Malpractice Contract

KERRIGAN, ESTESS, RANKIN & MCLEOD

Attorneys' Employment Agreement

It is important to set out in writing what "we", Kerrigan, Estess, Rankin & McLeod and "you", the client, can expect from each other. Please read this document carefully; it may control the distribution of a significant amount of money.

We will devote the full professional ability and resources of the firm to your claim for damages arising out of your injury or loss occurring on or about up to and including an appeal, if necessary.

We will investigate, draft and file court papers, research legal issues as necessary and present your claim in a manner designed to maximize your recovery.

1. CONTINGENT FEE

For such professional services you agree to pay an attorneys' fee as set forth below of the total amount recovered, whether by settlement or suit:

33 1/3% of any recovery up to $1 million before the time of filing an answer or the demand for appointment of arbitrators or agreement to mediate;

Or if settled thereafter:

(a) 40% of any recovery up to $1 million from the time of filing an answer or the demand for appointment of arbitrators or agreement to mediate through the entry of judgment; and,

(b) 30% of that portion of any recovery between $1-2 million; and,

(c) 20% of that portion of any recovery in excess of $2 million; or

If all defendants admit liability at the time of filing their answer and request a trial on damages:

(a) 33 1/3% of any recovery up to $1 million through trial; and,

(b) 20% of that portion of any recovery between $1 - 2 million; and,

(c) 15% of that portion of any recovery in excess of $2 million.

An additional 5% of any recovery after notice of appeal is filed or post-judgment relief or action is required for recovery on the judgment.

In the event of a settlement with structured or deferred payments, the attorneys' fee shall be calculated on the present value of the settlement and paid from the first funds collected.

In the event that a court awarded fee is collected which exceeds the percentage as set forth above, the court awarded fee shall apply in lieu of the above amounts. The total amount recovered, as set forth above, includes any attorneys' fees recovered from an outside party.

This employment is based upon a contingent fee basis and unless a recovery is made, there will be no obligation for attorneys' fees or costs incurred on your behalf by this firm.

2. COSTS

Costs are expenses we incur to represent you. Normal office expenses are not included, we pay those. You are obligated to pay for all costs associated with your particular case. For example, court reporter costs, outside investigative costs, medical reports from your doctors or doctors we engage to examine you, hospital or medical records, deposition travel costs. We charge actual airfare for any travel. We charge all other out of pocket expenses when we have to travel for any part of preparing your case. We do not charge for legal research or for secretarial or other clerical services. We do charge for copying, computer database searches, facsimile transmissions, and postage. A complete list of the standard charges incurred in a typical case are available to you at anytime.

Investigative costs. From time to time we may need investigative services. They range from $30.00 per hour to $60.00 per hour depending on the complexity of the case. In a typical automobile accident case, the charges are almost always at the lower rates and rarely exceed $1,000.00 unless the case is tried. In complex cases the charges will be greater depending on the complexity of the matters being investigated. We will furnish a list of the investigators we use, their backgrounds, and qualifications upon request.

In highly complex cases specialized investigators may be needed, these will be discussed with the client prior to hiring.

It is our policy that a meritorious claim will not be hindered or delayed by our client's inability to pay costs. If you are able to pay costs we will be pleased for you to do so. If you tell us that the payment of anything in advance of your recovery is a financial hardship, we will advance all costs. If you wish us to advance those costs, please initial here _______ . The IRS has ruled that these costs may not be deducted by the firm as ordinary business expenses, thus they must either be paid by the client or loaned to the client. To fund these costs we have established a line of credit at a local bank. For each case, we will pass on only the interest expenses actually charged by the bank. Since this line of credit is backed by the firm's creditworthiness, the rate of interest will be approximately 2% over prime.

3. WITHDRAWAL OF ATTORNEYS

If, after reasonable investigation of the claim, the attorneys determine that it is not feasible to prosecute the claim, the attorneys shall have the right to withdraw from further representation of the client upon written notice, either before or after filing suit, and in such event the client shall not be obligated for any attorneys' fees. Upon withdrawal, substitution or discharge of the undersigned attorney, a motion to adjudicate a charging lien shall be filed requesting the Court to enter an order, that this action shall not be dismissed either voluntarily or by the Court prior to the disposition of this attomey's claim for a charging lien and requiring all parties to give notice to the discharged attorney of any proceedings intended to terminate the subject lawsuit or which affect the disbursal of proceeds which the client obtains or recovers either by judgment or settlement and asking the Court to reserve jurisdiction to determine the amount of the lien and to enforce the lien in proceedings subsequent to the entry of a final judgment; and that further, if a suit has not been filed, a copy of this portion of this attomey's fee agreement will be sent to the insurance carrier or the defendant, setting forth a claim for compensation for services performed; and the signing of this contingency fee contract is an agreement by the client to protect the undersigned attorney for reasonable fees based on a reasonable hourly compensation for services performed. This paragraph doesn't apply if the attorneys exercised their right to withdraw from the case according to the above paragraph.

4. ASSOCIATE COUNSEL

We approve the association of the firm of _________________________ and agree that the responsibility for handling the case shall be home by both firms, and the attorneys' fees set forth above will include fees due associate counsel which shall be divided based upon the work done by each participating firm. The associate counsel shall assume the same legal responsibility for the performance of services as Kerrigan, Estess, Rankin & McLeod and shall sign and be bound by this contract.

5. STATEMENT OF CLIENT RIGHTS

The undersigned client has, before signing this contract, received and read The Statement of Client's Rights, and understands each of the rights set forth therein. The undersigned client has signed the statement and received a signed copy to keep to refer to while being represented by the undersigned attorney(s).

6. THREE DAY RIGHT TO CANCEL

This contract may be cancelled by written notification to the attorney at any time within 3 business days of the date the contract was signed, as shown below, and if cancelled the client shall not be obligated to pay any fees to the attorneys for the work performed during that time. If the attorneys have advanced funds to others in representation of the client, the attorneys are entitled to be reimbursed for such amounts as they have reasonably advanced on behalf of the client.

7. RECOVERY

The client expressly grants power to the attorneys to endorse and deposit into their Trust Account any checks in the client's name, and authorizes the attorneys to deduct fees, costs and expenses, and to pay all hospital and medical bills from the client's share of the recovery. Any unpaid bills for medical care shall remain the client's obligations.

8. ESTATE, GUARDIANSHIP AND/OR PROBATE

Sometimes in the cases of an estate, guardianship, or probate matter, we will be required to hire an attorney outside of our office that specializes in this area. Of course, we will protect these costs and fees out of the recovery of your claim and you will not be held liable for these costs and fees should a recovery not be made.

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