Attorney Engagement Letter and Fee Agreement
(Contingency Fee Arrangement) (NY)

This template is an engagement letter that can be used to enter into and formalize an attorney-client relationship for a civil litigation matter in New York on a contingent fee basis. It includes practical guidance, drafting notes, and alternate and optional clauses. An engagement letter must contain certain essential information, such as the: • Client's identity • Intended scope of the contemplated legal work –and– • Fee arrangement (including billing frequency) This template provides for a contingent (or contingency) fee arrangement, which is most commonly used by plaintiff's attorneys in personal injury litigation and occasionally in other types of litigation. The New York Rules of Professional Conduct (Rules of Professional Conduct) require that a contingent fee arrangement be set forth in a written agreement that includes certain information and is signed by the client. A contingent fee agreement must state: • The method by which the fee is to be determined, including the percentage or percentages that will accrue to the lawyer in the event of settlement, trial, or appeal • Litigation and other expenses to be deducted from the recovery • Whether the expenses are to be deducted before or after the contingent fee is calculated –and– • Any expenses for which the client will be liable, whether or not the client is the prevailing party 22 NYCRR § 1200.0 (Rule 1.5(c)). If you will be jointly representing multiple parties, you should include provisions: • Disclosing the potential for conflicts of interest and provisions • Covering potential termination of interest should a conflict arise • Explaining the possible impact on attorney-client privilege of such an arrangement and its termination See 22 NYCRR § 1200.0 (Rule 1.7). For templates of other types of fee agreements, see: • Attorney Engagement Letter and Fee Agreement (Hourly Fee Arrangement) (NY) • Attorney Engagement Letter and Fee Agreement (Flat Fee Arrangement) (NY) • Attorney Engagement Letter and Fee Agreement (Alternative Fee Arrangement) (NY)