What determines your Legal Fee?
- Does the attorney charge a FLATE FEE?
- One dollar amount is paid for a typical legal case.
- Flat fees are usually charged when the services being provided are more predictable.
- Ask the lawyer exactly what services and expenses are and are not covered in a flat fee.
- Does the attorney charge an HOURLY FEE?
- Most legal fees are charged by this method.
- The more experienced an attorney, the higher the hourly rate.
- Cheaper might be better, but a more expensive and experienced lawyer could very well handle your case faster and better.
- The more complex the facts of your case, then you should expect higher fees.
- Ask the attorney how many hours it will take to complete your case.
- Does the attorney charge a RETAINER FEE?
- This fee is based on an hourly rate.
- Clients put money into a special account called an escrow account.
- Attorney deducts fees as services are completed.
- Once retainer is used and more work needs to be done, client must pay another fee.
- The attorney should give the client an idea of how much longer case will take.
- The client should be aware that the retainer fee is generally refundable if not used by the lawyer.
- Is there a STATUTORY FEE?
- A statutory fee is a fee set by law.
- Some legal work requires the court to set or approve the fee.
- Is there a CONTIGENCY FEE?
- A contingent fee means the lawyer charges no fee .
- But instead earns a percentage of the settlement or judgment, if any is awarded.
- Contingent fees — typically one-third of the settlement or judgment — can be negotiated.
- In some legal cases, contingent fees are not allowed.
- Another subset of Legal fees:
An attorney can consider how much or how little to charge an hourly fee, flat fee or retainer fee based upon some other client factors.
- Low Bono:
- Sliding scale based on client’s income
- Must qualify
- Must provide proof of income
- Most private attorneys do not accept these types of clients
- However, some accept these clients as community service
- State Bar requirement in some states
- Non-profit organizations usually accept these types of clients
- Pro Bono:
- Free/no legal fees are paid
- May have to pay a one time nominal administrative fee
- Must qualify
- Must provide proof of income
- Most private attorneys accept a hand full of these type of cases
- State Bar requirement in some states
- Community service
- Non-profit organizations usually accept these type of clients
- Market Rate:
- Most attorneys prefer this rate in order to pay their bills
- Rate set by Laffey Matrix
- Based on how many years out of law school
- Available since 1982
- Provided by United States Attorney’s Office for the District of Columbia
- Rate set by American Bar Association
- Based on how many years practicing law
- Other rates
- Cost of living for current area
- What are other attorneys charging for same service/same area
- Based on area of practice
- Based on years of experience in a particular area of law
- Consider Office overhead? What is overhead?
- State Bar Fees
- Professional Bar Fees
- Office Rent
- Is attorney sharing an office?
- Is attorney sharing staff?
- Office Administration (computer, printer, fax, telephone, cell phone, etc)
- Office Staff
- Sole practitioner
- Small Firm
- Large Firm
- Salaries
- Leave
- Taxes
- Personnel
- Income
- Business
- Insurance
- Travel fees
- Court fees
