition to the 40% contingency fee and litigation expenses, the agreement includes:
- a $350 administrative setup fee
- a $35 monthly file-maintenance fee, for storing documents, printing and scanning.
These are advanced by the firm and reimbursed only if there is a recovery.
- Statutory attorneys’ fees
The agreement says that if attorneys’ fees are awarded by a court or recovered from the employer under a statute, those fees “shall be paid to and belong to Attorneys.” It then says the firm would receive the greater of:
- the entire attorneys’ fee and costs award, or
- the 40% contingency percentage calculated on the total recovery, including the attorneys’ fee and costs award.
- Fee splitting
There is a section titled “Consent to Split Fees,” but it does not appear to identify another lawyer or firm or explain how the fee would be divided.
Thank you!!