When you need legal help, hiring an attorney is an important decision. Your choice will depend upon many factors. These include the type of law the attorney practices, the experience the attorney has in that field and the cost of hiring the attorney.
There are many types of fee structures involved when hiring an attorney. The manner in which you will be charged depends on the type of case you have. For example, if you are involved in a personal injury case, such as an automobile accident, slip and fall, medical malpractice and the like, the attorney’s fee would be contingent upon the amount of money you ultimately receive. Hence, this is known as a contingency fee arrangement.
Some matters involve a flat rate fee. You pay one price for a specific legal service. Real estate purchases and sales are generally billed at a flat rate.
Other types of matters are billed on an hourly basis. Matters charged on an hourly basis are usually things such as litigation matters that are not plaintiff personal injury cases, estate matters, business/corporate matters and the like.
Usually, when you have a matter that you need to discuss with an attorney, you would make an appointment to explain your matter and determine if you want to hire this particular attorney and if the attorney wishes to take your case. Generally, a consultation fee is charged for the time to review the matter and discuss it with you. This is normal. Remember, the only thing that the attorney has to sell is his or her time, knowledge and experience. When an attorney spends time with you, that is time that they could be spending on other matters. Don’t be upset about paying a consultation fee - it is a standard item.
However, at the time that you make the appointment to see the attorney you should inquire as to the amount of the consultation fee. You may wish to ask about fee arrangements at this time, also. Obviously, if the fees that will ultimately be charged exceed what you wish to pay, then it is a waste of your money and time to go for a consultation if you do not intend on retaining that particular attorney.
If you decide that you want to retain the attorney and the attorney accepts your case, then you will be required to sign a "Retainer Agreement." A retainer agreement is a contract that binds you and the attorney in a business relationship, each bearing certain responsibilities and duties. Basically, the attorney is agreeing to provide services and you are agreeing to pay the fee for that service.
Be sure to read the Retainer Agreement carefully before you sign. Do not sign a retainer agreement unless you have read and fully understand the terms of the agreement you are signing! Remember, you are bound by the terms of that agreement - if you cannot perform your end of the agreement, don’t sign it. You will not be helping yourself, you will only wind up owing large sums of money and neither party will be happy.
Upon signing a retainer agreement, you be required to pay a "retainer fee." The retainer fee is a lump sum of money from which the hourly fees are drawn. In addition, you will be billed, based upon the schedule listed in the retainer agreement, for all the time spent by the attorney and the attorneys associates and staff on your matter.
Let’s look at an example:
Suppose you have a case against your landlord and you need to retain an attorney. If the retainer agreement states that you must pay fifteen hundred dollars upon retaining the attorney plus one hundred and seventy-five dollars per hour, the attorney will work on your case for eight and one half hours before the retainer amount has been exhausted. At that point, the attorney can either request that you replenish the retainer amount or will bill you monthly for all time spent on your matter.
Keep in mind, expenses on your case are billed separately and are not part of the legal fee. Expenses may include court costs, process server fees, transcript fees and other items.
When you receive the bill from your attorney, make sure you review it carefully so you can see what the attorney is doing on your matter and if the amount is correct. But don’t be surprised to see items on your bill such as telephone conversations. Remember, an attorney is selling you his or her time, money and experience. A telephone call, even with you, the client, is a valid, billable item.
A properly prepared bill should give you enough detail so that you can identify what it was the attorney did on your case.
The legal bill should reflect the number of hours spent by the attorney and associates/staff working on the case. That number is multiplied by the hourly billing rate. The retainer amount was deducted from the total and the remainder plus the cost of the investigator is what is owed to the attorney.
If you have questions about your legal bill, make sure that you contact your attorney and ask the attorney to explain those portions that you do not understand or have questions about.
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