February 22, 2013 - Oregon State Bar

OREGON STATE BAR
Board of Governors Agenda
Meeting Date: February 22, 2013
From:
Sylvia E. Stevens, Executive Director
Re:
Revision of Model Explanation of Contingent Fee Agreement
Action Recommended
Approve the proposed revision of the Model Explanation of Contingent Fee Agreement
to conform to the recent amendment of Oregon RPC 1.8(e).
Background
ORS 20.340 governs contingent fee agreements. In addition to being written in “plain
and simple language,” the terms and conditions must be explained to the client “in compliance
with a model explanation” prepared by the Oregon State Bar before the client signs the
agreement.
The current version of the Model Explanation recites that the client must repay any
money advanced for filing fees and other expense “whether the case is won or lost.” With the
recent amendment of Oregon RPC 1.8(e), 1 the language in the Model Explanation is no longer
correct in all cases. Rather, as amended, RPC 1.8(e) allows (but does not require) the
repayment of costs to be contingent upon the outcome of the matter. It also allows a lawyer
representing an indigent client to pay costs and expenses on behalf of the client.
Staff has drafted a proposed revision of the Model Explanation for the BOG’s
consideration and approval. The proposed revision sets out three alternatives that the lawyer
may choose in undertaking the representation: (1) the client repays the costs regardless of the
outcome of the matter; (2) the client repays the costs only if the lawyer recovers money for the
client; or (3) the client does not repay the costs regardless of the outcome of the case.
We have publicized the change in Oregon RPC in a Bulletin column and in various bar
news outlets. Nevertheless, many practitioners may be unaware of the change until a revised
Model Explanation is posted online and incorporated into the Fee Agreement Compendium.
1 Approved by the HOD November 2, 2012 and adopted by the Supreme Court November 29, 2012. Effective date
January 1, 2013.