All accounts accepted by HMH Legal (Law Firm or HMH) are subject to the following:
TERMS & CONDITIONS
1) It is agreed that HMH will charge and may retain or deduct the following commission fees on all accounts resolved whether settled direct to the Law Firm or through your office, in accordance with the following rates.
These services and charges apply to commercial accounts only. Non-commercial
accounts are accepted only at the option of HMH, and are subject to increased
I. CONTRACTUAL COMPENSATION
1.1 Commissions will be contingent on the recovery of money or property. Commission rates for any and all accounts forward shall be the ones pointed out in the table below:
1.2 When a claim is collected in installments, the contractual commission rate shall apply to the aggregate of the installments collected and not to each installment individually.
1.3 In situations where Law Firm may obtain amicable agreement for the debtor to make payments over an extended period of time, Law Firm can give Client the option to (a) pay a higher contingency fee without suit or (b) litigate, giving requirements for suit fees and court costs.
1.4 When a claim is paid by the debtor directly to Client after it has arrived at the office of Law Firm:
1.5 Law Firm will be entitled to full compensation in each of the following situations:
1.6 Law Firm will not be entitled to commission in any of the following situations:
A. Interests, Costs, Attorneys Fees
2.1 Interest collected on an account or judgment is the property of Client, and the collection of interest must be disclosed by Law Firm to Client. Interest collected should be added to the principal collected for the purpose of computing the commission.
2.2 Court costs expended in connection with litigation and subsequently recovered from the debtor may not be added to the principal in computing the commission, and Client is entitled to a full return of the money advanced by him for costs when such money is collected from the debtor as part of the judgment.
2.3 Where a plaintiff is awarded a sum in addition to his damages and costs (variously known as statutory costs, taxed fees, taxed cost, or the like), said additional sum shall be deemed to be the property of the Client and shall be treated, for purposes of computing commissions, the same as interest, unless prohibited by law. If so prohibited, Law Firm shall retain the amount so awarded and collected as his own, by way of his suit fee or on account of his suit fee, and shall compute his commission upon the collection of principal and interest only, so that Law Firm will not be paid twice for his court services, once by the statutory recovery and once by Client.
2.4 Unless otherwise agreed upon by and between Client and Law Firm, because an attorneys fee clause in a contract or note is intended to reimburse the holder for expenses incurred in the collection thereof, any such attorneys fee collected in addition to principal and interest, where no suit has been filed, shall be deemed to be the property of Client and shall be treated for purposes of computing commissions, the same as interest, unless prohibited by law. If so prohibited, Law Firm shall retain the same as his own, and shall compute his commission upon the collection of principal and interest only, and shall deduct the amount so retained from the commission computed in accordance with the commission contract.
2.5 Sums awarded by a court or arbitrator for contempt for failure to appear; failure to proceed; failure to comply with an order of the court; false or frivolous pleadings; or the like; and intended to compensate the receiving attorney, shall be applied to cover costs incurred throughout litigation and shall only belong to Law Firm after all costs incurred by Client have been covered.
2.6 In all instances of recovery pursuant to Sections 2.3 and 2.4 herein above, it shall be the obligation of Law Firm to disclose said recovery to Client and to inform Client of the specific local law which prohibits said recovery from being deemed the property of the creditor.
C. Suits and Suit Fees
3.1 The mere forwarding of a claim for collection does not warrant the commencement of suit, nor does the mere employment of Law Firm to collect a claim imply any authority to sue. No suit shall be commenced by Law Firm unless they shall have authority from Client to do so.
3.2 Suit fees will be charge as a contingency fee upon recovery at an additional commission rate of 10% of net recovery, unless otherwise agreed and authorized in writing by Law Firm. The percentage shall be computed on the gross amount collected by Law Firm, not including the court costs expended and recovered from the defendant.
II. NON-CONTRACTUAL COMPENSATION
4.1 In addition to the commissions agreed upon between Client and Law Firm, Law Firm shall be entitled to reasonable compensation in the following situations:
Law Firm shall promptly advise Client as to the necessity for additional compensation.
B. Reasonable Compensation as a Substitute for Contractual Compensation
5.1 Law Firm shall be reasonably compensated for the work and services actually performed, and where appropriate, for the expenses incurred, under the following situations:
5.2 Because the placement of a claim with Law Firm on a contingent basis vests Law Firm with an interest in the claim to the extent of his contingent commission, the withdrawal of a claim for any reason (including a desire to file the claim direct in any probate, bankruptcy, receivership, insolvency or other kindred proceedings), shall entitle Law Firm to reasonable compensation for services rendered.
5.3 When any neglect or failure to act on the part of Client, including but not limited to the failure to give timely notice of payments received from settlements made with a debtor, which neglect or failure results in Law Firm being compelled to do work which otherwise could have been avoided and for which he will not be otherwise compensated, Law Firm is entitled to reasonable compensation for services rendered.
5.4 Where suit is authorized and all requisite papers have been prepared, and Client fails to cooperate with Law Firm, Law Firm will be entitled to reasonable compensation for his services.
5.5 Where suit is authorized and commenced, and Client fails to furnish Law Firm with the evidence or testimony to substantiate the claim, or to comply with orders of the court, which failure results in the dismissal of the case or in a judgment adverse to the creditor, Law Firm will be entitled to reasonable compensation for his services.
5.6 Where Client employs two or more receivers in the same or different towns to handle the same matter, and fails to inform each of them of the dual representation, and where either of them collects the claim in whole or in part, the other is entitled to reasonable compensation for his services.
5.7 To determine the reasonable compensation to be paid to Law Firm —should it be entitled under this Section, an hourly fee schedule of $70.00 (seventy 00/100 US dollars) will be considered per hour of legal work involved. For this purpose, Law Firm will provide Client with a detail statement of all services provided, with exact dates for each service rendered.
PART III. COURT COSTS AND EXPENSES
6.1 Money advanced for court costs is a fund to be drawn upon for the purpose of paying court costs, and should be accounted for at the conclusion of Law Firm’s employment.
6.2 Except in cases of emergency, where the interests of the creditor might be prejudiced by delay, it shall be the duty of Law Firm to consult Client before incurring any items of expense.
6.3 Money expended in service of process or endeavoring to serve process on defendants where suit is authorized is a legitimate expense that the creditor must pay.
7.1 Law Firm shall acknowledge receipt of a claim promptly unless received at execution of this contract.
7.2 Law Firm shall report the fact that a claim is being collected in installments, and shall remit within a week any money so collected.
7.3 Law Firm shall promptly return all papers and/or remit all moneys collected and unexpended costs, on claims that have been withdrawn because of Law Firm’s neglect or inability to handle the same.
7.4 Where Law Firm is called upon to remit the proceeds of a collection to different and conflicting parties, he shall impound the money with some responsible depository, and shall then notify the conflicting parties that it will not be released until he is assured by both parties, by stipulation or otherwise, that the dispute has been completely adjusted.
7.5 Law firm shall account for and remit on:
7.6 On all claims in litigation, Law Firm shall
7.7 Law Firm Will be obligated to transfer or travel to Client’s domicile at Client’s request, at least once a month, to discuss any issues or status of claims or litigation, or for any other reason that Clients deems so necessary.
7.8 Law Firm will provide Client with reports for all accounts and claims pertaining to their progress and status at least once a month. Law Firm will also provide monthly statements for all accounts that have been placed for suit, and they shall reflect all costs and expenses incurred by Law Firm on Client behalf during the particular month.
B. Of Client
8.1 Client will pay for all costs and travel expenses in which Law Firm incurs, every time Law Firm is requested by Client and transfers or travels to Client’s domicile to discuss any issue or status of claims or litigation, or for any other reason that Clients deems so necessary.
8.2 Client shall provide to Law Firm a general power of attorney for lawsuits and collections to be exercised in Mexico for all accounts that are forwarded by this contract.
8.3 In an effort to minimize Law Firm requests for information and documentation, every claim forwarded to Law Firm should be accompanied by the following where available:
9.1 Law Firm shall not retain an item of business if he cannot handle it properly for any reason; except that, if the reason is an apparent conflict of interest, Law Firm shall place Client in full possession of all the facts or shall return the claim at once.
9.2 Law Firm, having taken property or money from a debtor as settlement of a claim, in a controversy arising with Client regarding his compensation, will never return the property or money to the debtor. Once the property or money is taken and received as payment of the claim, the property or money is in the constructive possession of the creditor and may not be returned without his authority.
9.3 Law Firm shall not charge and retain in one case the fees or costs claimed in another, where there is no authority to do so.
9.4 Law firm shall not incur any item of expense, chargeable to the creditor, without Client’s consent, except in cases of emergency where the interests of Client are likely to be prejudiced by delay.
9.5 Law Firm may not institute a suit or compromise a claim without authority of Client.
B. Upon Client
10.1 Client shall not withdraw a claim from Law Firm in the absence of fault on the part of the receiver, without compensating the receiver in accordance with section 5.2.
PART VI. JURISDICTION
11.1 All disputes, controversies or claims arising out of or in connection with or in relation to the contract, including any question regarding the existence of the contract, its validity or termination, may be submitted to and be subject to the jurisdiction of the courts of Tijuana, Baja California, México, which shall have exclusive jurisdiction in the event of any dispute hereunder. The parties hereby irrevocably submit and attorn to the exclusive jurisdiction of such courts to finally adjudicate or determine any suit, action or proceeding arising out of or in connection with this agreement.
Ave. Los Angeles 453,
Tijuana B.C., México 22106
Tel.: +52 (664) 685-1387
Fax: +52 (664) 685-9196