Legal analysis: If it is a risk agency and no money is recovered after losing the lawsuit, there will be no fee.
If it is a general representation, attorney fees have been charged before the case is filed, and they will not be refunded regardless of whether the case is won or lost.
Risk agency is a special kind of entrusted litigation agency between the agent and the parties. The client does not pay the agency fee in advance. After the execution of the case, the client pays the agent a certain proportion of the executed creditor's rights as remuneration. If the case fails or cannot be enforced, the agent will not receive any return; if the creditor's rights are enforced in place, the agent will pay the principal according to the agreed high ratio, which poses certain risks to both parties, so it is called a risk agency.
Classification:
Risk agency is divided into partial risk agency and full risk agency
Partial risk agency: After paying a certain amount of basic legal fees in advance, according to the agency As a result, legal fees are paid on a pro-rata basis, which is lower than the full contingency agency mentioned above.
Full-risk agency: Based on the specific circumstances of the case, negotiate with the lawyer to determine the fee. Generally, the fee will be charged in proportion to the outcome of the case, generally not exceeding 30% of the contract amount.
Legal basis: "Measures of the People's Republic of China and the State on the Administration of Fees for Lawyer Services"
Article 11 For civil cases involving property relations, the client shall be informed of the government's guiding price If it is still required to implement contingency agency after the application, the law firm may implement contingency agency fees, except in one of the following circumstances:
(1) Marriage and inheritance cases;
(2) ) Requesting for social insurance or minimum living security;
(3) Requesting for the payment of alimony, child support, support, pensions, relief funds, and work-related injury compensation;
( 4) Requesting payment of labor remuneration, etc.
Article 12 prohibits the implementation of contingency fees in criminal litigation cases, administrative litigation cases, state compensation cases, and group litigation cases.
Article 13 If contingency agency fees are implemented, the law firm shall sign a contingency agency fee contract with the client to agree on the risk responsibilities, charging standards, fee amounts or proportions that both parties shall bear.
When contingency agency fees are implemented, the law firm shall sign a contingency agency fee contract with the client. If a fee is charged, the maximum fee shall not be higher than 30% of the subject amount of the fee contract.