Sample Agreement

LET’S GET YOUR CASE STARTED!

Here’s a summary of how we do business.

• We’ll NEVER send you a bill
• We only get paid WHEN WE WIN or SETTLE your case
• The ways we get paid:
  • Debt harassment cases: debt collection agency or bank pays our fees because they broke the law
  • Robocall cases: we deduct 40% of the amount recovered
  • Lemon Law: we deduct 1/3 of cash settlements or receive fees from manufacturer

Scroll down to read the entire agreement.

1. Scope

By this request, <<FULL NAME>> (“Client”), residing in <<CITY, STATE, ZIP>>, asks Lemberg Law PLLC, based in Wilton, Connecticut (“Attorneys”) to represent client in Client’s potential case. If Attorneys decide the claim has merit, Attorneys will notify the Client in writing of their agreement to pursue the matter under the terms of this written Agreement. If Client retains the firm on other similar cases, they will be handled on the same terms as this agreement.

2. Rejection of Hourly Option

Client is informed that contingency representation is not the only way to hire a lawyer, and that Client has the right to hire a lawyer for the Client’s case on an hourly fee basis but elects not to do so. Contingency fees are not set by law and may be negotiated between Attorneys and Client.

3. No Fees Unless We Win — Contingency Representation

We charge you NO FEES UPFRONT and will only be paid from money that comes from the defendant, and only if we are successful in prosecuting your case on your behalf. If nothing is recovered, you will not be charged legal fees. How fees are calculated depends on your case:

Debt Harassment Cases

Settlement proceeds will be disbursed as follows: Client will receive (i) FDCPA recovery up to $1,000.00 and/or reduction of the debt, and (ii) documented state law damages, if any. Attorneys will receive attorney’s fees paid by collectors and costs and expenses of representation advanced on client’s behalf. The defense of debt collection lawsuits is not part of this request.

TCPA/Robocall Cases

These cases are inherently risky, frequently requiring extended travel, expense and expert travel and expert testimony. Because of the risk involved, legal fees to be received from settlements in these cases will be calculated as follows: 40% of the gross amount recovered on Client’s behalf from any settlement (which may include reduction of the debt), net of costs and expenses advanced, plus any legal fees and costs allowable by other laws. Attorneys make no promises about the exact amount of attorney’s fees to be incurred by Client under this Agreement. Client is not liable to pay Attorney attorney’s fees for legal work performed on TCPA cases otherwise than from amounts recovered on Client’s behalf by Attorney.

Car (Breach of Warranty and Lemon Law) Cases

Except as specified in Paragraphs 5 and 10, if nothing is recovered, you will not be charged legal fees. The amount of fees depends on the type of settlement you’re ultimately offered and chose to accept. Your case could settle in one of the following ways:

• Option A – CASH SETTLEMENTS. (No fee unless we win). Sometimes manufacturers agree to pay CASH to settle our clients’ claims. In negotiations, you hereby instruct us to negotiate our legal fees separately so that you don’t have to pay any fees or costs out of the settlement. However, if we’re unable to do so, our fees will be 33.33% of any lump sum settlement. If a case has been filed in court our fees, unless negotiated separately, will be the greater of (A) the amounts indicated above, or (B) value of time spent representing you billed at our normal rates. We’ll keep track of the time spent on your case. This contingency fee arrangement is in preference to paying attorney’s fees on an hourly basis.
• Option B – REPURCHASE – LEMON LAW CASES ONLY. (No fee unless we win). If your vehicle is ‘repurchased’ by the manufacturer, we are sometimes able to force the manufacturer not only to pay off the existing loan on the vehicle, but also to refund some of the money you have already paid for the car (less a statutory deduction for mileage), including monthly payments, taxes and other incidental expenses, in addition to attorney’s fees. In this event, our contingency compensation will be calculated as follows: LEGAL FEES PAID BY MANUFACTURER + no more than 25% of any funds recovered above vehicle pay off. If there is no recovery, YOU WILL OWE US NOTHING for services rendered.
• Option C — REPLACEMENT – LEMON LAW CASES ONLY. (No fee. Period). You pay no fees out-of-pocket, and here’s why. The Lemon Law in your state provide that, upon successful resolution of LEMON LAW disputes, defendants (the vehicle manufacturer or dealer) may be ordered to pay the reasonable attorneys’ fees of consumers like you. Therefore, if we obtain a replacement vehicle for you, our fees will be paid by the manufacturer. If there is no recovery, YOU WILL OWE US NOTHING for services rendered. * Option B and Option C may not be available in all states. However, Lemberg Law will attempt to achieve repurchase or replacement in the course of pre-arbitration and pre-suit negotiations. Lemberg Law will represent Client in these States on contingency pursuant to Option A.

Fair Credit Reporting And Faulty Background Check Cases

Settlement proceeds will be disbursed as follows: Client will receive (i) FCRA recovery up to $1,000.00, and (ii) documented state law damages, if any. Attorneys will receive attorney’s fees paid by credit reporting agencies and costs and expenses of representation advanced on client’s behalf. Cases alleging inaccuracies on background check reports are inherently risky, frequently requiring extended travel, expense and expert travel and expert testimony. Because of the risk involved, unless legal fees are negotiated separately, legal fees to be received from settlements in these cases will be calculated as follows:

40% (forty percent) of the gross proceeds of recovery, whether by settlement, judgment or otherwise. The Client will not have to pay attorneys’ fees if the Client does not prevail, recover money or settle the case. The Client also has been advised that the Client cannot waive, or in any way default the Attorneys’ claim for attorneys’ fees and costs, and that the Client has assigned and transferred to the Attorneys, the right to recover attorneys’ fees and costs that the Client may have.

In the event the Attorneys recover attorneys’ fees, or are awarded attorneys’ fees, the attorney’s fees recovered shall be applied against the amounts the Attorneys would be entitled to under this Agreement. In the event a judgment or court order is entered that provides for attorneys’ fees to be paid to the Client or the Client’s attorneys, or a Stipulation is agreed to between the parties to the litigation which provides for attorneys’ fees to be paid to the Client or the Client’s counsel, the Attorneys’ fees shall be the greater of (i) and (ii) below:

1. a reasonable attorney’s fee as awarded by the court under the state or federal statute or case law or agreed to by a settlement agreement; or
2. forty percent (40%) of the total amount recovered on behalf of the Client (including any court awarded attorney’s fees).

Should a settlement offer be made, the Attorneys will attempt to have the Defendant(s) add attorneys’ fees to the offer to see if the entire case can be settled at one time. If a separate fee is not contained in the offer and Defendant(s) offers a lump sum for claims which the Client decides to accept, then the attorneys’ fees will be the greater of the amount calculated pursuant to the preceding paragraph or $550 per hour.

Wage and Hour as well as Wrongful Repossession

In addition, Client acknowledges and agrees that Attorneys may deduct from any recovery obtained for Client an amount equal to the greater of: (a) 40 percent of the gross proceeds of recovery after costs and expenses are deducted, whether by settlement, judgment, or otherwise; or (b) Attorneys’ and co-counsel’s, if any, lodestar amount (hourly rate times hours expended). The hourly rates of Attorneys’ associates and partners vary from $300 to $750. These rates may be adjusted upward annually and are available upon request.

If Client’s claim is resolved on an individual basis prior to a ruling on class certification or the resolution of any appeals taken from a ruling on class certification, Client shall be obligated to pay Attorneys their hourly rates for the time they expended in the case and shall be obligated to reimburse the Attorneys for all costs and expenses incurred.

Client agrees that Attorneys may conduct settlement negotiations that include Client’s claims and an amount for attorneys’ fees, expenses, and costs in a manner that represents the best interests of a class or collective of clients as a whole. Client authorizes Attorneys to reject and/or accept settlement offers without obtaining additional approval. Client understands that Client will be legally bound by the terms of any settlement accepted on behalf of Client. Client may revoke this settlement authority at any time by providing Attorneys with written notice of such revocation

4. Cases in Litigation

For any case that is filed in Court, Attorneys will keep their hours at their normal hourly rates of $300 to $750, depending on the case and jurisdiction. These rates may be adjusted upward annually and are available upon request. Attorneys shall have the choice to receive, after deduction and reimbursement of costs and expenses, the greater of (i) the contingency fee amount or (ii) attorneys’ fee separately negotiated or awarded by Court or Arbitrator.

5. Costs and Expenses of Representing You

Attorneys will advance court costs and litigation expenses. If a lump sum settlement is reached, Attorneys will deduct from Client’s portion of the settlement amount litigation expenses, including investigation expenses, court costs, printing expenses, transcript and record fees, travel costs and any other costs attendant to representing you in the case. In addition, if your recovery exceeds one thousand dollars, Attorneys will have a right of reimbursement of certain other costs and expenses of representing you in the case. Such costs will include but will not be limited to (1) Westlaw legal research, (2) printing and reproduction costs, (3) mailing/postage, (4) Pacer, (5) facsimiles, (6) cost of travel which may be advanced and recovered on a case-by-case basis at Attorneys’ discretion. All costs carry interest rate of 10% Client is not liable for any expenses even if the client is not the prevailing party.

6. Jurisdiction/Venue

Clients understands that his/her case may be prosecuted by Attorneys either in the jurisdiction where the client lives or where the defendant is located. The case may be resolved pre-litigation, through arbitration, or brought in an appropriate State or Federal Court. The Client consents to such representation.

7. Attorney’s Lien

It is extremely rare, but sometimes lawyers and clients decide to part ways while the case is ongoing. In that case, with notice to you, we may stop representing you, for instance if we no longer believe the case is viable or if we question the truthfulness of what you tell us. If this happens, the law permits us to retain a lien for the value of our work and the costs we advanced for you. If you discharge us for any reason allowed by law, then we may assert a lien for expenses advanced and the fair value of legal work performed. If the Client agrees to a settlement on the telephone and then fails to execute settlement agreement paperwork required to complete the agreement, the Client agrees that Attorneys may proceed with settling the matter on behalf of the Client and recover from the total amount of the settlement any amount apportioned to legal fees and costs of representing the Client.

For Car Cases Only – What Happens if you Sell Your Car? You must maintain possession of your vehicle during our representation and while the legal action is pending. If you sell, trade, dispose of, allow your vehicle to be repossessed, or lose possession of your vehicle while the action is pending or during our representation, you will lose your right to recovery under warranty law and Lemon Law. Should you sell, trade, dispose of, or allow your vehicle to be repossessed, and/or lose possession of your vehicle, we reserve the right, by your implied action, to discontinue and or withdraw your case with your permission, or with court approval. In short, no car means no recovery. You must immediately inform this office should you lose possession and/or ownership of your vehicle. Client understands that if Client loses possession and/or ownership of Client’s vehicle during Attorneys’ representation, Client will be responsible for compensating Attorneys for all reasonable expenses, disbursements and the fair value of legal work performed.

8. File retention

On request, Attorneys will return to Client any documents or property provided by Client via U.S. Mail. Attorneys may store the Client’s entire file electronically and may send Client of the file in electronic form. Attorneys will not supply or store client-related communications that are not part of the file.

9. Check endorsement

Attorneys may endorse any settlement check made payable to both Client and Attorneys on Client’s behalf (if allowed by applicable State law), and deposit it in our Attorneys’ escrow account from which settlement funds will be disbursed.

10. Arbitration

Any disagreements that arise between Attorneys and Client with respect to fees and costs and expenses due shall be settled by binding arbitration in the state Client resides, if permitted in Client’s state law.

11. Premature discharge

In the event Lemberg Law is, for any reason, discharged as attorneys for the client prior to successful prosecution or settlement of the client’s claims, Lemberg Law will be compensated as follows:

1. If an offer of settlement has previously been made to plaintiff, Lemberg Law shall be entitled to compensation on the basis of the retainer and contingent percentages stated in this agreement based on the settlement amount offered.
2. In the event that no settlement offer has been made prior to discharge of Lemberg Law, compensation will be paid by the Client, at the option of Lemberg Law, either:
   1. on a pro rata basis of the above percentages on any amount ultimately recovered by client or class based upon the reasonable estimated of Lemberg Law’s proportionate contribution to any ultimate judgment or settlement sum awarded or received, inclusive of all time and effort spent by you on the matter (measured by the total time expended by Lemberg Law in the case relative to that of any successor counsel)
   2. On the basis of time actually expended in the performance of legal services for the client or class, set at hourly fee prevailing at the time such services are rendered.

12. Disclosure regarding compensation of counsel and associate attorney

Work on Client’s case will be done either by Lemberg Law Counsel admitted to in the Federal Court where the Client resides, where the case is filed or under the direct supervision and control of such Counsel. Counsel is compensated for their work either on an hourly basis, flat fee basis or on the basis of their efforts and contribution to the matter. If a Client desires the Client may request an in-person consultation with Counsel handling his/her case at Counsel’s office or at a geographical location convenient to Counsel, as the case may be.

13. State-Specific Provisions

Ohio:

1. RECOVERY. The Ohio Consumers Sales Practices Act (“OCSPA”) allows an additional $200.00 statutory collection for Client. Unless Client has documented and cognizable actual damages (such as loss of work, medical expenses, or other out-of-pocket costs) $1,200.00 is the MAXIMUM possible recovery for a Client located in Ohio regardless of the total amount of the settlement.
2. NO ACTUAL DAMAGES. If this matter settles and Client has no actual damages then Attorneys will first take out all of their costs and expenses from the settlement amount. Then, the first $2,500.00 of settlement proceeds, Attorneys will be entitled to 70.0% and Client will be entitled to 30.0%, pro rata of said amount. Finally, for any remaining settlement proceeds Attorneys and Client will take a 50/50 split, but with the Client’s total portion be limited to the statutory maximum of $1,200.00.
3. ACTUAL DAMAGES. If Attorneys determine that Client has documented and cognizable actual damages and Attorneys settle the case for Client, then the above formula will be used up to any settlement of $6,500.00. Any settlement amount over $6,500.00 will be split 40% to Attorneys and 60% to Client.
4. VERDICT AT TRIAL. In the event that Attorneys obtain a verdict in Client’s favor, Attorney’s will petition the Court to award them attorney’s fees and costs. Attorneys will be limited to what the Court awards us regardless of the language of this Agreement. If the Court does not award attorney fees, then Attorneys will be entitled to the fees as calculated in this Agreement.

South Carolina:

Due to procedural and notice requirements under applicable South Carolina state statutes, Attorneys cannot assert claims under state law on your behalf without first providing notice of those claims to a state agency, which then has the opportunity to investigate before we may commence litigation. Because your claims, if meritorious, can be acted upon immediately under federal law, it is our practice to pursue only fair debt collection claims under federal statutes. By signing this agreement, you acknowledge that we will represent you only to assert claims under federal fair debt collection statutes and that we will not pursue what may be viable claims under South Carolina fair debt collection provisions.

California:

Any dispute or claim between Client and Attorney, arising out of or relating to this agreement (including any claim for breach of this agreement, any dispute concerning fees, costs or both, any claim based upon alleged professional malpractice or misconduct and any other disagreement of any kind or description regardless of the facts or the legal theories involved) shall be resolved by binding arbitration in Sacramento, California, or the next nearest American Arbitration Association facility, and be administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The giving of written notice to Client of the right to arbitration of fee disputes pursuant to California Business and Professions Code sections 6200 through 6206 and the San Francisco County Bar Association fee arbitration program shall not constitute a waiver of the right to arbitrate under this section. Client acknowledges that by agreeing to arbitration, Client is giving up the right to a jury or court trial.

14. Tax Disclosure And Acknowledgment

The Client is advised to obtain independent and competent tax advice regarding legal and business matters since legal and business transactions can give rise to tax consequences. Attorneys will not render any tax advice. Except in car case, as a result of the settlement that may be arrived at for your behalf, there may be a Form 1099-MISC issued to you by the defendant, per the provisions of Internal Revenue Code Section 6041, for the gross amount of the settlement obtained. If you receive such form, the gross amount needs to be reported in your annual Federal and, if applicable, State income tax returns in the year the settlement was received. We recommend that you consult with your professional tax advisor.

15. Settlement Fund

Client agrees that legal fees earned in the client’s case may be paid either at once or structured to be received in the future over a period of years. Client agrees that disbursements of settlement proceeds may be done through a Qualified Settlement Fund.

16. Class Actions

Client consents that the case may be brought, in the first instance and only if appropriate, as a class action with the Client acting as lead plaintiff.

17. Entire Agreement

This Agreement is the entire agreement between Attorneys and Client, and it supersedes all prior agreements whether written or oral.