What determines your Legal Fee?

· Does the attorney charge a FLATE FEE?

· One dollar amount is paid for a typical legal case.

· Flat fees are usually charged when the services being provided are more predictable.

·  Ask the lawyer exactly what services and expenses are and are not covered in a flat fee.

· Does the attorney charge an HOURLY FEE?

· Most legal fees are charged by this method.

· The more experienced an attorney, the higher the hourly rate.

· Cheaper might be better, but a more expensive and experienced lawyer could very well handle your case faster and better.

· The more complex the facts of your case, then you should expect higher fees.

· Ask the attorney how many hours it will take to complete your case.

· Does the attorney charge a RETAINER FEE?

· This fee is based on an hourly rate.

· Clients put money into a special account called an escrow account.

· Attorney deducts fees as services are completed.

· Once retainer is used and more work needs to be done, client must pay another fee.

· The attorney should give the client an idea of how much longer case will take.

· The client should be aware that the retainer fee is generally refundable if not used by the lawyer.

· Is there a STATUTORY FEE?

· A statutory fee is a fee set by law.

· Some legal work requires the court to set or approve the fee.

· Is there a CONTIGENCY FEE?

· A contingent fee  means the lawyer charges no fee .

· But instead earns a percentage of the settlement or judgment, if any is awarded.

·  Contingent fees — typically one-third of the settlement or judgment — can be negotiated.

· In some legal cases, contingent fees are not allowed.

· Another subset of Legal fees:

An attorney can consider how much or how little to charge an hourly fee, flat fee or retainer fee based upon some other client factors.

· Low Bono: 

§  Sliding scale based on client’s income

§  Must qualify

§  Must provide proof of income

§  Most private attorneys do not accept these types of clients

· However, some accept these clients as community service

· State Bar requirement in some states

§  Non-profit organizations usually accept these types of clients

· Pro Bono:

§  Free/no legal fees are paid

§  May have to pay a one time nominal administrative fee

§  Must qualify

§  Must provide proof of income

§  Most private attorneys accept a hand full of these type of cases

· State Bar requirement in some states

· Community service

§  Non-profit organizations usually accept these type of clients

· Market Rate:

§  Most attorneys prefer this rate in order to pay their bills

§  Rate set by Laffey Matrix

· Based on how many years out of law school

· Available since 1982

· Provided by United States Attorney's Office for the District of Columbia

§  Rate set by American Bar Association

· Based on how many years practicing law

§  Other rates

· Cost of living for current area

· What are other attorneys charging for same service/same area

· Based on area of practice

· Based on years of experience in a particular area of law