Attorney Engagement Letter and Fee Agreement
(Contingency Fee Arrangement) (MI)

This template is an engagement letter that can be used to enter into and formalize an attorney-client relationship for a civil litigation matter in Michigan on a contingent fee basis. This template includes practical guidance, drafting notes, and alternate and optional clauses. An engagement letter must contain certain essential information, such as the client's identity, the intended scope of the contemplated legal work, and the fee arrangement (including billing frequency). This template provides for a contingent fee arrangement, which is most commonly used by plaintiff's attorneys in personal injury litigation and occasionally other types of litigation. Contingent fee agreements are generally permitted in civil cases, except for certain types of domestic relations cases. See MRPC 1.5(c), (d). The Michigan Rules of Professional Conduct require that a contingent fee agreement be in writing and set forth the method by which the fee is to be determined. MRPC 1.5(c); see MCR 8.121(F). At the conclusion of a contingent-fee matter, the lawyer must provide the client with a written statement of the outcome of the matter and, if there is a recovery, show the remittance to the client and the method of its determination. MRPC 1.5(c). Additional requirements apply specifically to contingent fee arrangements in personal injury, wrongful death, and no-fault benefits cases, as discussed in the drafting notes this template. See MCR 8.121. If multiple parties will be jointly represented, a provision disclosing the potential for conflicts of interest and provisions regarding potential termination of interest in the event that a conflict arises as well as the possible impact on attorney-client privilege should be included. An optional paragraph regarding joint representation is included in this template. For a template hourly fee agreement, see Attorney Engagement Letter and Fee Agreement (Hourly Fee Arrangement) (MI).