CONTRACT & LIMITED POWER OF ATTORNEY
WRONGFUL REPOSSESSION / CONSUMER CLAIMS REPRESENTATION
This Agreement is made between {name} (“Client”) and STC LAW FIRM, PLLC, together with its associated and co-counsel attorneys (collectively, “Attorneys”).
1. RETENTION AND PURPOSE OF REPRESENTATION
Client retains Attorneys to investigate, negotiate, pursue, settle, and, when appropriate, litigate claims arising from the repossession or attempted repossession of Client’s motor vehicle and related collection activity.
Potential claims may include claims under the Fair Debt Collection Practices Act (“FDCPA”), applicable state consumer-protection and commercial laws, the Uniform Commercial Code as adopted by applicable states, conversion, trespass, breach of peace, and other claims supported by the facts and applicable law.
No particular claim or cause of action is guaranteed.
2. SCOPE OF REPRESENTATION
Attorneys may communicate with creditors, lenders, debt collectors, repossession companies, repossession forwarders, towing companies, storage companies, insurers, attorneys, witnesses, governmental agencies, law-enforcement agencies, property owners, property managers, and other persons reasonably necessary to investigate and pursue Client’s matter.
Attorneys may obtain records, investigate facts, preserve evidence, make demands, negotiate claims, negotiate settlements, obtain settlement documents, file or defend claims when Attorneys determine appropriate, associate other attorneys or firms when appropriate, and take other lawful actions reasonably necessary to carry out the representation.
Client authorizes Attorneys to determine the ordinary means and strategy used to pursue the representation, subject to decisions that applicable law or professional-conduct rules reserve to Client.
3. ATTORNEY DISCRETION; CASE CLASSIFICATION; NO GUARANTEE
Attorneys do not guarantee any recovery, settlement, judgment, litigation result, or particular value for Client’s matter.
Attorneys may classify Client’s matter according to its facts, available evidence, damages, applicable law, litigation risk, economics, collectability, anticipated defense costs, and other factors Attorneys reasonably consider relevant.
Attorneys may decline to pursue a particular defendant, theory, claim, remedy, or litigation strategy when Attorneys determine in their professional judgment that doing so is not warranted, economical, supported by available evidence, or consistent with the agreed scope of representation.
Client understands that Attorneys may determine that a matter is appropriate for expedited settlement rather than litigation.
4. CONTINGENT FEE FOR GENERAL RECOVERIES
Except for a settlement expressly governed by Section 6, Attorneys’ contingent fee will be:
40% OF THE GROSS RECOVERY
obtained for Client by settlement, judgment, arbitration award, or otherwise, plus any separately awarded or negotiated attorney’s fees to the extent permitted by applicable law and applicable professional-conduct rules.
Costs and expenses will be handled as provided in Section 10.
Any fee remains subject to applicable law and professional-conduct requirements.
5. FDCPA DAMAGES AND OTHER POTENTIAL RECOVERIES
Client understands that the FDCPA may permit recovery of actual damages, additional statutory damages of up to $1,000 for an individual action, and, in a successful action, costs together with a reasonable attorney’s fee.
Client understands that $1,000 is not necessarily the maximum potential value of Client’s claims because actual damages and remedies available under other federal or state laws may exist.
Attorneys will therefore evaluate Client’s available evidence before determining whether Client’s matter is appropriate for the expedited early-resolution program described below.
6. EXPEDITED EARLY-RESOLUTION PROGRAM AND CLIENT’S ADVANCE SETTLEMENT AUTHORITY
A. PURPOSE OF PROGRAM
Attorneys maintain an expedited early-resolution program for matters that Attorneys determine, after professional review, involve limited damages, litigation risk, limited available evidence, nuisance-value considerations, or other circumstances making prompt resolution appropriate.
The program is intended to permit Attorneys to resolve qualifying matters efficiently without requiring repeated authorization from Client after Client has already made and documented the settlement decision described in this Section.
B. STANDARD EARLY-RESOLUTION TERMS
Unless Attorneys and Client agree otherwise in writing, the standard qualifying settlement under this program is:
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TOTAL SETTLEMENT: $5,000.00
AMOUNT TO CLIENT: $1,000.00
ATTORNEY’S FEES AND COSTS: $4,000.00
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Client specifically acknowledges and agrees to this allocation.
C. CLIENT MAKES THE SETTLEMENT DECISION NOW
Client understands that the ultimate decision whether to settle Client’s claims belongs to Client.
CLIENT IS MAKING THAT DECISION NOW.
By signing this Agreement, Client expressly authorizes and directs Attorneys, in advance, to negotiate, accept, document, and complete a qualifying settlement without obtaining Client’s permission again at the time the settlement opportunity arises.
Attorneys may rely upon this advance authorization when:
Attorneys have classified Client’s matter as appropriate for the expedited early-resolution program;
the gross settlement is at least $5,000.00;
a settlement of exactly $5,000 provides $1,000.00 to Client and $4,000.00 to Attorneys as attorney’s fees and costs;
Attorneys do not know of a material change in circumstances making reliance upon Client’s advance authorization inappropriate; and
Client has not revoked this authority before Attorneys accept the settlement.
D. NO SECOND APPROVAL REQUIRED
Client specifically understands and agrees that Attorneys ARE NOT REQUIRED TO OBTAIN A SECOND APPROVAL from Client before accepting a qualifying settlement covered by this Section.
Attorneys may attempt to communicate with Client concerning a proposed or completed settlement, but Attorneys are not required to obtain an additional:
- telephone authorization;
- email authorization;
- text-message authorization;
- electronic signature;
- portal authorization;
- written authorization; or
- other confirmation
before accepting a qualifying settlement already authorized by this Agreement.
E. NON-RESPONSIVE CLIENT
Client agrees to keep Attorneys informed of Client’s current address, telephone number, and email address and to respond reasonably to communications concerning the representation.
Client nevertheless understands that Client may become unavailable or may fail to respond to Attorneys.
CLIENT’S FAILURE TO ANSWER OR RESPOND TO TELEPHONE CALLS, TEXT MESSAGES, EMAILS, LETTERS, PORTAL MESSAGES, OR OTHER COMMUNICATIONS DOES NOT REVOKE OR TERMINATE THE ADVANCE SETTLEMENT AUTHORITY CLIENT IS GRANTING IN THIS AGREEMENT.
Client understands that non-response itself does not create settlement authority.
Instead, Client is affirmatively granting settlement authority now by signing and initialing this Agreement, and subsequent non-response does not revoke that previously granted authority.
Accordingly, if Attorneys are unable to reach Client when a qualifying settlement opportunity arises, Attorneys may rely upon Client’s existing advance authorization and complete the qualifying settlement without obtaining another response from Client.
F. AUTHORITY GRANTED FOR QUALIFYING SETTLEMENTS
For a settlement authorized by this Section, Client authorizes Attorneys, to the extent permitted by applicable law, to:
formulate and send settlement demands;
determine the amount initially demanded;
negotiate with defendants and their representatives;
reject offers below the authorized threshold;
accept a qualifying settlement of at least $5,000;
communicate Client’s acceptance to a settling defendant;
receive settlement agreements and releases;
negotiate nonmonetary settlement provisions reasonably necessary to complete the settlement;
receive settlement funds;
deposit settlement funds into an appropriate attorney trust account;
execute or endorse settlement-related documents on Client’s behalf when specifically permitted by applicable law and this Agreement;
execute or authorize a release limited to the settling defendant and claims included within the settlement, when specifically permitted by applicable law;
deduct authorized attorney’s fees and costs;
prepare a settlement statement;
distribute Client’s net settlement proceeds; and
take other lawful ministerial actions reasonably necessary to complete a settlement
Client has authorized under this Section.
Nothing in this Agreement authorizes Attorneys to sign Client’s name or execute a document on Client’s behalf when applicable law requires Client personally to execute that particular document.
G. SEPARATE DEFENDANT SETTLEMENTS
Client understands that a repossession matter may involve multiple potentially responsible parties, including a creditor, lender, debt collector, repossession forwarder, repossession company, towing company, storage company, or other person or entity.
Client authorizes Attorneys to negotiate and resolve claims separately against different defendants when Attorneys determine that defendant-specific settlements are appropriate.
Unless the settlement agreement expressly provides otherwise, settlement with one defendant does not release claims against another defendant.
Attorneys will endeavor to structure defendant-specific releases so that claims against nonsettling parties are preserved.
H. MATERIAL CHANGE SAFEGUARD
Attorneys will not rely upon this advance authority when Attorneys know that circumstances have materially changed in a manner that makes reliance upon the advance authorization inappropriate.
Relevant circumstances may include newly discovered evidence of:
significant bodily injury;
medical treatment;
substantial lost wages or lost income;
substantial documented economic damages;
significant property damage;
unusually aggravated misconduct;
substantial actual damages;
exceptionally strong video or documentary evidence; or
another circumstance materially increasing the potential value or changing the nature of Client’s claims.
Attorneys may remove Client’s matter from the expedited program and individually evaluate it.
Removal from the program does not constitute a representation or guarantee that Client’s matter has any particular value.
I. CLIENT'S RIGHT TO REVOKE ADVANCE AUTHORITY
Client may revoke the advance settlement authority contained in this Section at any time before Attorneys accept a settlement.
Revocation must be communicated to Attorneys in writing and becomes effective when actually received by Attorneys.
Revocation does not invalidate a settlement Attorneys accepted before receiving Client’s revocation.
J. CLIENT'S SPECIFIC ACKNOWLEDGMENT
PLEASE READ CAREFULLY AND SIGN BELOW.
I UNDERSTAND THAT THE DECISION WHETHER TO SETTLE MY CLAIM BELONGS TO ME.
I AM MAKING THAT DECISION IN ADVANCE FOR THE SPECIFIC EARLY-RESOLUTION PROGRAM DESCRIBED ABOVE.
IF MY ATTORNEYS DETERMINE THAT MY CASE QUALIFIES, I AUTHORIZE THEM TO ACCEPT AND COMPLETE A QUALIFYING SETTLEMENT WITHOUT CONTACTING ME AGAIN FOR PERMISSION.
I UNDERSTAND THAT I DO NOT GET A SECOND VOTE OR APPROVAL REQUIREMENT FOR A SETTLEMENT THAT FALLS WITHIN THE AUTHORITY I AM GRANTING HERE, UNLESS I REVOKE THAT AUTHORITY BEFORE THE SETTLEMENT IS ACCEPTED OR A MATERIAL CHANGE MAKES RELIANCE UPON IT INAPPROPRIATE.
I UNDERSTAND THAT IF I STOP ANSWERING TELEPHONE CALLS, EMAILS, TEXT MESSAGES, LETTERS, OR OTHER COMMUNICATIONS, MY FAILURE TO RESPOND DOES NOT CANCEL THE SETTLEMENT AUTHORITY I AM GRANTING TODAY.
I UNDERSTAND THAT A STANDARD $5,000 SETTLEMENT UNDER THIS PROGRAM PROVIDES $1,000 TO ME AND $4,000 TO ATTORNEYS AS ATTORNEY’S FEES AND COSTS.
I UNDERSTAND THAT SETTLEMENT WILL REQUIRE THE RELEASE OF CLAIMS AGAINST THE SETTLING PARTY OR PARTIES.
I AUTHORIZE THIS EARLY-RESOLUTION PROGRAM WITH MY SIGNATURE BELOW.
7. CASES EXCLUDED FROM AUTOMATIC EARLY RESOLUTION
Attorneys will screen Client’s matter before relying upon Section 6.
Information suggesting significant personal injury, medical treatment, substantial lost income, substantial property loss, unusually serious breach-of-peace conduct, viable claims for material actual damages, or other facts materially increasing potential value may cause Attorneys to remove Client’s matter from the expedited program.
Attorneys retain professional discretion to determine that a matter should not be resolved through the expedited program even if it otherwise appears eligible.
8. SETTLEMENT COMMUNICATIONS AND OFFERS
Client authorizes Attorneys to make settlement demands and negotiate with potentially responsible parties without obtaining Client’s approval for each communication, counteroffer, demand, or negotiating position.
For matters falling outside Section 6, Attorneys will obtain Client’s settlement decision as required by applicable law and professional-conduct rules.
For matters falling within Section 6, the advance authority granted in that Section controls.
9. SETTLEMENT FUNDS AND DISTRIBUTION
Settlement proceeds may be deposited into an attorney trust account as required by applicable law.
Attorneys will safeguard settlement proceeds and distribute them in accordance with the settlement, this Agreement, applicable law, and applicable trust-account requirements.
Attorneys will provide Client with an appropriate settlement statement showing the gross recovery, applicable attorney’s fees, costs, other authorized deductions, and the amount payable to Client.
Client is responsible for keeping Attorneys informed of Client’s current mailing address and payment information necessary to distribute Client’s proceeds.
10. COSTS AND EXPENSES
Attorneys may advance reasonable costs and expenses associated with investigating and pursuing Client’s matter.
Unless prohibited by applicable law, authorized costs may be reimbursed from a recovery as disclosed on Client’s settlement statement.
No provision of this Agreement authorizes an unreasonable fee or a fee prohibited by applicable law.
11. CLIENT DUTIES
Client agrees to:
provide complete and truthful information;
preserve documents, photographs, recordings, text messages, emails, account records, notices, contracts, videos, and other relevant evidence;
provide requested documents and information reasonably necessary to evaluate Client’s matter;
promptly notify Attorneys of any new damages or significant facts;
promptly notify Attorneys of communications from defendants or their representatives;
promptly notify Attorneys of changes in Client’s address, telephone number, or email address;
notify Attorneys of bankruptcy filings or proceedings;
avoid destroying relevant evidence;
avoid knowingly making false or misleading statements concerning the matter; and
cooperate reasonably with Attorneys when cooperation is necessary to pursue Client’s claim.
Client understands that failure to cooperate may materially impair Attorneys’ ability to represent Client.
12. LIMITED POWER OF ATTORNEY AND AUTHORITY TO ACT
Client appoints Attorneys as Client’s attorneys-in-fact solely for purposes reasonably necessary to carry out this representation and the settlement authority expressly granted by this Agreement.
This limited authority may include communicating claims, requesting and obtaining records where legally permitted, communicating with defendants and their representatives, making demands, negotiating settlements, receiving settlement documents and funds, and performing lawful ministerial acts necessary to complete a settlement already authorized by Client.
This limited power of attorney does not transfer ownership of Client’s claim to Attorneys.
It does not authorize Attorneys to take an action that applicable law requires Client personally to take.
The authority terminates when the representation ends, except to the extent reasonably necessary to complete an already-authorized settlement or satisfy lawful obligations concerning settlement funds, records, liens, or other matters arising from the representation.
13. COMMUNICATIONS AND ELECTRONIC SIGNATURES
Client authorizes Attorneys to communicate through telephone calls, voicemail, text messages, email, electronic portals, electronic signature platforms, and United States mail using the contact information Client provides.
Client agrees that electronic signatures and counterparts may be treated as originals to the extent permitted by applicable law.
Client is responsible for keeping Attorneys informed of current contact information.
14. ASSOCIATION OF COUNSEL AND FEE SHARING
Client authorizes STC LAW FIRM, PLLC to associate or work with additional attorneys or law firms when Attorneys determine doing so would assist the representation, subject to applicable law and professional-conduct requirements.
Any division of attorney’s fees among lawyers or law firms will comply with applicable professional-conduct rules and will not increase Client’s total contractual fee solely because additional counsel is associated.
15. TERMINATION OF REPRESENTATION
Client may discharge Attorneys subject to applicable law and any lawful rights Attorneys may have concerning earned fees, costs, liens, or interests in a recovery.
Attorneys may withdraw from representation when permitted by applicable law and professional-conduct rules.
Client's revocation of the advance settlement authority in Section 6 does not automatically terminate this Agreement.
However, if Client revokes that authority, fails to cooperate, becomes persistently unavailable, provides materially false information, refuses to comply with reasonable requests necessary to pursue the representation, or otherwise makes continued representation impractical, Attorneys may reevaluate whether continued representation is appropriate and may withdraw when permitted by applicable law.
Nothing in this Agreement makes Client's rejection of a particular settlement, standing alone, an improper basis for withdrawal where withdrawal would violate applicable law or professional-conduct rules.
16. NO GUARANTEE OF SETTLEMENT OR RECOVERY
Client understands that Attorneys have made no promise or guarantee concerning:
whether Client has a valid claim;
whether any defendant will pay money;
the amount of any recovery;
the time required to resolve the matter;
whether litigation will be filed; or
whether Attorneys will ultimately determine that continued pursuit of the matter is warranted.
Any discussion of potential value is an evaluation and not a guarantee.
17. GOVERNING PROFESSIONAL OBLIGATIONS
Nothing in this Agreement requires or authorizes Attorneys to violate applicable law, court rules, trust-account requirements, or rules of professional conduct.
If a provision of this Agreement conflicts with a mandatory legal or ethical obligation applicable to Attorneys, the mandatory obligation will control and the Agreement will be interpreted accordingly.
18. SEVERABILITY
If any provision of this Agreement is determined to be invalid or unenforceable, the remaining provisions will continue in effect to the fullest extent permitted by law.
Any invalid provision should be construed as narrowly as reasonably possible to preserve the parties’ lawful intent.
19. ENTIRE AGREEMENT
This Agreement and any written addendum constitute the agreement between Client and Attorneys concerning this representation and supersede inconsistent prior fee understandings concerning this matter.
Any modification to this Agreement must be made in writing to the extent required by applicable law.
20. CLIENT ACKNOWLEDGMENT
Client acknowledges that Client:
has read or had the opportunity to read this Agreement;
has had the opportunity to ask questions;
has had the opportunity to seek independent legal advice concerning the Agreement;
understands the 40% general contingent-fee arrangement;
understands the separate $5,000 expedited early-resolution program;
understands the $1,000/$4,000 allocation;
understands the advance settlement authority granted in Section 6;
understands that subsequent non-response does not revoke that authority;
understands the right to revoke advance settlement authority before Attorneys accept a settlement; and
voluntarily agrees to these terms.
AGREED AND ACCEPTED
STC LAW FIRM, PLLC
By: _________________________________________________
Attorney Signature: ___________________________________
Date: _________________________________________________
CONDITIONAL ACCEPTANCE
Client's execution of this Agreement constitutes Client's request that STC LAW FIRM, PLLC undertake the representation.
Signing this Agreement does not by itself establish that the Firm has accepted the matter.
No attorney-client relationship is created unless and until STC LAW FIRM, PLLC affirmatively accepts the representation following its review.
The Firm may decline the representation in its professional discretion.
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EXHIBIT “A”
FOR STC LAW FIRM, PLLC
MCDONALD “DON” WORLEY
HOURLY RATE FOR PURPOSES WHERE APPLICABLE: $450.00 PER HOUR
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Printed Client Name: {name}
SSN / Last Four: {whatAre}
Executed Effective: {pleaseChoose48}
Client Signature: