A damage-based agreement (DBA) template is a legal contract that outlines the terms and conditions for a client to pay a lawyer or law firm a percentage of the compensation awarded in a successful case. This type of agreement is commonly used in personal injury cases, where the lawyer takes on the case on a contingency basis, meaning they only get paid if they win.
DBA templates are important because they protect both the client and the lawyer. The client knows exactly how much they will owe the lawyer if they win the case, and the lawyer can ensure that they are fairly compensated for their work.
When creating a DBA template, it`s important to include the following elements:
1. Description of the case: This section should provide a brief overview of the case, including the type of claim, the parties involved, and the potential damages awarded.
2. Responsibilities of the lawyer: This section should outline the lawyer`s responsibilities, including research, investigation, court appearances, and negotiations.
3. Percentage of compensation: This section should state the percentage of the compensation that the lawyer will receive if the case is successful. This percentage can vary depending on the type of case and the complexity of the legal proceedings.
4. Costs: This section should outline any costs that the client will be responsible for, such as court fees or expert witness fees. It should also state whether these costs will be deducted from the compensation awarded or paid separately.
5. Termination: This section should outline the circumstances under which the agreement can be terminated, such as if the client decides to hire a different lawyer or if the case is settled out of court.
6. Confidentiality: This section should state that all information related to the case is confidential and cannot be disclosed without the client`s permission.
Overall, a well-written DBA template is crucial for protecting both the client and the lawyer in a personal injury case. It`s important to work with a legal expert to ensure that the template is tailored to the specific needs of the case and complies with all relevant laws and regulations.