What does risk agency mean? What are the advantages and disadvantages?Sometimes we entrust a professional lawyer when filing a lawsuit, but we are not sure that it will definitely win the case for us

What does risk agency mean? What are the advantages and disadvantages?Sometimes we entrust a professional lawyer when filing a lawsuit, but we are not sure that it will definitely win the case for us. At this time, there is a risk agent who can give us a choice. The most common meaning of contingency agency is to pay the attorney's fees after winning the lawsuit. So what does risk agency mean? 1. The meaning of risk agency Risk agency refers to a special kind of entrusted litigation agency between the agent and the parties. The client does not pay in advance. After the execution of the case, the client pays the agent a certain proportion of the executed claims as a remuneration. If the case is lost or execution cannot be carried out, the agent will not receive any return; if the creditor's rights are executed 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. 2. The difference between risk agents Risk agents are divided into partial risk agents and full risk agents. Partial risk agency: A certain amount of basic legal fees is paid first, and then the legal fees are paid in proportion to the results of the agency, which is lower than that of full risk agency. Full-risk agency: It needs to be determined in consultation with a lawyer based on the specific circumstances of the case. The fee is generally charged in proportion to the outcome of the case, and generally does not exceed 30% of the contract amount. 3. Comparison of risk agency Compared with the traditional agency system, risk agency has the following main differences: First, the objects of risk agency are difficult and complex cases, especially cases that are difficult to execute, otherwise the client will not agree to risk agency. Second, the results of lawyer representation are closely linked to lawyer compensation and investment recovery, that is, lawyers not only have to bear the risk of not receiving fees, but also bear the risk of investment losses. This forces the lawyers handling the case to have to strengthen their awareness 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 handling the case, and the lawyer has relatively greater authority to dispose of the substantive rights and interests of the case. The "Administrative Measures for Lawyer Service Fees" jointly issued by the National Development and Reform Commission and the Ministry of Justice officially recognized risk fees as a method of lawyer fees and confirmed the legality of risk fees. Charging Standards: Administrative Measures for Lawyer Service Fees. Article 11 When a law firm handles civil cases involving property relations, if the parties still request contingency agency after being informed of the government's guidance price, they may implement contingency agency fees, except in the following circumstances: (1) Marriage and inheritance cases; (2) Requesting for social insurance benefits or minimum living security benefits; (3) Requesting for the payment of alimony, childcare, support, pensions, and relief funds; (4) Requesting for the payment of labor remuneration. Article 12 It is prohibited to implement 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 stipulate the risk responsibilities, charging methods, fee amounts or proportions of both parties. If contingency agency fees are implemented, the maximum fee amount shall not be higher than 30% of the fee amount stipulated in the contract. Hope it helps everyone. If the lawsuit is eventually lost, or the lawsuit cannot be withdrawn midway, the attorney will not receive any remuneration; but if the lawsuit is won, the client will pay the attorney the client's remuneration according to the agreed high proportion. This representation method has certain consequences for both parties. risk.