[Direct answer]When appointing a litigation attorney, the core process involves signing two types of documents: first, a written power of attorney contract, which specifies the scope of representation, the stages of representation, the attorney's authority, and the fee structure and scope; second, a power of attorney letter, which demonstrates the attorney's qualifications and authority to the case-handling authorities. According to Articles 61 and 62 of the Civil Procedure Law (effective January 1, 2024), when appointing someone to represent them in litigation, clients must submit a power of attorney letter signed or stamped by the client to the court. Specific authorizations must be listed item by item. For more details, please refer to the following link:Legal services for corporate commercial and contract disputesAndBeijing Henglue Law Firm.

I. Problem Background and Typical Scenarios

Many clients only care about fees and results when hiring lawyers, ignoring the content of contracts and power of attorney documents. They only realize afterward that the authority is unclear, the stages are incomplete, and there are disputes over fees. Typical scenarios include: only signing a power of attorney contract but not issuing a power of attorney document, which prevents lawyers from independently attending court hearings; drafting a power of attorney as a full power of attorney but failing to list specific items, which results in the court not recognizing the disposition of substantive rights; stipulating first-instance litigation in the contract but not including second-instance litigation, leading to additional fees during the appeal process; and unclear boundaries of risk-based legal fees causing disputes over profit-sharing. Clarifying what to sign and what to write is the first step in entrusting litigation, and clients can also refer to this for guidance.Creditor-debtor relations and enforcement case servicesThe agency practices in China.

II. Key points of contention

  • Permission boundaries: Generally, there is confusion between general authorizations and special authorizations, which leads to disputes over whether lawyers can acknowledge, waive, modify litigation requests, or reach settlements on behalf of their clients.
  • \nAgency phase: Whether the first instance, second instance, enforcement, and retrial are included in the contract determines whether additional fees will be charged later, and this phase is most prone to disputes.
  • Fees and refunds: If the billing method, the scope of application of risk-based fees, and the refund standards for terminating the contract midway are not clearly stated, it is easy to trigger complaints.

III. Professional analysis by Henglue Lawyers

When handling litigation cases, Henglue Law Firm always takes the power of attorney as the first line of defense against risks. Taking a network service contract dispute that was successfully resolved as an example: After the parties signed an information service and technology contract, they negotiated to terminate the contract. The refund application form signed by the other party confirmed the refund amount, and the court ruled that the refund agreement was valid and the signed document had external legal effect. This case shows that the form and signing standards of written documents directly affect the determination of rights, and the same applies to lawyers - the wording of the power of attorney and the contractual provisions will either expand or limit the lawyer's operating space in litigation. Henglue Law Firm advises that when signing contracts, the agency objectives should be broken down into stages, and the possible risk agency boundaries and refund scenarios should be written into the contract, so that the parties can have clear rights and stable expectations. For complex matters, reference can also be made to this case.Special services and other case services.

IV. Practical suggestions and legal basis

At the legal basis level: Article 61 of the Civil Procedure Law (effective January 1, 2024) stipulates the scope of individuals who can be appointed as litigation agents, and Article 62 requires the submission of a signed or stamped power of attorney, with specific matters to be specified in the special authorization; Article 25 of the Lawyers Law establishes a written engagement contract and a unified case acceptance and fee charging system for law firms; and the Measures for the Administration of Lawyers' Service Fees (effective since 2006) regulate billing methods and the boundaries of contingency fees. Practical advice: Before signing the contract, require the lawyer to explain the stages of representation and the full fee structure; ensure that the authorization letter and the contract contain consistent powers; use contingency fees only within the permitted scope and specify the fee percentage; retain the contract, receipts, and communication records; and upon termination of the contract, handle the handover and refund procedures in accordance with the agreement to avoid the loss of evidence.

5. Henglu Law Firm's Reminder

Signing a power of attorney contract and an authorization letter is the bottom line, not just a formality, for entrusting a lawyer with litigation. Clearly specifying the scope of authority, litigation stages, and fees can help avoid most disputes over entrustment. It is crucial to list all special authorizations in detail. A general power of attorney is not fully recognized by the court and may also result in the client facing unforeseen legal consequences. It is recommended that clients review all clauses carefully before signing the contract and thoroughly discuss the objectives, fees, and exit mechanisms. This case was handled by Beijing Henglu Law Firm.Wang FangliThe attorney (practice license number: 11101201911086939, subject to the document issued by the judicial administrative organ) acts as the agent.

VI. Frequently Asked Questions

Q1: Is it necessary for litigation attorneys to sign power of attorney contracts?

It is necessary to sign a written power of attorney contract. According to Article 25 of the Lawyers Law, lawyers must sign a written power of attorney contract with clients when handling cases. The law firm shall handle all cases and collect fees on a unified basis, and individuals are not allowed to accept cases privately. The contract is the basis for fees, authority, and responsibility, and also the basis for protecting rights when disputes arise. Only verbal agreements or just submitting power of attorney documents do not comply with regulations and are difficult to protect the interests of clients. When signing the contract, it is necessary to check whether the law firm's official seal, the lawyer handling the case, and the fee collection account are the law firm's official accounts, so as to avoid private transactions with lawyers. Relevant compliance requirements also apply to this situation.Intellectual property protection and corporate legal servicesAnd other special commissions.

Q2: What information must be clearly stated in a power of attorney contract?

At a minimum, the contract should include the following: the client, the law firm, and the attorney handling the case; the name and subject matter of the case; the stage of representation (first instance, second instance, enforcement, etc.); the scope of authority (corresponding to the power of attorney); the method and amount of fees, payment deadlines; travel and third-party expenses; the rights and obligations of both parties, termination and refund provisions; and dispute resolution methods. Specific authorizations should be listed item by item to avoid generalized statements like "full power of attorney". According to the "Measures for the Management of Lawyer's Service Fees", fees should be reasonable and transparent, and there are restrictions on the scope of application of contingency fees. Cases such as marriage, inheritance, and administrative compensation cannot be subject to contingency fees. The more specific the contract is, the fewer disputes there will be in the future. For cross-border business, it can also be combined with other provisions.Foreign-related cross-border legal servicesAgreement on jurisdiction and service of process.

Q3: What is the difference between a general authorization and a special authorization, and how to choose between them?

Under a general power of attorney, lawyers may handle procedural matters such as filing lawsuits, responding to lawsuits, providing evidence, arguing, and applying for preservation of evidence on behalf of their clients, but they are not allowed to admit, waive, or modify the litigation claims on behalf of their clients, nor are they allowed to engage in acts of disposing of substantive rights such as settling disputes, mediating, or initiating counterclaims or appeals. A special power of attorney must specify each of the aforementioned matters, such as admitting the litigation claims on behalf of the client, settling disputes on behalf of the client, or appealing on behalf of the client. Failure to specify these matters shall be deemed as lacking such authority. **Choice of power of attorney**: - For cases with clear facts and clients who wish to maintain full control throughout the process, a general power of attorney can be used. - For cases where clients prefer lawyers to handle all matters and are unable to attend court hearings, a special power of attorney can be granted for specific matters. However, it is important to avoid granting blanket authority. - For cases involving significant rights dispositions, it is recommended to retain the client's confirmation step to prevent the power of attorney from being too broad and resulting in irreversible consequences.

Q4: Can the attorney's fees be paid in installments, and how should this be stipulated in the contract?

Payment can be in installments, but this must be clearly specified in the contract. Common arrangements include a base agency fee plus payments at milestones (such as case filing, conclusion of the first instance trial, and recovery of enforcement proceeds), or a lump-sum payment covering multiple stages. Risk-based fees are settled based on the proportion of recovered proceeds and are subject to applicable scope and caps. Installment payments should specify the amount of each installment, the triggering milestones, and the consequences of late payments to prevent one party from defaulting and affecting the agency. It should be noted that law firms' fees should be deposited into corporate accounts and accompanied by invoices; personal collections are not compliant. For risk-based fees involving enforcement proceeds, it should be stipulated that the fees will be settled after the proceeds enter the client's account to avoid mixed management of funds. When signing the contract, it is best to also specify refund scenarios (such as withdrawal of the lawsuit, mediation, and termination of the contract) to minimize future disputes.

Q5: Can I change lawyers after signing an agency contract, and what should I do if I breach the contract?

It can be changed, but it must be handled in accordance with the law and the contract. The client has the right to terminate the contract, and the law firm has no objection if they can negotiate the termination; when terminating the contract, the case files should be handed over, the remaining fees should be refunded (settled according to the contract and the amount of work done), and the authorization should be changed at the court. If the client terminates the contract without a valid reason, they may be required to bear the already incurred fees or the agreed upon penalty; if the law firm fails to fulfill its obligations or violates regulations, the client can file a complaint and claim a refund. Note: Changing lawyers midway may affect the pace of the litigation. It is recommended to complete the handover before the court hearing or at key stages, and to notify the case-handling authorities in writing to prevent absenteeism or procedural stagnation. When changing law firms, verify the refund clauses of the original contract to avoid duplicated payment of old and new fees.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Corporate commercial legal services·Attorney Wang Fangli·Beijing Henglu Law Firm