This section discusses legal fees and expenses. It is always appropriate and vital to discuss fees when you first visit a lawyer. You have a right to know how you will be charged, how much the case is likely to cost, and when you have to pay.
Various factors and provisions may influence the costs of legal services. Your lawyer can clarify how fees are computed and may outline options available to you. The lawyer can occasionally provide a reasonable estimate of the time and costs involved in serving your particular needs. Frank discussions about fees and your ability to pay will avoid any misunderstandings with the attorney.
Legal fees depend on a number of factors, including the amount of time spent on your quandary; the lawyer's ability, experience, and repute; the uniqueness 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 affect the fee charged.
Attorney fees are characteristically prearranged in one of three ways and depend fundamentally on the case itself. Most attorneys will charge one of the following: a flat fee, an hourly rate, or a percentage of settlement moneys from a case. Some attorneys may charge a retainer fee, which is distinctive for businesses and certain types of cases. In addition to the attorney’s fees, other fees may apply separately. Examples of other types of legal fees include filing fees, criminal fines, court costs, and so forth.
· Consultation Fee: The lawyer may charge a predetermined 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 operating expenses. Contingency fee percentages vary. 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.
· Hourly Rate: The lawyer will charge you for each hour (or portion of an hour) that the lawyer works on your case. This is the most typical fee arrangement. Some lawyers charge different fees for different types of work (legal research versus a court appearance).
· 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.
· 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.
· Retainer Fees: 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 occur. Many retainer fees are non-refundable unless the fee is deemed unreasonable by a court.
· 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
· Filing Fees are fees charged for the filing of a legal document or court record, court costs are fees charged for appearing before a judge or magistrate, and criminal fines are a type of punishment in the form of money owed for violating the law.