Brazil Lawsuit on Contingency Basis

Can I Pay a Lawyer in Brazil Only Based on Results?

lawsuit in brazil on a contingency basis

A common question prospective clients ask is whether they can hire a Brazilian lawyer on a contingency basis, paying solely if they win their case. While this arrangement is available in certain jurisdictions abroad, the reality in Brazil is quite different. Pure result-based agreements are rare, often unadvised, and in some scenarios forbidden by local bar associations. If you are considering legal representation for lawsuits and disputes in Brazil, here are a few points to bear in mind.

Why Pure Contingency Fees Are Uncommon

Lawsuits in Brazil tend to take much longer than in some other countries, such as the United States. The unpredictable nature of judicial proceedings, combined with possible appeals and delays, can mean a single case could remain active for several years before a final judgment is issued. As a result, attorneys are often reluctant to work purely on a success-fee basis. If they do, they typically only do so for exceptionally high-value disputes, where the final payout might justify the long-term investment of time and resources.

Another factor is the reliability of legal outcomes. Because court systems in Brazil can vary in their speed and rulings across different states, a lawyer taking on a pure contingency case assumes substantial risk. Even when an attorney believes in the merits of your claim, the extended duration and complex nature of local court procedures can make a simple result-based fee arrangement unsustainable.

Case Costs Still Need to Be Paid

No matter which fee setup you negotiate, certain expenses inevitably fall on the client. These costs typically include court filing fees, which are calculated as a percentage of the amount being claimed. Clients are also responsible for any fees owed to the opposing counsel if they lose—commonly referred to as “honorários de sucumbência”—which can reach up to 20% of the total claim amount.

For instance, if you lose a claim valued at USD 100,000, the judge may require you to compensate the winning party’s attorney. On top of that, you also need to pay for the legalization and sworn translation of foreign documents, if applicable. Hence, even if you were to convince a lawyer to work on a pure contingency basis, you would still need to budget for these direct expenses.

Types of Cases That May (or May Not) Fit

In some scenarios—such as large probate disputes, where a significant inheritance is at stake—a partially result-based fee might be an option. If there is a substantial estate, attorneys can sometimes justify waiting until the probate is settled to collect a larger percentage of the final distribution. By contrast, if you need defense in a lawsuit or a criminal proceeding, it becomes unclear how to calculate a percentage when there may be no monetary “prize” at the end. Additionally, many state bar associations in Brazil either prohibit pure contingency fees or impose specific rules about minimum fixed fees and maximum percentages, aiming to prevent unethical practices and conflicts of interest.

A More Common Hybrid Arrangement

Given these constraints, many Brazilian lawyers prefer a mixed fee setup. This could involve a modest retainer paid at the outset, with a larger performance-based amount to be collected only if you win or reach a favorable settlement. For protracted disputes that drag on for multiple years, some attorneys may also suggest a small annual fee to cover ongoing administrative tasks and court appearances. This hybrid approach ensures the lawyer remains dedicated to your case while also respecting local ethical guidelines and balancing financial risks for both sides.

By understanding these nuances, you can avoid unrealistic expectations and make informed decisions about how to structure legal representation in Brazil. Above all, remember that even if a contingency fee seems attractive at first glance, you will still be responsible for ancillary costs like filing fees, potential adverse attorney fees, and document legalization.