Risk agency refers to a special entrusted litigation agency between the entrusted agent and the parties. If the client does not pay the agency fee in advance, after the case is executed, the client will pay a certain proportion of the creditor's rights executed in place to the agent as a reward. If the case is lost or the execution fails, the agent will not get any return; If the creditor's rights are executed in place, the client will pay the agent in accordance with the agreed high proportion, which has certain risks for both parties, so it is called risk agency.
Classification of lawyer's risk agency
Risk agency is divided into partial risk agency and comprehensive risk agency.
Partial risk agent: after paying a certain basic lawyer fee in advance, the lawyer fee will be paid in proportion according to the result, which is lower than the above-mentioned all-insurance agent.
All-insurance agent: it needs to be determined through consultation with lawyers according to the specific circumstances of the case. Generally, it will be charged in proportion according to the results of the case, generally not exceeding 30% of the contract amount.
Traditional institutions
Compared with the traditional agency system, risk agency mainly has the following differences: First, the objects of risk agency are mostly complicated cases, especially cases that are difficult to implement, otherwise the client will not agree to risk agency. Second, the agency result is closely related to the lawyer's remuneration and investment recovery, that is, the lawyer should not only bear the risk of not receiving the agency fee, but also bear the risk of investment loss. This urges lawyers to strengthen their sense of responsibility. Third, the agreed fee ratio is relatively high, which is more attractive to lawyers. Fourth, the client has a high degree of trust in the lawyer, and the lawyer has greater authority to dispose of the substantive rights and interests of the case.
On April 13, 2006, the National Development and Reform Commission and the Ministry of Justice jointly issued the Measures for the Administration of Lawyers' Service Fees, which formally confirmed that risk fees are a way for lawyers to charge fees and confirmed the legitimacy of risk fees.
Third, the risk of legal fees.
legal ground
Measures for the administration of lawyers' service fees
Article 11 When a law firm handles a civil case involving property relations, if the client still asks for risk agency after learning the government-guided price, the risk agency fee may be implemented, except for the following circumstances:
(1) Marriage and inheritance cases;
(2) Requesting social insurance benefits or minimum living security benefits;
(3) Requesting to pay alimony, alimony, alimony, pension, relief fund and compensation for work-related injuries;
(4) Request for payment of labor remuneration, etc.
Article 12 It is forbidden to implement risk agency fees in criminal litigation cases, administrative litigation cases, state compensation cases and group litigation cases.
Thirteenth risk agency fees, the law firm shall sign a risk agency fee contract with the client, and stipulate the risk responsibility, charging method, charging amount or proportion that both parties should bear.
The maximum risk agency fee shall not be higher than 30% of the target amount agreed in the charging contract.