The number one reason people avoid pursuing a lawsuit is the cost of hiring a lawyer. Costs associated with hiring a lawyer can be pricey. Therefore, it’s an important aspect to consider when deciding whether or not to go through with your claim. Legal fess are set and determined by a contract between the attorney and the client. The obligations of both parties and payment are discussed, agreed upon, and then most likely put in writing.
What factors are considered?
- Time: Every type of case is different and beyond that, every individual case is different. The time the attorney puts into your case is a top factor when determining legal fees.
- Experience: Hiring any attorney is a cost to consider when pursing a lawsuit, and attorneys with years of experience and high success rates most definitely
- Results: A top factor, especially in contingent agreements, is whether or not you are part of the winning party.
- Overhead Costs: Overhead costs such as secretarial assistance and investigators may have an effect on the amount your attorney charges.
What are the primary types of fee arrangements?
- Hourly: An hourly rate is an arrangement in which the total fee is determined by the attorney’s hourly charge times the number of hours required to do the job. The hourly charge is set by the attorney and determined by the factors listed above.
- Fixed Fee: A fixed fee arrangement is one in which a specific amount is agreed upon for a known service. These are most commonly used in cases that occur frequently, such as divorce, bankruptcy, wills, or, contracts.
- Contingent: A contingent agreement is one in which the attorney receives a percentage of an amount recovered on the client’s behalf. If no recovery is made, the attorney receives no fee.
- Retainer: A retainer fee is when the client makes a down payment from which the charges that accrue as the work progresses are deducted.
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