A lawyer fee agreement is a contract between a client and an attorney. The legally binding agreement establishes how much the attorney will receive and how much the client will pay. The attorney will spell out precisely what they’ll do in the deal. This deal could be based on a set hourly rate or a percentage of a total settlement. The particular details vary depending on the lawyer and the case. In criminal cases, most lawyers charge an hourly rate that is due before representation. The attorney usually receives a percentage of the settlement in civil or personal injury lawsuits. The total percentage varies by case, but many attorneys charge from 20% to 50%.
Flat Fees Versus Contingent Fees
There are two significant styles of billing in an attorney-client relationship. A flat fee is agreed upon upfront. This amount will not change; it’s been stipulated in the agreement. The flat fee may be hourly, such as for court appearances. It could also be a set charge for preparing legal documents. If you have a will prepared, you may pay a flat fee. While most criminal cases and general law work use the flat fee, you will probably sign a contingency fee agreement with your lawyer if you’re dealing with a personal injury lawsuit.
Contingency fees are based on the total amount of any settlement. For simplicity, a contingency fee where the lawyer asks for a third means that the attorney will receive $333,333.33 in a million-dollar settlement, and the client will receive the remainder of the million dollars. The good news about a contingency fee is that the client pays nothing if the lawyer loses the case. The attorney will do all the necessary work. He or she will file the initial pleading, investigate the issue, and prepare the case for a court of law. Because the attorney is taking a risk that he or she may not win, a contingency fee is usually higher than a flat fee.
In a contingency fee arrangement, the lawyer is motivated to do his or her best work and present the strongest case. A lawyer who wins a more significant settlement will receive higher pay for their labor. Thus, clients who sign a contingency fee can rest assured that their attorney will prepare the strongest case and advocate for the highest settlement. According to model ethical rules, the contingency fee should be agreed to in a written statement. Both the attorney and the client should sign the agreement. The client should fully understand what is included in the contract before signing.
In addition to setting the fee, the agreement should specify exactly what the attorney will do. A case may require an appeal. The lawyer fee agreement should let the client know what to expect in case of an appeal. The appeal requires extra work, which may not be included in the original fee. On the other hand, the attorney may consist of any and all appeals as part of a flat fee. Either way, you should know what your attorney will do for you before signing the contract. Briefly, most agreements will stipulate:
- Lawyer’s charges or hourly rates
- expenses, such as a private investigator
- payment terms
- how disputes will be resolved
Scope of Services
While the amount you’ll pay your attorney should be in the fee agreement, you should also know exactly what your attorney will do. He or she should appear by your side every time you appear in court. There may be associated secondary expenses, such as copying legal documents and conducting depositions. Collection proceedings are another issue to consider. If you’re suing a person or an uninsured motorist, you need to be sure that you can actually collect any amount awarded to you. Thus, these issues must also be included in the lawyer fee agreement and spelled out precisely. A complete understanding on both sides minimizes the chance for disagreements later on.
Ending the Relationship
Sometimes, the attorney and client don’t see eye to eye. If this happens, you need to be sure that you can end the relationship and hire a different attorney. Lawyers are given wide leeway in preparing cases. After all, you wouldn’t tell your doctor how to conduct a surgery. But in the event that you and your attorney can’t agree on your legal strategy, you should know how and under what terms you can discharge counsel.
When choosing a lawyer, you need to do your homework. Every attorney is different. They may charge more or less for services; some will naturally do a better job than others. Understand what you’re agreeing to before you decide and sign a contract. You should know how much you’re being charged and what your attorney will do. It’s wise to look around and find aggressive representation before you trust your future to an attorney you have never met. It’s only bright to comparison shop to find the best lawyer for your case. For your free case evaluation, contact us today.