Legal Fees
Attorneys'
fees are based on several factors such as the complexity of
the matter and the amount of time spent serving the client.
There are, essentially six kinds of fees: first, there is
the retainer fee; second, the contingency fee; third, a fixed
fee; fourth, an hourly rate; and fifth, a fee set by the court
and sixth, a fee set by statute.
A retainer
is a down payment in advance. It may be charged by an attorney
to handle a particular case, and will be applied as a credit
on subsequent billings.
A contingency
fee is frequently used in lawsuits involving money damages.
The attorney agrees to accept a percentage of the award as
a fee. An additional percentage may be charged if the case
is retried or appealed to a higher court. If there is no award,
the attorney receives no payment, but the client may be charged
for such expenses as filing costs, investigations, and fees
paid to witnesses. If the client wins, these charges are deducted
from the award.
A fixed
fee is a set amount charged for services such as drafting
a simple will or handling an uncomplicated real estate transaction.
Most attorneys
have established hourly or unit rates for their services.
There are no uniform, profession-wide figures and rates may
vary widely depending on factors such as the attorney's experience
and reputation. In addition to the hourly or unit rate, the
client will be charged for any direct, out-of-pocket expenses
the attorney incurs.
A fee
can be set by the court for such legal services as handling
an estate. When reviewing the attorney's application for fees,
the judge will consider the amount of work required, it's
complexity, the skill required and the lawyer's usual rates.
The type
of fee charged is usually controlled by the type of case.
For example, in some divorce cases where both parties agree
on matters of settlement, the attorney may be able to set
a fixed fee. But when the parties do not agree, the attorney
may only be able to indicate what the minimum will be, charging
for additional time expended beyond the original estimate.
Here are
some suggestions for reducing the cost of legal services:
- when
meeting with an attorney regarding a problem, bring along
any documents that might be pertinent. Also, prepare a written
statement of the problem and the solution you desire.
- discuss
the fee with your lawyer during the initial meeting.
- present
all the information you have, even though some of it may
seem unfavorable to your case.
- instead
of making frequent phone calls or visits, ask the attorney
to inform you of developments as they arise.
- finally,
in evaluating the cost, remember that much of an attorney's
professional services are rendered when the client is not
present.
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