CONTINGENT FEE AGREEMENT
(Revised 3-31-25)
This Contingent Fee Agreement ("Agreement") is entered into between * * ("Client") and Litco ABS, Inc. (“Litco Law” or “Referring Counsel”) and Ethen Ostroff Law, P.C. ("EOL" or “Trial Counsel”) (collectively “Attorneys”) to provide legal representation with respect to Client’s workers’ compensation case against * and their workers’ compensation insurance carrier/TPA, if any (collectively “Employer” or “Defendants”).
This agreement is effective as of the date this Agreement is signed by Client and the Attorneys below.
1.Purpose and Scope of Representation
Attorneys agree to provide legal services to Client in connection with an injury occurring within the course and scope of Client’s employment with Employer on or around 
* .
The parties agree that this representation is limited to legal services related to this incident and Claimant’s rights under the Pennsylvania Workers’ Compensation Act.
This Agreement does not include any other legal services, such as representation concerning other matters or claims. This Agreement does not include representation in other jurisdictions, even if such claim arises from the same facts or injuries as those giving rise to a claim in Pennsylvania.
Any change to the scope of Attorneys representation must be in writing. Should Client require additional representation other than on the claims or jurisdiction identified here, Referring Attorney may, at their discretion, refer Client to other attorneys.
Further, the Parties also agree that Attorneys do not have any obligation under this Agreement to file or handle any appeal from an adverse verdict or judgment or any other appeal arising from this matter.
2.Attorney Fee
In exchange for Attorneys’ legal representation, Client agrees to pay an attorney fee consistent with the Pennsylvania Workers’ Compensation Act. The terms are as follows:
If Client is not receiving indemnity benefits or is attempting to establish entitlement to additional indemnity benefits, a twenty percent (20%) attorney’s fee will be deducted and paid on all back-due indemnity benefits and statutory interest secured by Attorneys’ representation. An ongoing twenty percent attorney’s fee will also be deducted and paid on all future and ongoing indemnity benefits secured by Attorneys’ representation.
If Client is already receiving indemnity benefits, a twenty percent attorney’s fee will commence on ongoing indemnity benefits once Employer’s request to immediately stop benefits (known as a “supersedeas request”) is denied or deemed denied by function of law.
If Attorneys’ representation results in the assessment of a penalty against Defendants for violation of the Pennsylvania Workers’ Compensation Act, a twenty percent attorney’s fee will be deducted from that penalty.
If Attorneys’ representation results in the payment of previously denied medical bills, Client agrees that Attorneys, at Trial Counsel’s sole discretion, may seek a twenty percent attorney’s fee on said medical bills.
Trial Counsel agrees to defend, indemnify, and hold Client harmless against any efforts by medical providers to recoup this fee from Client.
Trial Counsel must declare on the trial record their intent to seek a fee on any medical benefits prior to a Workers’ Compensation Judge issuing a Decision approving said fee.
If Attorneys negotiate a settlement of Client’s Workers’ Compensation matter under Section 449 of the Workers’ Compensation Act, known as a Compromise and Release, Attorneys are entitled to a twenty percent attorneys fee on Claimant’s settlement proceeds.
Should a Workers’ Compensation Judge order Defendants to pay Client’s attorney fee under Section 440 of the Pennsylvania Workers’ Compensation Act, Client agrees to a reasonable hourly billable rate of $300.00 per attorney, which will be billed directly to the Employer with a breakdown of time spent on the litigation.
If attorney fees are awarded by the Judge, Client will not owe a fee on past-due indemnity benefits, and Trial Counsel will not seek a fee on medical benefits; however, a twenty percent attorney’s fee will still be deducted and paid on all future and ongoing indemnity benefits secured by Attorneys’ representation.
Client agrees a request for payment of Attorney Fees under Section 440 will be at the sole discretion of Trial Counsel depending on the specific facts of the case.
3.Division of Work and Fees Between Attorneys
Attorneys are co-counsel in this representation and are entitled to share in the attorney fee.
Attorneys will divide the attorney fee between them, with Referring Counsel receiving 45% and Trial Counsel receiving 55% of the fee. This division of fee will never increase the total amount of attorney fees owed by Client. All fees will be made payable to Trial Counsel and Referring Counsel’s share will be paid by Trial Counsel.
The Attorneys are each jointly responsible for this representation.
Referring Counsel will have primary responsibility for client intake, initial investigation, and coordinating with various other local counsel, if any. Referring Counsel will remain available to Client throughout the matter for consultation and assistance.
Trial Counsel will have primary responsibility for any litigation occurring within the Commonwealth of Pennsylvania, including but not limited to pleadings, court appearances, depositions, negotiations, and written arguments/submissions.
Client is aware of and agrees to this division of work and fees between Attorneys.
4. Costs
Trial Counsel agrees to advance, on Client’s behalf, any reasonable investigation and litigation costs associated with this matter. This includes, for example, but is not limited to, costs associated with the service of pleadings, obtaining records for expert witnesses, and retaining expert witnesses for testimony. For these costs advanced by Trial Counsel, Client agrees that Defendants may reimburse Trial Counsel directly if so ordered by a Workers’ Compensation Judge. This paragraph is subject to the following provisions:
If Trial Counsel and Client disagree on whether a certain cost is necessary or prudent, Trial Counsel may decline to advance that cost. In such an event, Client may elect to pay that cost out of their own pocket.
In the event of a recovery, Trial Counsel agrees to seek reimbursement of the above trial expenses directly from Defendants to the extent permitted by law.
For costs paid by Client, Trial Counsel agrees to seek reimbursement by Defendants; however, Client understands that this may fall within the discretion of the Workers’ Compensation Judge as to whether such costs were “reasonable” or reimbursable. If the Judge declines to order a reimbursement of said costs, Client understand that they cannot seek reimbursement from Attorneys and must bear those costs on their own.
If no recovery is obtained and Client acted in good faith, Client will not be responsible for any costs advanced by Trial Counsel.
Client is acting in good faith if they do not violate any of the provisions of Paragraph 7 of this agreement.
If Client fails to act in good faith, Trial Counsel reserves the right to seek reimbursement of reasonable litigation costs associated with Client’s representation.
5.Liens
Client understands that certain liens may exist upon Client’s recovery in this matter and that these must be paid from any recovery received as required by law. These liens include, but are not limited to, Medicare, Medicaid, Social Security, short/long-term disability policies, child support obligations, and litigation loans.
6.Disbursement of Proceeds
Client understands and agrees that, before any settlement or verdict proceeds are disbursed, any third-party interests such as Medicare, Medicaid, and other medical provider liens must be investigated and satisfied. The resolution of governmental and medical liens may require the engagement of additional firms at additional expense, which will be paid by Client.
7.Client's Obligations to Cooperate and Keep Firm Informed
Client agrees to always be truthful with Attorneys, cooperate fully with Attorneys, provide all information known to Client relevant to the claim, execute all documents needed to prosecute the claim, and attend meetings and hearings as requested by Attorneys.
Client also agrees to respond promptly to communications and requests for information from Attorneys and to provide and promptly update all their requested contact information so that Attorneys may effectively and quickly communication with them. Failure to do so may require that Attorneys withdraw from this representation. Client understands that Attorneys cannot effectively represent them without their cooperation or if Client does not maintain good and responsive communication with them.
Client specifically agrees to keep Attorneys informed of any applications for government benefits or changes in current eligibility that may be affected by any award from a verdict or settlement. The Client also agrees to keep the Firm informed of all bills, liens, and related correspondence from any health care provider or governmental agency.
8.Discharge and Withdrawal
Client may terminate Attorney’s representation at any time by giving written notice to Attorneys.
Attorneys may terminate their representation with Client's consent or for any other reason permitted by the applicable Rules of Professional Conduct. If this occurs, Attorneys will give written notice to Client and the appropriate judicial or administrative body, if any.
9.Endorsement and Disbursement of Settlement/Verdict Proceeds
Client grants each of Attorneys a limited Power of Attorney to endorse their name on any settlement or verdict drafts or checks resulting from the resolution of their claim or receiving a judgment. These funds will be deposited into Attorneys’ escrow account for distribution.
Any net proceeds due to the Client will be held in trust in Attorneys’ escrow account. These proceeds will remain in the account until all liens have been satisfied pursuant to Paragraphs 5 and 6 of this Agreement and the remaining net sum will be disbursed to Client.
10.Power of Attorney
The Client authorizes the Firm to obtain and examine all records pertaining to the Client's case. A photocopy of this authorization shall be as effective as the original. Client agrees to promptly execute further any further needed authorizations for this purpose.
11.Authorization for Release of Information
Client agrees to execute, and grants Attorneys permission to date and submit, Authorization for the Release of Information forms as necessary to obtain relevant medical records. Client acknowledges that this authorization may be revoked in writing at any time unless action has already been taken in reliance on it.
12.Disclosure and Consent to Sharing of Records
Client consents to Attorneys sharing medical and other pertinent records and information with third parties who may assist in reviewing them confidentially for the sole purpose of handling this matter. Third parties shall sign confidentiality agreements before receiving any records or information.
13.Dispute Resolution
In the event of any dispute, claim, question, or disagreement arising out of or relating to this Agreement or any breach of this Agreement, the Parties shall use their best efforts to settle such disputes, claims, questions, or disagreement. To this end, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.
If they do not reach such solution within a period of 30 days, then upon notice by either Party to the other, disputes, claims, questions, or differences shall be finally settled by mediation administered by the American Arbitration Association and consistent with Pennsylvania law.
If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration under the rules of the American Arbitration Association. The arbitrator's award will be final, and judgment may be entered upon it by any court having proper jurisdiction.
In the event of a dispute resulting in legal action, the prevailing party shall be entitled to recovery of all legal costs involved, including reasonable attorney's fees.
14.File Retention Policy
Attorneys’ policy is to electronically maintain documents and records for seven years following the conclusion of the representation. Client may request an electronic copy of their file prior to the expiration of this time at no charge. Client agrees that Attorneys have no obligation to maintain or provide client file materials in paper form.
15.Entire Agreement; Any Changes in Writing
This Agreement contains the entire agreement between the Parties. Any modifications shall be made in writing or verbally on the official trial record consistent with Paragraph 2(d).
16.Choice of Governing Law and Rules of Professional Conduct
Between Client and Trial Counsel. Because Trial Counsel is a law firm practicing and operating in Pennsylvania, the portions of this agreement between Client and Trial Counsel are entered into under and in accordance with Pennsylvania law, including but not limited to the Pennsylvania Rules of Professional Conduct and other applicable Pennsylvania rules that regulate the conduct of lawyers and law firms. Any disagreement arising from or in connection with Trial Counsel’s primary responsibility as set forth in Paragraph 3 of this Agreement shall be governed in all respects by the laws of Pennsylvania, including the Pennsylvania Rules of Professional Conduct and other Pennsylvania rules and law governing the conduct of attorneys, notwithstanding its conflicts of law provisions. Any fee dispute between Trial Counsel and Client shall be submitted to fee arbitration. For all other disputes, Client and Trial Counsel agree to submit disputes between them to mediation and binding arbitration in accordance with Pennsylvania law. Provided, however, that nothing in this paragraph is intended to subject Referring Counsel to the application of any Pennsylvania law or rules.
Between Client and Referring Counsel. Because Referring Counsel is a law firm practicing and operating in Arizona, the portions of this agreement between Client and Referring Counsel are entered into under and in accordance with Arizona law, including but not limited to the Arizona Rules of Professional Conduct and other applicable Arizona rules that regulate the conduct of lawyers and law firms. Any disagreement arising from or in connection with Referring Counsel’s primary responsibility as set forth in Paragraph 3 of this Agreement shall be governed by in all respects by the law of Arizona and other applicable Arizona rules that regulate the conduct of lawyers and law firms, notwithstanding its conflicts of law provisions.
The Parties agree that the predominant effect of Referring Counsel’s representation of Client will be in Arizona, where Referring Counsel’s primary office is located and where its lawyers are licensed. The parties intend that this Agreement and the attorney-client relationship created between Client and Referring Counsel will be governed by Arizona law, to the greatest extent permitted by law, even if litigation contemplated as part of the scope of this representation is filed or pending in another forum, and even if there is co-counsel for Client on this matter admitted in another jurisdiction.
17.Client Review and Receipt of Copy of Agreement
Client has the right to have this agreement reviewed by an independent law firm before signing.
Client may also review this Agreement outside of Attorneys’ offices or presence.
Attorneys' representation begins only after Client signs this Agreement Client is encouraged to contact Attorneys immediately with any questions or concerns about this Agreement. By signing this Agreement, Client confirms they have read and understood this Agreement in full and agree to its terms. By signing, Client acknowledges receipt of a duplicate copy of this Agreement.
18.Use of Artificial Intelligence (AI) in Client Representation
To provide efficient and effective legal services, the Firm may utilize Artificial Intelligence (AI) tools in various aspects of client representation. AI can enhance our services by supporting tasks such as legal research, document review, and data analysis related to your case.
Please note the following:
- Human Oversight and Responsibility: AI tools are used solely as an aid. All AI-generated content is reviewed and verified by attorneys, who retain full responsibility for the legal work performed and the advice provided.
- Potential for Errors or Inaccuracies: AI tools may occasionally produce inaccurate, incomplete, or biased information. All outputs generated through AI will be carefully reviewed before being used in your matter.
- Confidentiality and Data Security: The Firm will take reasonable steps to protect the confidentiality of your information when using AI tools. This includes evaluating the security of any AI system used and avoiding the entry of confidential data into public or unsecured platforms unless appropriate safeguards are in place and your consent has been obtained.
- Billing Practices: Fees will reflect the reasonable value of services rendered, based on the time and effort of attorneys and staff. Increased efficiency through AI will not result in inflated charges or billing for time saved. Any direct costs related to the use of AI tools will be disclosed and included in billing statements.
- Client Communication and Consent: We are committed to transparency regarding the use of AI in your representation. Please raise any questions or concerns you may have. Informed consent will be obtained before AI tools are used in any way that could significantly impact your case or involve highly sensitive information.
By signing this agreement, you confirm that you have read and understood this disclosure regarding the use of AI in your legal representation and consent to its use in accordance with these terms and applicable ethical standards.
Upon Client request, an accurate translation of this Agreement will be provided to them in the language of their choice; however, this executed document in English shall serve as the official Agreement between the Parties. Client has the right to have the translation reviewed by an interpreter of their choice.
Executed on *