Most Common Fee Arrangements

Fees are one of the least discussed parts of any legal case yet are often of primary
importance to both the client and the lawyer. Frequently fees are not discussed early
enough, candidly enough, or in enough detail. Why?  Generally, because the discussion
can be uncomfortable for both the client and the attorney. Becoming knowledgeable about
the types of fee arrangements can help you to feel more comfortable about this essential
part of hiring an attorney.  

Fair Fee:    A "fair" fee is an individual decision and is likely to be based on the following factors:
                       (1) How much can you afford?
                       (2) Is it a routine matter or does it require special expertise?
                       (3) What is the range of attorney rates for this type of case in your area?
                       (4) How much work can you do on the case?

The type of fee arrangement that you make with your lawyer will have a significant impact on how much you will pay for the services. There are several common types of fee arrangements used by lawyers:

Flat Fee:  The lawyer will charge you a specific total fee for your case. Ask if photocopying, typing, and other out-of-pocket expenses are covered by this flat fee. Often the total bill is the flat fee plus these out-of-pocket expenses. A flat fee is usually offered only if your case is relatively simple or routine. While lawyers will not set a flat fee for litigation, they can usually
give a good estimate of the costs at each stage.

Hourly Rate:  An attorney will charge you for each hour (or portion of an hour) that he or she works on your case. If your attorney's fee is $100 per hour, and he or she works ten
hours, the cost will be $1,000. Some attorneys charge a higher rate for court work and less per hour for research or case preparation. If you agree to an hourly rate, you need to know how much experience your attorney has had with your type of case. A less experienced attorney will usually require more time to research your case, however, he or she may charge a lower hourly rate. Large law firms usually charge more than small law firms and urban attorneys often charge more per hour than attorneys practicing in rural areas. You should ask what is included in the hourly rate. If other staff such as secretaries, messengers, paralegals, and law clerks will be working on your case, how will their time be charged to you? Costs and out- of-pocket expenses will usually be billed in addition to the hourly rate.
Contingency fee:Under this arrangement, the attorney's fee is based on a percentage of what you are awarded in the case. If you lose the case, the attorney does not get a fee, although you will still have to pay expenses. The contingency fee percentage varies and some lawyers offer
a sliding scale based on how far along the case is when it is settled. A one-third fee is common.  Also, ask whether the lawyer will calculate the fee before or after the expenses. This can make a substantial difference, since calculating the percentage of the attorney's fee after the expenses have been deducted increases the amount of money you receive. This type of fee is usually found in personal injury cases, accidental claims, property damage cases, or other cases where a large amount of money is in contention.

Referral Fee:  On occasion, an attorney who has accepted your case may refer you to another attorney who is more experienced. Sometimes the first attorney will ask for a portion
of the total fee you pay for the case. This "referral fee" may be prohibited under state codes of professional responsibility unless certain criteria are met. The criteria are likely to include the stipulation that client fees can only be split if each attorney does some work, the client knows about the arrangement, and the total fee is reasonable.  You may contact the state bar association with questions about the appropriateness of fee arrangements.

Again, regardless of the fee structure you and your attorney agree upon, the specifics of the agreement should be in writing.

Let TRUSTED REFERRALS help you 
to choose the right attorney. 

Call the number below or contact us electronically
so we can review your case and pair you
with a qualified attorney in your area today.

770-904-5032

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