Knowing and Understanding Attorneys Fees and Costs
Frequently fees are not discussed early enough, candidly enough, or in enough detail even though fees are an important part of the attorney-client relationship. Often, attorneys spend the least amount of time with their clients discussing fees. Why? Generally, because the discussion can be uncomfortable for both the client and the attorney.
What are attorneys fees?
Simply, attorneys fees is the money paid to the attorney or the law firm for time spent working on a client's case. It is important to remember that attorneys? fees are not the same as costs associated with a case. The best way to think about costs is to assume that a cost is anything we have to write a check for. This might include expert witness fees, medical records fees, copying costs, mail, telephone, runner?s fees, notary fees, etc. Costs are calculated separately and are in addition to fees.
For example, an Attorney A representing Mr. Smith prepares a letter on Mr. Smith's behalf. Attorney A spends a total of two hours writing the letter at an hourly fee of $150.00 per hour. The attorneys' fees for preparing the letter are $300.00. In addition, Attorney A photocopies the 10 page letter 3 times at a cost of $.25 per page. Mr. Smith's costs for Attorney A preparing the letter are $7.50 or 10 pages multiplied by 3 at a cost of $.25 per page. The total expense to Mr. Smith is $307.50.
How are attorney's fees decided?
Most lawyers will ask every client to sign a written agreement (a.k.a. fee agreement, fee contract) that describes how the attorneys' fees will be determined. Depending on the type of case you have, the fee may be calculated on a contingency basis, an hourly basis, a flat fee or some combination thereof.
What is a contingency fee and what will you charge me?
A true contingency fee means that attorneys' fees are not paid until you win your case or your case settles. If there is no recovery, there are no attorneys' fees. If there is a recovery, the attorneys' fees are a percentage of the amount recovered on the case. Please note that costs are different than fees and costs are usually compensated after the total award is reduced by the contingency fee. Contingency fees are usually offered in cases involving accidents, personal injury, wrongful death or a collection case. Some states prohibit attorneys from charging contingency fee in criminal cases, divorces and bankruptcy cases.
Fees are very difficult to predict and often depend on the facts of the case, the cooperation of the other side, the cooperation of the client, the availability and type of experts required, the speed with which the matter may move through the judicial system, and a number of other factors. The contingent percentage will vary depending upon specifics of your legal matter.
What is a flat fee?
A flat fee is when the lawyer charges you a specific total fee for your case. Often the total bill is the flat fee plus costs or out-of-pocket expenses. Typical flat fees include $25.00 for a traffic ticket or $300.00 flat fee for representation on a misdemeanor criminal charge like shop-lifting or $150.00 for a divorce. Again, fees are very difficult to predict and must be determined on a case-by-case basis.
How do I avoid "sticker shock" when I talk to an attorney about fees?
A free lawyer for everyone would be great. Unfortunately, most attorneys have bills to pay like everyone else. While attorneys would love to provide free advice to everyone, you should expect to pay an attorney something for their time and professional service.
To prepare yourself for that initial quote for legal representation, ask yourself the following questions before you meet with an attorney: (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? Once you have answered these questions for yourself, you should have a pretty good idea about what you are willing to pay an attorney for legal services. If the attorney is significantly more expensive than you expected, you may be able to negotiate the fee, if the attorney is willing to do so.
What if I find out I cannot afford an attorney?
If you are concerned that you may not be able to afford an attorney, there are several options available to you. If you met with an attorney you liked and trusted, talk to the attorney to see if they will negotiate their fee. Some attorneys will agree to reduce their fee or allow you to make payments if you cannot afford the attorneys' services up-front. If you cannot find an attorney, call your state bar and ask if they have a reduced fee attorney-referral service. These services can match attorneys to clients who qualify for reduced fee attorneys. You can also contact your local pro bono project or legal aid center to see if your case qualifies for assistance from these attorneys.
Frequently fees are not discussed early enough, candidly enough, or in enough detail even though fees are an important part of the attorney-client relationship. Often, attorneys spend the least amount of time with their clients discussing fees. Why? Generally, because the discussion can be uncomfortable for both the client and the attorney.
What are attorneys fees?
Simply, attorneys fees is the money paid to the attorney or the law firm for time spent working on a client's case. It is important to remember that attorneys? fees are not the same as costs associated with a case. The best way to think about costs is to assume that a cost is anything we have to write a check for. This might include expert witness fees, medical records fees, copying costs, mail, telephone, runner?s fees, notary fees, etc. Costs are calculated separately and are in addition to fees.
For example, an Attorney A representing Mr. Smith prepares a letter on Mr. Smith's behalf. Attorney A spends a total of two hours writing the letter at an hourly fee of $150.00 per hour. The attorneys' fees for preparing the letter are $300.00. In addition, Attorney A photocopies the 10 page letter 3 times at a cost of $.25 per page. Mr. Smith's costs for Attorney A preparing the letter are $7.50 or 10 pages multiplied by 3 at a cost of $.25 per page. The total expense to Mr. Smith is $307.50.
How are attorney's fees decided?
Most lawyers will ask every client to sign a written agreement (a.k.a. fee agreement, fee contract) that describes how the attorneys' fees will be determined. Depending on the type of case you have, the fee may be calculated on a contingency basis, an hourly basis, a flat fee or some combination thereof.
What is a contingency fee and what will you charge me?
A true contingency fee means that attorneys' fees are not paid until you win your case or your case settles. If there is no recovery, there are no attorneys' fees. If there is a recovery, the attorneys' fees are a percentage of the amount recovered on the case. Please note that costs are different than fees and costs are usually compensated after the total award is reduced by the contingency fee. Contingency fees are usually offered in cases involving accidents, personal injury, wrongful death or a collection case. Some states prohibit attorneys from charging contingency fee in criminal cases, divorces and bankruptcy cases.
Fees are very difficult to predict and often depend on the facts of the case, the cooperation of the other side, the cooperation of the client, the availability and type of experts required, the speed with which the matter may move through the judicial system, and a number of other factors. The contingent percentage will vary depending upon specifics of your legal matter.
What is a flat fee?
A flat fee is when the lawyer charges you a specific total fee for your case. Often the total bill is the flat fee plus costs or out-of-pocket expenses. Typical flat fees include $25.00 for a traffic ticket or $300.00 flat fee for representation on a misdemeanor criminal charge like shop-lifting or $150.00 for a divorce. Again, fees are very difficult to predict and must be determined on a case-by-case basis.
How do I avoid "sticker shock" when I talk to an attorney about fees?
A free lawyer for everyone would be great. Unfortunately, most attorneys have bills to pay like everyone else. While attorneys would love to provide free advice to everyone, you should expect to pay an attorney something for their time and professional service.
To prepare yourself for that initial quote for legal representation, ask yourself the following questions before you meet with an attorney: (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? Once you have answered these questions for yourself, you should have a pretty good idea about what you are willing to pay an attorney for legal services. If the attorney is significantly more expensive than you expected, you may be able to negotiate the fee, if the attorney is willing to do so.
What if I find out I cannot afford an attorney?
If you are concerned that you may not be able to afford an attorney, there are several options available to you. If you met with an attorney you liked and trusted, talk to the attorney to see if they will negotiate their fee. Some attorneys will agree to reduce their fee or allow you to make payments if you cannot afford the attorneys' services up-front. If you cannot find an attorney, call your state bar and ask if they have a reduced fee attorney-referral service. These services can match attorneys to clients who qualify for reduced fee attorneys. You can also contact your local pro bono project or legal aid center to see if your case qualifies for assistance from these attorneys.
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