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There are many types of fee structures that law firms and
clients may agree upon for a particular legal matter. It is
highly recommended that the fee agreement should be in writing.
Hourly Fees
An attorney may bill by the hour when representing clients
in business transactions, business litigation, and when representing
defendants in civil litigation. Hourly fees vary widely depending
on case complexity and the experience of the attorneys handling
the matter. Retainers often are required for cases handled
on an hourly basis.
Contingency Fees
Contingency fees are most often utilized in personal injury
cases, class actions, insurance suits, employment claims,
and other types of litigation in which the attorney is representing
the plaintiff. A contingency fee means that the client does
not owe any attorney fees unless the client recovers something
in the case, either by way of settlement or judgment. Depending on the complexity and difficulty of
the case, and the stage at which recovery for the client is
obtained, contingency fees might range from one-third to one-half
of the total recovery.
Fixed Fees
Fixed fees often are charged for routine transactions such
as wills, incorporations, bankruptcies and in some criminal
matters. Fixed fees generally are not used for complex litigation
because the duration of the case and work required are difficult
to predict.
Reverse Contingency
Reverse contingency arrangements are sometimes used when
an attorney represents a defendant. The reverse contingency
fee may be based on a percentage of the amount an attorney
can save the client in settling or winning the case. |
