Failure To Satisfy Statutory Criteria Voids Contingency Fee Agreement


In Arnall v. Superior Court (Liker), 2010 DJDAR 17619 (2010), the California Court of Appeal, Second District decided an important case involving the statutory requirements for contingency fee agreements. The bottom line is: unless a contingency fee agreement satisfies the statutory criteria, including a statement that the fee is subject to negotiation, it is voidable.

Alan Liker (“Liker”) entered into an agreement with Dawn Arnall (“Arnall”) and Ameriquest Mortgage Co. (“Ameriquest”) to provide advisory services. Under the agreement, Liker was to receive $20,000 per month for nine months, and potentially a success fee under certain conditions.

Subsequently Arnall and Ameriquest terminated the service agreement on the basis that they were void under Business and Professions Code Section 6147 which requires an explicit statement to be contained in contingency contracts that the success fee is not set by law but is subject to negotiation. Liker sued, and Arnall, Ameriquest and the defendants petitioned for summary adjudication. The trial court denied summary adjudication, and the parties sought review.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Hinshaw & Culbertson LLP | Attorney Advertising

Written by:


Hinshaw & Culbertson LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.