This charging method belongs to risk agency, which refers to a special entrusted litigation agent 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.
Extended data:
Compared with the traditional agency system, risk agency mainly has the following differences:
First, the objects of risk agency are mostly difficult and complicated, 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.
References:
Baidu encyclopedia-risk agent