12 Do all lawyers charge the same kind of fee?

ents. And most of them must be put in writing.
If the fee arrangement is for a contingency fee—
which means the attorney will get a percentage of
the settlement if you win the case—the agreement
must be in writing. And it must include, among
other things, the agreed-upon percentage.
With non-contingency arrangements, the fee
agreement must include the lawyer’s hourly rate
and other standard rates, fees and charges that
would apply to your case. It also must explain the
general nature of the services that the lawyer will
provide for you.
Sometimes it is impossible for a lawyer to know
exactly how much time your case will take. You can,
however, ask the lawyer to include an estimate of
the time and costs in a written fee agreement or let-
ter. But do not forget that many unexpected factors
could drive up the cost. For example, your case
might involve a cross complaint. This means that the
person you are suing is also suing you. Across com-
plaint could affect the type and amount of the
lawyer’s fee.
Apart from any fee you may pay for your first
meeting with a lawyer, you probably will be
charged either a fixed, hourly, retainer, contingency
or statutory fee.
Fixed fee. This type of fee, sometimes called a
standard fee, is commonly used in routine legal
matters. For example, a lawyer may charge all
clients the same amount to draw up a simple will
or handle an uncontested divorce. Legal clinics
often use this kind of fee arrangement. Before
agreeing to a fixed fee, find out what it does and
does not include. You also should find out if any
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other charges might be added to the bill.
Hourly fee. Some lawyers charge by the hour,
and the amount can vary from lawyer to lawyer.
Ask the lawyer to estimate the amount of time your
case will take. Suppose you contact three lawyers,
and one charges more per hour than the others. You
will need to decide whether this lawyer has the
skills or experience that could bring your case to a
faster solution. Also, remember that circumstances
may change, and your case may take longer to han-
dle than the lawyer initially expected.
Retainer fee. This kind of fee can mean differ-
ent things to different people; make sure you
understand your particular fee agreement.
A retainer fee can be used to guarantee that the
lawyer will be available to take a particular case.
This could mean that the lawyer would have to
turn down other cases in order to remain available.
With this kind of retainer fee agreement, the client
would be billed additionally for the legal work that
is done. If the fee agreement is a true non-refund-
able retainer agreement, you may not be able to get
your money back — even if the lawyer does not
handle your case or complete the work.
A retainer fee also can mean that the lawyer is
“on call” to handle the client’s legal problems over
a period of time. Certain kinds of legal work might
be covered by the retainer fee while other legal
services would be billed separately to the client.
In addition, a retainer fee sometimes is consid-
ered a “down payment” on any legal services that
the client will need. This means that the legal fees
will be subtracted from the retainer until the
retainer is used up. The lawyer would then bill
you for any additional time spent on your case or
ask you to replace the retainer.
Contingency fee. This kind of fee is often used in
accident, personal injury or other types of cases in
which someone is being sued for money. It means
that you will pay the lawyer a certain percentage of
the money you receive if you win the case or settle
the matter out of court. If you lose, the lawyer does
not receive a fee. Either way, though, you will have
to pay the court costs and certain other expenses.
And, depending on the circumstances, these charges
could be quite high. Ask the lawyer for an estimate
of such costs. In some cases, the lawyer may pay
some of these costs for you when they are due,
using money that you receive from the case.
283052_StateBar_B_r1:Pam06_Find6 1/5/09 10:40 AM Page 12If you agree to a contingency fee, make
sure the written fee agreement spells out the
lawyer’s percentage and whether his or her share
will be figured before or after other costs are deduct-
ed. This can make a big difference. Suppose, for
example, you were awarded $20,000 in a personal
injury case and your lawyer was entitled to 40 per-
cent. Court costs and other expenses amount to
$2,000. If your lawyer’s share is figured after the
$2,000 is deducted, the lawyer will receive 40 per-
cent of $18,000—or $7,200; you will receive $10,800.
But, if the lawyer’s share is figured before costs are
deducted, the lawyer will get 40 percent of $20,000
—or $8,000; then, after the $2,000 in costs is deduct-
ed from the remaining amount, you will get $10,000.
Contingency fee agreements must state, among
other things, whether you will be required to pay
the lawyer for related matters (matters not specifical-
ly covered in the written fee agreement) that might
come up as a result of your case. In many cases, the
agreement also must note that the attorney’s fee is
set by the attorney and the client—not by any legal
statute or law.
Statutory fee. The cost of some probate and
other legal work is set by statute or law. For cer-
tain other legal problems, the court either sets or
must approve the fee you will pay