The model agreement set out below has been the subject of lengthy consultation with many personal injury practitioners and consumer groups.

It has benefited from the comments they have made together with those received at seminars run by the Society and the Association of Personal Injury Lawyers during the past two months.Use of the model agreement is not mandatory.

However, many of the issues which it covers are requirements of the Conditional Fees Agreements Regulations 1995.

These are expected to be brought into force shortly.

Some aspects of the agreement will be compulsory for those firms which intend to offer accident line protect, the after-the-event insurance policy devised by the Society.The model agreement is the copyright of the Society.

Firms are licensed to reproduce it by word processor subject to reproduction of both content and layout of the printed form.

Set out below is the full text (context) of the agreement, but firms will need to purchase copies of the agreement in order to follow the correct typographical style (layout).

The model agreement, including the conditions, has had the benefit of advice from a plain English consultant on text and design.

It is hoped that clients will find it user friendly.Printed copies will be available for purchase from the Society's bookshop in mid July.

Order forms will shortly be sent to personal injury practitioners for this and the other material which the Society is producing.There will also be a leaflet for clients, 'Conditional fees explained', which solicitors can give to their clients.

The leaflet will also be available to the public through citizens advice bureaux and other referral agencies.Conditional Fees - A Survival Guide, written by Michael Napier and Fiona Bawdon, will be published by the Society in July at the price of £14.95.

This is a practical guide not only to the model agreement but to all aspects of conditional fees.The timetable for conditional fees and accident line protect is set out below.

Future articles in the Gazette will deal with the Society's advice on the application of existing rules and principles of conduct, together with the terms of engagement of barristers.There will be a Law Society version of such terms, as it is likely that practitioners and their clients will find certain aspects of the Bar Council's model terms unacceptable.CONDITIONAL FEES TIMETABLENowMailing to accident line firms about accident line protect timetable.Early JulyAnticipated implementation of Conditional Fees Order and Regulations.10 to 17 JulyMailing of accident line protect (ALP) enrolment packs to accident line firms and details of the scheme sent to 5000 personal injury practitioners.Mid to late JulyPublication of 'Conditional fees explained', the Society's leaflet for clients, to practitioners and referral agencies; price £10 for 50 (including VAT).Mid to late JulyConditional Fees - A Survival Guide, written by Michael Napier and Fiona Bawdon, published by the Law Society.Early AugustDespatch of ALP material (user manual, policy certificates, client leaflets).Press packs and briefing material for local law society PROs despatched.Monday 14 AugustPublic launch of ALP, preceded by weekend press coverage.CONDITIONAL FEE AGREEMENTThe agreement is a legally binding contract between you a nd your legal representative.

The Law Society conditions are part of the agreement.

Before you sign, please read everything carefully.

Please also read 'Conditional fees explained', a Law Society leaflet we have given you.For an explanation of words like 'our disbursements', 'basic costs', 'win', and 'lose', see condition 3 of the Law Society conditions.Agreement date [...]We, the legal representative [...]You, the client [...]What is covered by the agreement-- Your claim for damages for personal injury suffered on [...]-- Any appeal by your opponent.What is not covered by the agreement-- Any counterclaim against you.-- Any appeal you make.Paying usIf you win the case, you are liable to pay our disbursements, basic costs and a success fee.

You may be able to recover our disbursements and basic costs from your opponent.

For full details, see conditions 4 and 6.If you lose the case, you pay our disbursements and your opponent's costs and disbursements.

For full details, see conditions 3(f) and 5.If you end the agreement before the case is won or lost, you pay our disbursements and basic costs.

If you go on to win the case, you pay a success fee.

For full details, see condition 7.If we end the agreement before the case is won or lost, see condition 7 for full details.Basic costsThese are for work done from now until the review date, [...]Our hourly rates are:-- Partner [...]-- Assistant solicitor [...]-- Legal executive [...]-- Trainee solicitor [...]The hourly rates are the same as would be charged if the work was done under a non-conditional fee agreement.Success feeThis is:-- [...]% of the basic costs; plus-- [...]% of the basic costs if an extra success fee is payable under condition 6.The total of the success fee and any barrister's uplift fee (see condition 6) will not be more than 25% of the damages or settlement you win.Value added tax (VAT)We add VAT, at the rate (now [...]%) that applies when the work is done, to the total of the basic costs and success fee.Our disbursements1.

Pay-as-you-go option.

You agree to pay our disbursements now and as the case goes on.2.

Variation.

Show any variation on paying our disbursements which would alter the details under 'paying us' above or in condition 3(f).Accident line protect insuranceYou agree to pay a premium of [£...] for accident line protect when you sign the agreement.

If you lose, accident line protect will cover our disbursements and your opponent's costs and disbursements.

It will not cover fees to your barristers or advocates.

The maximum cover is £100,000.Other pointsImmediately before you signed the agreement, we explained the following points to you.-- Legal aid.1.

Whether you can get legal aid for this case.2.

Under what conditions you can get legal aid.3.

How those conditions apply to this case.-- Costs and disbursements.1.

In what circumstances you may have to pay our disbursements and costs.2.

In what circumstances you may have to pay the disbursements and costs of your opponent.3.

In what circumstances you can get our bills checked by a court (known as 'taxation'), and how to do so.Extra conditionsThe following conditions are part of the agreement [...]SignaturesSigned for the legal representative.Signed by the client.LAW SOCIETY CONDITIONS1.

Our responsibilitiesWe must:-- always act in your best interests in pursuing your claim for damages and obtaining for you the best possible result, subject to our duty to the court;-- explain t o you the risks and benefits of taking legal action;-- give you our best advice about whether to accept any offer of settlement;-- at the outset, give you the best information possible about the likely costs of your case.2.

Your responsibilitiesYou must:-- give us instructions that allow us to do our work properly;-- not ask us to work in an improper or unreasonable way;-- not deliberately mislead us;-- co-operate with us when asked;-- go to any medical or expert examination or court hearing when asked;-- pay for disbursements as the case goes on, if the pay-as-you-go option is included in the agreement.3.

Explanation of words used(a) Accident line protect.

An insurance policy only made available to you by solicitors who have joined the accident line protect scheme.

If the agreement is covered by accident line protect, the agreement will say so.(b) Advocacy.

Appearing for you at court hearings.(c) Basic costs.

Our costs for legal work.

You pay them - and a success fee - if you win.Basic costs are worked out in line with the agreement.

But we will review the rates in the agreement on the review date and on each anniversary of the review date.

We will not increase the rates by more than the rise in the retail prices index.(d) Case.

Your claim for damages for personal injury.(e) Damages.

Money that a court says you or your opponent must pay (or money that you or your opponent agree to pay) in settlement of the case.(f) Our disbursements.

Payments we make on your behalf to others involved in the case.

These may be:-- court fees;-- experts' fees;-- accident report fees;-- official search fees;-- travelling expenses.Fees for barristers may also be counted as our disbursements (see condition 6).You have to pay all our disbursements, whether you win or lose.

There are two exceptions to this:-- if you win, we may be able to recover on your behalf the money for our disbursements from your opponent;-- if you lose, we are liable to pay the fees of any barrister who does not have a conditional fee agreement with us and whose fees you have not been paying on account.If you lose and accident line protect applies, the policy will pay our disbursements (excluding any fees to barristers or advocates) if proceedings began.(g) Interim damages.

Money that a court says your opponent must pay while waiting for a settlement or the court's final decision.

Out of this money we may require you to pay our remaining disbursements and a reasonable amount for our future disbursements.(h) Lien.

Our right to keep all papers, documents, money or other property held on your behalf until all money due to us is paid.

A lien may be applied after the agreement ends.(i) Lose.

The court has dismissed your proceedings or you have stopped them on our advice.(j) Opponent.

The party or parties from whom you are claiming damages in the case.(k) Success fee.

The percentage of basic costs that we add to your bill if you win the case.

It cannot be more than 100% of the basic costs.

It is paid out of your damages.The percentage reflects:-- our opinion of the level of risk we are taking - if you lose, we will not earn anything;-- the fact that we are not receiving our basic costs in advance;-- the fact that we may not be receiving our disbursements in advance.The total of our success fee and any barrister's uplift fee (see condition 6) is capped - it will not be more than 25% of damages recovered.

This calculation excludes any money your opponent pays to the DSS in repayment of any benefits you receive.(l) P ayment into court.

It may be that your opponent makes a payment into court which you reject and, on our advice, the case goes ahead to trial where you recover damages that are less than the payment-in.

If so, we will not add our success fee to the basic costs for the work done after we receive notice of the payment-in.(m) Win.

The case is finally decided in your favour, whether by a court decision or an agreement to pay you damages.

'Finally' means that your opponent:-- is not allowed to appeal against the court decision; or-- has not appealed in time.4.

What happens if you win?If you win, you are liable to pay our disbursements, basic costs and the success fee.

Normally, however, you will be able to recover part or all of our disbursements and basic costs from your opponent.

The court will decide how much you can recover if you and your opponent cannot agree the amount.

If the amount agreed or allowed by the court does not cover all our work, you pay the difference.

If your opponent is on legal aid we are unlikely to get any money from him or her; so, if this happens, you have to pay.You, not your opponent, pay our success fee.You agree that we may receive the damages and costs your opponent has to pay.

If your opponent refuses to accept our receipt, you will pay the cheque you receive from your opponent into a joint bank account in your name and ours.

Out of the money, you agree to let us take the balance of the basic costs; success fee; remaining disbursements; and VAT.

You take the rest.We are allowed to keep any interest your opponent pays on the costs.Payment for advocates is explained in condition 6.If your opponent fails to payIf your opponent does not pay any damages or costs owed to you, we have the right to take recovery action in your name to enforce a judgment, order or agreement.

The costs of this action become part of the basic costs.5.

What happens if you lose?If you lose, you do not have to pay any of the basic costs or success fee.

You do have to pay:-- us for our disbursements;-- your opponent's legal costs and disbursements;-- any damages awarded or agreed against you if your opponent succeeds in any claim against you.Payment for advocacy is dealt with in condition 6.If the agreement is covered by accident line protect, we will make a claim on your behalf and receive any resulting payment in your name.

We will give you a statement of account for all money received and paid out.If your opponent pays you the costs of any hearing, they belong to us.6.

Payment for advocacyThe cost of advocacy and any other work by us, or by any solicitor agent on our behalf, forms part of our basic costs.Barristers who have a conditional fee agreement with usIf you win, their fee is our disbursement which can be recovered from your opponent.

You must pay the barrister's uplift fee shown in the separate conditional fee agreement we make with the barrister.

We will discuss the barrister's uplift fee with you before we instruct him or her.

If you lose, you pay nothing.Barristers who do not have a conditional fee agreement with usIf you lose and you have not been paying the barrister's fees on account, we are liable to pay them.

Because of this, we add an extra success fee if you win.

This extra success fee is not added if you have been paying the barrister's fees on account.

If you win, you are liable to pay the barrister's fees.

See 'success fee' in the agreement.Other points concerning barristers-- If you choose a barrister we do not recommend, we may decide not to seek a conditional fee agreement with him or her.

The points in the previous paragraph will then apply.-- If we ask a barrister to provide advice or to draft documents, the fees will be treated as set out in this condition.-- If you reject our advice to use a barrister, you may not compel us to provide advocacy ourselves.

Following our refusal to provide advocacy, we can end the agreement if you still reject our advice to use a barrister.7.

What happens when the agreement ends before the case itself ends?Legal aidThe agreement automatically ends if you get a legal aid certificate.

Our basic costs up to that time, and a success fee, will only be payable to us if you win the case.

You must pay our disbursements whether you win or lose (but see 'accident line protect' below).If you ask another legal firm to act for you after you get legal aid, we may ask that firm to preserve our lien before handing over any documents on the case.Accident line protectAccident line protect ends automatically.

If the agreement has ended because you have got legal aid, any accident line protect cover remains in force as regards your opponent's costs and our disbursements incurred up to the date the agreement ends.Paying us if you end the agreementYou can end the agreement at any time.

We then have the right to decide whether you must:-- pay the basic costs and our disbursements when we ask for them; or-- pay the basic costs, our disbursements and success fee if you go on to win the case.Paying us if we end the agreement(a) We can end the agreement if you do not keep to your responsibilities in condition 2.

We then have the right to decide whether you must:-- pay the basic costs and our disbursements when we ask for them; or-- pay the basic costs, our disbursements and success fee if you go on to win the case.(b) We can end the agreement if we believe you are unlikely to win but you disagree with us.

If this happens, you will only have to pay our disbursements.(c) We can end the agreement if you reject our opinion about making a settlement with your opponent.

You must then:-- pay the basic costs and our disbursements;-- pay the success fee if you go on to win the case (unless your damages or settlement are at least 20% more than the offer we advised you to accept).If you ask us to get a second opinion from a specialist legal representative outside our firm, we will do so.

You pay the cost of a second opinion.8.

What happens after the agreement ends?After the agreement ends, we will apply to have our name removed from the record of any court proceedings in which we are acting unless you have legal aid and ask us to work for you.We have the right to preserve our lien unless another solicitor working for you undertakes to pay us what we are owed including a success fee if you win.@ Law Society, June 1995.