Legal Fees, How do we charge?
Generally, there are three different ways that attorneys charge fees:
first, on a contingency basis; second, on an hourly basis; and, third,
on a fixed fee basis. When you hire an attorney, that attorney is
providing you his or her expertise and advice, please expect to be
charged for the time that an attorney expends on your behalf because
this is how the attorney gives you the benefit of their counsel and
experience.
Contingency Fees
Contingency fees are generally limited to personal injury types of
cases or other matters of entitlement such as civil rights matters. In
these types of cases, there is some expectation that you will receive
some financial award either by settlement or by judgment from a court
or jury. However, in most cases, your financial award does not include
your attorney's fees. You are responsible for paying your attorney's
fees out of any financial recovery that you obtain.
In contingency fee cases, the attorney assesses whether or not he
believes that you have reasonable chance of succeeding. If the attorney
feels that you do have a reasonable chance, the attorney may take your
case by investing his time without a fixed payment from you up front.
Basically the attorney is counting on being paid from a percentage of
any award which you receive from a settlement or from a court. In most
personal injury cases, there is not a limit on what the attorney can
charge. However, generally speaking, a one-third contingency fee is the
customarily accepted percentage that a lawyer will be paid if the case
settles before a lawsuit is filed. If a lawsuit is filed, the fee may
be higher. If your case is lost, the lawyer is paid nothing for his
time. However, any expenses such as depositions, filing fees, court
reporter fees, and witness fees remain your responsibility to pay.
Although the attorney may advance some of those costs to you if you
cannot afford them, you remain responsible to reimburse your attorney
for those costs whether you win or lose.
Fixed Fees
Attorneys charge a fixed fee for standard routine matters such as
traffic offenses, or minor criminal matters. These are some but not all
of the examples of tasks for which an attorney may charge you a fixed
fee.
Hourly Fees
Attorneys charge an hourly rate for almost everything else other than
personal injury cases and standard routine matters. The amount the
attorney charges per hour will be determined by a number of factors.
The most important factor is his or her experience in the type of
matter for which you are being represented. Another factor will be the
generally accepted charges for similar matters in your legal community.
In most hourly cases, your attorney will request that you pay a
retainer fee up front against which the attorney will bill his or her
time. When your attorney is charging you an hourly rate, the firm will
periodically provide you with an itemized statement of the time which
he has expended on your behalf.
Whenever you believe that you need an attorney, you should discuss
attorney's fees during your first conference with the attorney. You
must clearly understand the way in which the attorney intends to bill
you for handling your legal matter. You should expect to sign an
agreement with the attorney regarding fees so that both you and your
attorney have a clear understanding of what to expect. In some cases, a
contract of representation between you and your attorney is not
required.
You should never be afraid to discuss attorney's fees or to negotiate
attorney's fees with the attorney at the beginning of your
representation. Having a clear understanding between you and your
attorney on the issue of fees will assure a good working relationship
between you and your attorney.
WHAT ABOUT THE
COMPETITION - EVER HEAR OF “HALF PRICED LAWYERS?”