There are different types of legal fee arrangements used when hiring a lawyer. It is important to distinguish between them in order to understand what is fair and appropriate. Understanding legal fees and retainer agreements is also essential to managing billing expectations and will help you estimate how much it will cost to hire a lawyer.
The best way to assess how much it will cost to hire a lawyer is to comparison shop. It is prudent to contact several lawyers (perhaps using a lawyer directory) to discuss their experience, expertise and fees. Doing so will help you manage expectations and also help you identify the questions you need to ask when interviewing an attorney.
Contingency fee arrangements may not be permissible or appropriate in certain types of cases such as criminal defense, divorce and child custody matters. The most common types of cases where lawyers accept contingency fee arrangements are personal injury, medical malpractice, employment discrimination and wrongful termination claims, class action lawsuits and collections.
How Much Should I Pay a Lawyer?
What is an appropriate fee for a lawyer? How much should I pay for legal services? The answer will depend upon several factors which include:- The geographic region
- The lawyer's level of experience and expertise
- The lawyer's reputation and record (a courtroom lawyer may consider percentage of cases won)
- How much time is spent on the issue and case
- How unique and/or difficult the issue in the case may be
- The results of the specific case (some agreements may provide for different fee levels based upon how much money is awarded to or recovered for the client)
- The actual costs and overhead required for performing the work (costs associated with New York City are usually greater than Cincinnati)
- The supply and demand for the work provided (high demand and short supply of legal expertise leads to higher prices)
The best way to assess how much it will cost to hire a lawyer is to comparison shop. It is prudent to contact several lawyers (perhaps using a lawyer directory) to discuss their experience, expertise and fees. Doing so will help you manage expectations and also help you identify the questions you need to ask when interviewing an attorney.
Types of Fee Agreements
There are several different types of attorney fee agreements.Consultation Fee
A lawyer may charge a client an hourly or fixed fee for a first meeting. In this meeting, the attorney will review your case, discuss whether he or she can assist you and also provide expert legal insight into your case. Before meeting with a lawyer it is important to inquire about whether there will be a consultation fee and what it will cover. In many contingency fee cases (such as personal injury or employment related matters), an initial consultation will be free.Contingency Fee
In this type of arrangement, the lawyer's fee is contingent upon the lawyer winning the case. The lawyer is paid a percentage of the amount of money awarded to or recovered for the client. While the client only pays a legal fee if the case is won (from the proceeds), the client is still responsible to pay expenses, regardless of the outcome. It is common to see a one-third or 33% contingency fee although this number may range from 25 to 40 percent. Factors used for setting a contingency fee rate are usually based upon:- The type of contingency fee case (personal injury lawyers, discrimination, collections)
- The likelihood of success of winning the case
- The likelihood (or not) of collecting money from the defendant(s)
- How far a case has progressed (if a new attorney is taking over for another lawyer)
- Limitations imposed by the court or state or federal law
- The amount of money in issue (with larger amounts of money, the lawyer may be willing to accept a smaller percentage of the proceeds)
Contingency fee arrangements may not be permissible or appropriate in certain types of cases such as criminal defense, divorce and child custody matters. The most common types of cases where lawyers accept contingency fee arrangements are personal injury, medical malpractice, employment discrimination and wrongful termination claims, class action lawsuits and collections.