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

Summary

This template is an engagement letter that formalizing an attorney-client relationship for a civil litigation matter in Virginia on a contingent fee basis. This template includes practical guidance, drafting notes, and alternate and optional clauses. An engagement letter must contain certain essential information, such as the client's identity, the intended scope of the contemplated legal work, and the fee arrangement (including billing frequency). This template provides for a contingent fee arrangement, which is most commonly used by plaintiff's attorneys in personal injury litigation and occasionally in other types of litigation. For a template hourly fee agreement, see Attorney Engagement Letter and Fee Agreement (Hourly Fee Arrangement) (VA). For a template flat fee agreement, see Attorney Engagement Letter and Fee Agreement (Flat Fee Arrangement) (VA). The Rules of Supreme Court of Virginia, 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 See Va. Sup. Ct. R. pt. 6, sec. II, 1.5(c). The agreement must also clearly notify the client of any expenses for which the client will be liable, whether or not the client is the prevailing party. 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 For a template non-engagement letter, see Attorney Non-engagement Letter (VA).