Fees

How much is it going to cost? Isn't just talking to a lawyer expensive? These two questions are probably the two most responsible for people avoiding legal consultations they sorely need. It shouldn't be a concern, and here are some tips for dealing with the issue.

The type and amount of fee will differ by the area of practice and the experience of the attorney you are meeting. Most cases are handled one of three ways.

First, the hourly rate. Most often used in transactional, family law, employment and criminal matters, this is where you agree upon an hourly rate for work to be performed. Most attorneys will require a lump sum up front (called a retainer), which is deposited into an escrow account and then withdrawn as the work is being performed. The client should receive a monthly statement telling them how much of the retainer has been used and how much remains. As the attorney is basically selling you his time, you can expect to be billed for every phone call, letter, document, hearing or other event that requires him to focus exclusively on your case. The attorney should not bill for basic research, as you have presumably hired them because of their expertise in a certain field.

Next is the contingency fee, which is where the attorney takes a percentage of whatever damages he is able to recover on your behalf. The benefits is that you do not have to pay any money up front, but the downside is that you may end up paying substantially more in fees. The reason for this is that you are basically asking the lawyer to assume the risk that he may not be paid at all should the case ultimately be lost. In some cases, the attorney is also being asked to advance costs for litigation which can be thousands of dollars. In exchange for the attorney taking this risk, they typically get a higher fee. Typically these arragements are only available in personal injury, workers compensation or disability cases. Percentages can range from 20% to 40%, depending on the type of case and level of risk.

Finally, there is the fixed fee. This is usually limited to cases that are fairly simple proceedurally, and require a very predictable amount of time. Simple criminal matters, bankruptcy or simple administrative claims are the most common. The client is given a price for services up to a certain point. The benefit is that you know what it is going to cost you, the downside is that the attorney is typically not going to do anything outside of what you discussed. It is not practical for cases with any level of complexity.

Typically fees in all of these catagories are negotiable to an extent. This depends on the attorney, his level of experince and the amount of business he has at the time. There are many competent attorneys in the field, so the client should not feel he has only one choice and he has to pay that attorney his asking price. If the fee is something that is well outside of your means, look for another attorney who might do a little better on the fee. There is a certain amount of "you get what you pay for," as the less experienced attorneys tend to have the lower rates. But in a competitive market, very competent attorneys will be willing to compromise their fee to secure the business. As an example, many firms want a straight 40% contingency fee in the personal injury cases they take. In my office, I recognize that there are times when a case settles very quickly and the fee does not need to be as high under those circumstance. So in cases that are not too complex, I will offer the client a 30% fee prior to the pretrial conference and 40% after that time. The reason being that once the case is at the pretrial stage I have expended much more time and expense. Converely, prior to that I may not have spent much time at all in bringing about an acceptable settlment.

One final thing to keep in mind is that most attorneys offer a free initial consultation. You should not have to pay $150 to find out you never had a case to begin with. Many of us will offer a free 30 minute to one hour consultation to determine whether or not you have a case we can pursue. There is no obligation until you have actually signed a fee agreement with the attorney, so call and find out if you have a case before you make mistakes that will damage that case.