People often ask how much it costs to hire a lawyer. The answer is, it depends.” Generally speaking, there are three fee structures or ways in which attorneys charge for legal representation: contingency fee, hourly billing, or flat fee. The type of fee structure used depends both on the attorney and/or particular law firm you consult as to the type of case or representation you need.
Contingency Fee Structure
Contingency fees are paid to an attorney based on the legal outcome or outcome they obtain on your behalf. If the attorney fails to get the desired result for you, then he or she does not get paid. Alternatively, if the attorney achieves a successful outcome, they are paid at the predetermined fee or rate.
Contingency fees are most often used in personal injury cases. When you initially hire an attorney to represent you in a personal injury matter, no money or attorney’s fees are paid. Instead, you and your attorney agree that if, and only if, they are successful in obtaining money on your behalf, you will be paid a percentage of the amount recovered. This percentage differs by state and case type. Most often, the percentage is a third or 33% of the total recovery. However, in more complicated cases, such as those involving malpractice or product liability claims, or even less complicated cases that require litigation or the filing of a lawsuit, attorneys may require a contingency fee of up to 40% of full recovery.
Contingency fees are very attractive to clients because they do not require any out-of-pocket expenses for representation. However, it is important to note that contingency fees are not allowed in criminal or family law cases, such as those involving divorce, child custody, or other domestic matters.
Hourly Rates Rate Structure
Hourly rates are often charged by attorneys who represent large organizations, such as corporations, nonprofits, or other entities capable of providing legal services on an hourly basis. This fee structure is most commonly used in connection with corporate law, business litigation, and insurance defense. Hourly rate billing is the most expensive type of rate arrangement for customers.
In this circumstance, you are billed monthly or quarterly for the time your attorney or agent actually spent working on your case during the billing period. Attorneys who charge by the hour for everything including, but not limited to, phone calls, copies, inquiries, letters and emails, research, court appearances, travel time, and any other time spent working on a case.
Before agreeing to an hourly rate structure, it’s important to know what types of services are billed; how often; in what time increments; since rate Companies may charge varying fees depending on who in the organization actually performs the billed service, such as a secretary, investigator, paralegal, associate attorney, or senior attorney. As stated above, hourly billing is most often employed by attorneys representing corporations or wealthy clients. Also used in connection with family law work; tax and estate planning; higher law; areas of civil law other than personal injury; and complex criminal defense cases.
Flat Rate Fee Structure
The third and final type of rate structure is the flat rate. With this agreement, you and your attorney agree to a flat fee for all legal representation related to a particular matter, regardless of the time and effort required to perform the agreed-upon legal work. Some clients prefer this form of payment because it limits their financial exposure and gives them certainty about the cost of legal representation. Lawyers who charge flat fees run the risk that the fees they quote will fairly compensate them for the estimated time needed to perform the required legal service.
In some cases, the attorney may complete their work in less time than expected and thus enjoy a financial windfall from a fixed fee arrangement. Alternatively, and in many cases, attorneys underestimate how much time and effort is required in a particular case. In these cases, the attorneys bear the risk that the flat fee quoted may not be fair compensation for the actual work required. Flat fees are very typical in criminal defense cases. Many attorneys charge a flat fee for all pretrial representation related to a case, and then a second installment flat fee as long as a case is scheduled for trial.
Choosing the best lawyer for you
Now that you have a better understanding of the types of legal fees, the question remains: how much does it cost to hire an attorney? The answer is still “it depends”. Legal fees vary by geographic area; the type and nature of the case in question; and the private attorney you choose to retain. Clients often have the mistaken belief that all attorneys are the same: one size fits all. This couldn’t be further from the truth.
Lawyers, even those who practice in the same geographic area and work on the same types of cases, are not created equal. Each attorney has their own unique experience and background. For example, some attorneys have a lot of trial experience and some do not. Researching the true experience and background of an attorney can be difficult. With the legalization of advertising for lawyers, many try to dazzle potential clients with fancy websites and colorful language about their skills and abilities. Do not judge a book by its cover. Meet with the attorney in person; ask about her reputation; and ask for examples of cases they have worked on in the past.
Aside from experience, lawyers also have different values and personalities. Some attorneys are more hardworking and dedicated to the needs and concerns of clients than others. For example, how many times have you heard the complaint that “my attorney never returns phone calls” or “my attorney is always out of the office.” These complaints do not describe all attorneys equally. Some attorneys return client calls the same day the client leaves the message. Other work nights and weekends to be available for clients who otherwise work during the day and are unable to meet with their attorney during normal business hours.
The bottom line is that when it comes to lawyers, just like restaurants, cars, and other consumer goods, the old adage is true: You get what you pay for. If you prefer a lawyer who charges McDonald’s prices, you will surely find one. However, if you decide to hire such an attorney, don’t be surprised if your representation has the shoddy quality of a McDonald’s hamburger. Perhaps you prefer quality and competition over low prices.
Whatever your needs, take the time to find an attorney that’s right for you. When it comes to legal representation, choose an attorney who is qualified, competent, experienced, cares, and dedicated to your case. After all, what price is too high to pay for your rights and your future?