Having a tough time finding a clear cut answer to this: if my firm is in state a, the client lives in state b, and the case is being litigated in state c; which state law controls the contingent fee agreement? Example is that New Jersey has some restrictions on attorneys fee percentages. We aren’t there but if the client is from NJ we always abide by their rules even if the case is in our state. Thoughts?

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I would assume the law that controls is whatever is included as a clause in the retainer agreement between you and your client.

Generally it’s going to be the state where the litigation is venued (then your engagement agreement might be able to contract around that) byt more than a question of state law, you need to check the rules of professional conduct in stages a, b, and c as certain fee agreements may be an ethics violation and you’re exposed in all three states.

I represent small and mid-sized law firms as outside General Counsel. Feel free to DM me if you ever want to chat law firm risk management!

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