Table of Contents
Sources checked: August 31, 2026. This page provides general information, not legal, medical, or insurance advice.
Start with the written agreement, not a percentage you heard
A percentage can be one part of a fee agreement, but it is not the whole agreement. The State Bar of New Mexico’s ethics materials describe Rule 16-105 requirements for contingent fees. The agreement must be written and signed by the client, and it must identify the method used to determine the fee. It also has to address litigation and other expenses and how those expenses are treated in a recovery.
A responsible discussion about cost should point you to the actual section of the agreement. Ask for a complete copy, read it before signing, and keep the version you sign. Do not rely on a phrase in advertising, a social-media comment, or an example that was not written for your own matter.
Fee, expense, and recovery are different terms
A legal fee is the payment for legal services under the agreement. Expenses can be a separate category. They may include filing, records, copies, experts, or other work connected to a matter, depending on the agreement and the facts. A recovery is another category. The rules require the agreement to explain whether expenses are deducted before or after a contingent fee is calculated and to identify expenses for which the client may be liable.
- Where does the agreement define the fee and the method used to calculate it?
- Which expenses are named, and where does the agreement explain how they are treated?
- Does the agreement explain the order of any fee and expense calculation if there is a recovery?
- What scope of representation does the agreement describe, and what change would require a new conversation?
There is no useful substitute for reading the wording in context. An answer that skips the written terms may sound simple but does not tell you how a particular agreement applies.
Advertising should not create a false sense of certainty
The New Mexico Supreme Court’s professional-communications rule warns that a statement about a contingent fee can be misleading if it omits a client’s responsibilities for costs when those responsibilities may exist. It also warns against communications that lead a reasonable person to expect the same result in another matter without reference to the individual facts and legal circumstances.
That is a practical reason to separate a fee question from an outcome question. An agreement can explain the cost structure. It cannot make a future result certain. If someone gives you an example, ask what is written in your agreement and which parts of the example are not a promise about your situation.
Bring questions to the first meeting
You do not need to understand every legal term before a meeting. You do need to know what is unclear. Write down the sections that mention fees, expenses, termination, scope, communications, and a final accounting. Ask for plain language about each one, then compare the explanation to the agreement you are asked to sign.
- May I have a complete written copy before I decide?
- What does the agreement say about costs if there is no recovery?
- How will I receive a written accounting at the end of the matter?
- What should I do if I have a question later about the scope or a cost described in the agreement?
The value of these questions is not that they predict a case. They help make a representation decision based on documented terms rather than assumptions.
Keep your copy and any changes together
After signing, store the complete agreement, any later addenda, and communications about fees or costs in one folder. If terms change, ask for written confirmation. Having the actual documents together is more useful than comparing a later memory of a conversation with an earlier version of the agreement.
This page is general information and does not describe a particular agreement with El Gringo Law. A private review can help you identify questions about a proposed agreement without promising any particular legal result.
Need to understand a proposed fee agreement before deciding?
A private conversation can help you identify the questions to resolve about fees, costs, and the scope of representation.
Frequently asked questions
Does a contingent-fee percentage tell me the whole cost?
No. Review the complete written agreement for how the fee is calculated, how expenses are treated, and what responsibilities are described.
What must a New Mexico contingent-fee agreement explain?
It must be written and signed, identify how the fee is determined, address deducted expenses and timing, and clearly notify the client of expenses for which the client may be liable.
Should I sign a fee agreement before I have read it?
Read the complete agreement, ask about any unclear term, and retain a copy of the version you sign.
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