return to home page ABOUT ATTORNEY'S FEES
What is the Basis for a Legal Fee?
Attorney's fees are generally a matter of agreement between the client and the attorney. There are no recommended fee schedules. While fees vary from attorney to attorney, the basic ingredient is the amount of time spent on a particular problem. Clients are often unaware that the advice given to them in a few minutes or the few pages of a document prepared for them are products of much time and effort by the attorney and often by others in the office such as legal assistants and secretaries.
How do Lawyers Compute Their Fees?
There are four usual methods of calculating legal fees;
(2) Contingency fee arrangements
(4) Percentage fee arrangements
An hourly rate depends on the circumstance of the case and the experience and expertise of the lawyer. Under this arrangement, the client is generally responsible for the out-of-pocket expenses (filing fees, transcripts, sheriff's costs) as well as for the time spent performing the legal work (meetings, research, drafting documents, phone calls).
This is an arrangement used primarily in personal injury and collection cases. They are not allowed in criminal or divorce matters. The lawyer receives no fee unless money is recovered for the client. If money is recovered, the lawyer then received an agreed-upon percentage of the recovery, generally ranging from 25 to 45 per cent. The percentage often depends upon the amount of work anticipated, the probability of recovery and the complexity of the issues involved. If there is an appeal, the percentage can be higher. Contingent fees can be complied to gross receipts or net receipts. In any event, the client would be responsible for all out-of-pocket expenses such as filing fees and depositions. If an attorney is dismissed by the client prior to the conclusion of the matter, the client may be responsible for payment of a reasonable fee for services rendered by the attorney. All contingency fee agreements must be in writing (in Massachusetts) and signed by both the attorney and the client.
With the flat fee arrangement, the attorney will render a specific legal service to the client for a fixed sum of money. Criminal defense matters or the preparation of a simple will are often the subject of a flat fee arrangement. If there are unexpected complications which arise, it is sometimes necessary to modify such an arrangement.
A percentage fee arrangement is sometimes used in the administration of an estate or in the selling or purchasing of a home. Then fee would then be a fixed percentage of the estate or the value of the property being transferred.
When Should You Discuss Fees?
The lawyer and the client should discuss the cost of the legal services at the initial meeting. The lawyer may not be able to forecast the exact amount of the time and effort required, but should be able to give the client an estimate based upon the information which the client can provide and the lawyer's past experience. The client should not hesitate to raise the issue of legal fees at any time with his or her attorney. The client has a right to a detailed billing showing the lawyer's time and efforts in those instances where the fee is based upon an hourly rate.
Who is Responsible for the Fees?
The client must pay the fees and expenses. In some cases that go to court, the judge may award a partial or full fee to be paid by the opposing side. This does not release the client from the obligation to pay the attorney.
When is the Fee Paid?
Most case require a retainer fee or deposit to apply to the lawyer's expenses or future charges. Clients should expect to pay when they retain an attorney. The attorney will generally bill on a monthly basis and the client is expected to remain current. A contingency fee case is billed upon completion of the case, except for expenses which may have been incurred.
Can Legal Fees be Limited?
The client should discuss legal fees and related costs during the initial meeting and consider a written fee agreement. The client should ensure that he or she is totally familiar with the basis on which the fees will be calculated. If the lawyer's work is concluded and the fees required are less than the amount of the retainer, the balance will be refunded. Being fully prepare with documents and information at the initial meeting can often reduce the time that an attorney must spend seeking that information. The client should be as brief as possible in all communications and refrain from frequent phone calls for which he or she will be billed. The client should always communicate openly and honestly with the attorney. Failure to do so can often result in added expenses.
Information extracted from Massachusetts Bar Foundation pamphlet
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