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    Billing Options and Influencers

    by SimpleLaw on
    Legal client Attorney Case management software

    There can be a variety of legal expenses with any case. In this blog, we focus on attorney costs and legal billing methods. Familiarize yourself with the different ways attorneys charge for their services, as well as some factors that affect prices. SimpleLaw offers you a guide so you are one step closer to hiring the right attorney at the right cost.

    Legal Billing Rates and Structures

    Hourly Billing Rate

    An hourly rate is a common legal billing method. The agreed-upon fixed rate is charged for every hour that is spent on all aspects of the case. That includes time spent, researching, writing motions, meeting with opposing counsel, and more, until completion of the case. Prices can vary from $150 to $1,000 or more per hour, depending on the attorney, geographic area, and more. This payment structure is commonly used in contested divorces or contract litigation. Your attorney should give you an estimate of the number of hours in advance. As the case proceeds, always feel comfortable asking for updates.

    Flat Fee Rate

    A flat fee is a single and specific legal billing fee that is not dependent on the time spent on the case, unlike the hourly rate. This method is more common for simple and uniform cases, like business formation and lease preparation. Before you choose this method, however, keep in mind that the flat fee does not always cover all costs. Paralegal services, filing fees and more can be required in your case. Always ask your attorney if there are other fees not included in the agreed flat rate.

    Contingency Fee

    A contingency fee is used when an attorney receives payment only if the client is awarded a cash payment. In this method, a percentage is agreed upon, between the client and attorney, of how the cash award will be shared if the case is successful. The rate is usually around 33% of the total award. This payment method is typically used in civil suits like medical malpractice or personal injury cases. Some attorneys take their percentage before the costs are deducted from the total and some take theirs after. So, be clear with your attorney on the details of how the rate will be calculated.

    If these cases go to trial, the fee turns into a “sliding scale” contingency fee agreement. This allows the attorney to charge a higher percentage of the profit if trial is required. The sliding scale is typically between 40 to 45 percent. Again, remember to ask your attorney.

    Retainer Agreement

    A retainer agreement is an advance payment for legal services. It can be periodic-based, like monthly, flat, or a certain time period paid in advance. A periodic-based fixed fee is paid in rates. For example, a monthly retainer is paid to a lawyer for providing advice at board meetings. A flat fee can be used for a specific matter, like a criminal defense case. A fee in advance pays for future predicted costs that are often not refunded back to the client if unused.

     

    Fee Factors

    There are other influences that can affect legal costs. The geographic location of your case can affect costs. Attorneys in urban areas may charge more than rural, simply because the cost of running a firm may be higher in an urban area than rural.

    The degree of difficulty of your case can influence pricing. The more complex a case, the more support is needed. Attorneys and paralegal services have more documents to review, more witnesses to dispose, and more procedures to go through. So, the bigger the case, the bigger the cost.

    The experience and reputation of your prospective attorney can determine fees. More experience is more valuable, and therefore, likely a higher fee. However, choosing a lawyer who is more skilled and experienced with your type of case can be a good investment. Their experience saves money by potentially reducing the amount of time needed for the case and increasing the chance of receiving an outcome in your favor.

    Remember to consider other fees, like court costs. Some attorneys include them in their own bill and some do not. Besides paying your lawyer, you still need to think about paralegals, clerks, assistants, and court filing fees.

    Before choosing an attorney to represent you, keep in mind that costs play an important role in your legal experience. SimpleLaw offers a short and concise list of things you need to know before choosing the right attorney to fit your needs. After reading this, you should have a better understanding of your available options. Because it should be, well, Simple.

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