Limitation on contingent fees - applicability.

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(1) (a) Except as otherwise provided in subsections (2) and (3) of this section, and notwithstanding any other provision of law, a contingent fee contract between a governmental entity and a private attorney shall:

  1. Require the private attorney to maintain and provide to the governmental entity on amonthly basis a contemporaneous record of the hours of legal services provided by individual attorneys, the nature of such services, and any court costs incurred during each month and in the aggregate from the effective date of the contingent fee contract;

  2. Require the private attorney, upon the successful resolution of the matter for whichthe private attorney was retained, to provide to the governmental entity a statement of the hours of legal services provided by attorneys, the nature of such services, the amount of court costs incurred, the total amount of the contingent fee, and the average hourly rate for legal services provided by attorneys; and

  3. Specify an alternative hourly rate, not to exceed one thousand dollars per hour, atwhich the attorney shall be compensated in the event that the statement provided by the attorney indicates an average hourly rate for legal services provided by attorneys of more than one thousand dollars per hour.

(b) The average hourly rate for legal services provided by attorneys shall be determined by dividing the amount of the contingent fee, less the amount of court costs incurred if said amount is part of the contingent fee, by the number of hours of legal services provided by attorneys. Clerical work, including but not limited to transcription, photocopying, and document filing and organization, shall not be considered legal services provided by attorneys even if an attorney performs such work.

  1. The limitations and requirements of subsection (1) of this section shall not apply toany contingent fee contract entered into by a governmental entity prior to August 6, 2003.

  2. The limitations and requirements of subsection (1) of this section shall not apply toany contingent fee contract entered into by a governmental entity if the contract is for legal services performed by an attorney in connection with the collection of debts or taxes owed to a governmental entity and was entered into pursuant to section 23-3.1-104 (1)(f) or (2)(i), 23-5113 (1), 24-30-202.4, or 39-21-114, C.R.S., or any other statutory provision that expressly authorizes or requires the payment of a portion of the moneys collected to an attorney retained to collect such debts or taxes.

  3. Compliance with this part 3 does not relieve a contracting attorney of any obligationor legal responsibility imposed by the Colorado rules of professional conduct or any provision of law.

Source: L. 2003: Entire part added, p. 926, § 1, effective August 6.


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