What is required for a contingency fee arrangement?

A contingency fee arrangement is a type of payment structure in which an attorney's fee is contingent upon the successful resolution of a client's case, typically resulting in a monetary award. The essential requirement for such arrangements is that the agreement must include a clear calculation basis for how the fee will be determined. This ensures that clients understand how much they will owe and under what circumstances the attorney will be compensated.

The calculation basis typically includes details about the percentage of the recovery the attorney will take as their fee or how costs might influence the compensation. This clarity is crucial for ethical practices and helps prevent misunderstandings between the attorney and client.

In contrast, a verbal agreement, although possible in some contexts, does not satisfy the requirement for specificity and transparency. Specifying an hourly rate does not apply in a contingency fee context, as the fee is based on the outcome rather than billed hours. Additionally, notarization is not necessary or typical for contingency fee arrangements; instead, written contracts suffice, often becoming enforceable when signed by both parties.