Before
you meet with the attorney, ask about fees.
Retainer
The word “retainer”
can mean two things. One is a regular sum of money (e.g. $1,000
per month) to keep him or her available for any necessary legal
service. Some businesses pay attorneys that way. “Retainer”
can also mean a deposit or down payment, held in trust, to be applied
against hourly fees earned later. The second is the more common
meaning.
Hourly
fee
Most lawyers charge
by the hour. However, not all lawyers charge the same hourly rate,
so it is critical that you ask what their rate is and those of their
support staff such as paralegals or on-staff experts. The hourly
rates of lawyers vary widely depending on the type of work and their
level of experience. Even within an individual law firm hourly rates
vary widely with more experienced attorneys charging more per hour
than more junior attorneys.
Fixed
fees
These are popular ways
to pay for routine legal work, such as simple wills, bankruptcy
filings or misdemeanor or traffic infraction representation and
real estate closings. You may be charged
What does it mean if an attorney
advertises “Pay only if you win”?
Contingency fees: This
means the attorney will accept your case but will not receive any
fee unless your case is successfully completed. The amount of their
compensation is a percentage of your award. It is important to ask
the attorney what their percentage is before and after legal expenses
are subtracted. By law, when an attorney is retained under a contingent
fee agreement the “contingency” does not cover the expenses.
This means that the client must always be responsible for case expenses
regardless of the outcome. The attorney is permitted to advance
these expenses but must be reimbursed at the end of the case.
Percentages applied
in various cases: The maximum fee that can be charged by law for
a personal injury case is 1/3rd of the net recovery (the gross recovery
less expenses). This maximum fee applies to all cases except medical,
dental or podiatric malpractice cases. In those cases attorneys
are limited to a sliding scale starting at 30% of the net recovery
for the first $250,000 recovered and reducing to 10% for amounts
over $1.25 Million Dollars. For other matters such as Workers’
Compensation, Social Security Disability and Supplemental Security
Income claims, fees are set by the judge or by the law.
Written
Fee Agreement:
You should always have
a written fee agreement with your attorney. This can be a document
you actually sign, or a letter from the attorney setting forth the
fee arrangement. Under most circumstances, attorneys are actually
required to provide you with a written fee agreement.
Tips to keep costs down:
* Be upfront and honest
with your attorney.
* Bring copies of all
relevant documents with you to your meetings.
* Focus on business
and be straight to the point.
* Write your questions
down in advance and keep them brief.
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