Section 4Part 2 — CONTINGENCY FEE AGREEMENTS
Conditions applicable to contingency fee agreements
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Subject to subsection (2), where a contingency fee agreement provides that an attorney-at-law is entitled to a success fee, the success fee shall not exceed the normal fees of the attorney-at-law by more than one hundred per cent.
In the case of claims sounding in money, the total of any such success fee payable by a client to an attorney-at-law shall not exceed the prescribed percentage of the total amount awarded or any amount obtained by the client in consequence of the proceedings concerned, which amount shall not, for the purposes of calculating any excess, include any costs.
Where a contingency fee agreement involves a percentage of the amount or of the value of the property recovered in an action or proceedings, the amount to be paid to the attorney-at-law shall not be more than the maximum percentage, if any, prescribed by regulations, of the amount or of the value of the property recovered in the action or proceedings, however the amount or property is recovered.
Notwithstanding subsections (1), (2) or (3), an attorney-at-law may enter into a contingency fee agreement where —
the amount paid to the attorney-at-law is more than the prescribed maximum percentage of the amount or of the value of the property recovered in the action or proceedings; or
the success fee exceeds either of the percentages set out in subsections (1) or (2),
and where a joint application by the attorney-at-law and the client is brought within ninety days of the execution of the contingency fee agreement and the contingency fee agreement is approved by the Grand Court.
In determining whether to grant an application under subsection (4), the Grand Court shall consider —
the nature and complexity of the action or proceedings;
the expense or risk involved in the action or proceedings; and
any other factors as the Grand Court considers relevant.
The Grand Court in determining an application under subsection (4) shall not approve a contingency fee which exceeds forty per cent of the total amount awarded, of any amount obtained by the client or of the value of any property recovered in the action or proceeding, however the amount or property is recovered.
A contingency fee agreement shall not include in the fee payable to the attorney-at-law, in addition to the fee payable under the agreement, any amount arising as a result of an award of costs or costs obtained as part of a settlement, unless —
within ninety days of the execution of the agreement, the attorney-at-law and client jointly apply to a judge of the Grand Court for approval to include the costs or a proportion of the costs in the contingency fee agreement because of exceptional circumstances; and
the judge is satisfied that exceptional circumstances apply and approves the inclusion of the costs or a proportion of the costs, subject to subsection (6).
A contingency fee agreement that is subject to approval under subsection (4) or (7) is not enforceable unless it is so approved.