Types of Legal Fees

  Types of Legal Fees

    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.Legal fees depend

on several factors, including the amount of time spent on your problem; the

lawyer\'s ability, experience, and reputation; the novelty and difficulty of the

case; the results obtained; and costs involved. There will be other factors such

as the lawyer\'s overhead expenses (rent, utilities, office equipment, computers,

etc.) that may effect the fee charged.

There are several common types of fee arrangements used by lawyers:

  Consultation Fee: The lawyer may charge a fixed or hourly fee for your first

  meeting where you both determine whether the lawyer can assist you. Be sure to

  check whether you will be charged for this initial meeting.

  Contingency Fees: The lawyer\'s fee is based on a percentage of the amount

  awarded in the case. If you lose the case, the lawyer does not get a fee, but

  you will still have to pay expenses. Contingency fee percentages vary . A

  one-third fee is common. Some lawyers offer a sliding scale based on how far

  along the case has progressed before it is settled. Courts may set a limit on

  the amount of a contingency fee a lawyer can receive. This type of fee

  arrangement may be charged in personal injury cases, property damage cases, or

  other cases where a large amount of money is involved. Lawyers may also be

  prohibited from making contingency fee arrangements in certain kinds of cases

  such as criminal and child custody matters. Contingency fee arrangements are

  typically not available for divorce matters, if you are being sued, or if you

  are seeking general legal advice such as the purchase or sale of a business.

  Flat Fees: A lawyer charges a specific, total fee. A flat fee is usually

  offered only if your case is relatively simple or routine such as a will or an

  uncontested divorce.

  Hourly Rate: The lawyer will charge you for each hour (or portion of an hour)

  that the lawyer works on your case. Thus, for example, if the lawyer\'s fee is

  $100 per hour and the lawyer works 5 hours, the fee will be $500. This is the

  most typical fee arrangement. Some lawyers charge different fees for different

  types of work (legal research versus a court appearance). In addition, lawyers

  working in large firms typically have different fee scales with more senior

  members charging higher fees than young associates or paralegals.

  Referral Fee: A lawyer who refers you to another lawyer may ask for a portion

  of the total fee you pay for the case. Referral fees may be prohibited under

  applicable state codes of professional responsibility unless certain criteria

  are met. Just like other fees, the total fee must be reasonable and you must

  agree to the arrangement. Your state or local bar association may have

  additional information about the appropriateness of a referral fee.

  Retainer Fees : The lawyer is paid a set fee, perhaps based on the lawyer\'s

  hourly rate. You can think of a retainer as a \"down payment\" against which

  future costs are billed. The retainer is usually placed in a special account

  and the cost of services is deducted from that account as they accrue. Many

  retainer fees are non-refundable unless the fee is deemed unreasonable by a

  court. A retainer fee can also mean that the lawyer is \"on call\" to handle

  your legal problems over a period of time.Since this type of fee arrangement

  can mean several different things, be sure to have the lawyer explain the

  retainer fee arrangement in detail.

  Statutory Fee: The fees in some cases may be set by statute or a court may set

  and approve a fee that you pay. These types of fees may appear in probate,

  bankruptcy, or other proceedings. Types of Legal Fees - Learn About the LawSet LocationClose

With all types of fee arrangements you should ask what costs and other expenses

are covered in the fee. Does the fee include the lawyer\'s overhead and costs or

are those charged separately? How will the costs for staff, such as secretaries,

messengers, or paralegals be charged. In contingency fee arrangements, make sure

to find out whether the lawyer calculates the fee before or after expenses. Prev