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What
about Legal Fees and Costs?
Attorney fees are
important to both attorney and client. To the client, the fee
is the cost of the legal service purchased. To the attorney,
the fee represents his or her compensation.
Whether a case is civil
or criminal usually affects the fee arrangement.
In criminal cases it is
common to have all legal fees paid in advance or to require
posting of something of value as security for payment.
A common fee arrangement
in civil injury cases is the contingent fee. A person injured
in an accident might enter into a contingent fee contract
where the lawyer's fee will be based on a percentage of the
recovery. If there is no recovery, then the client would owe
no attorney fee. There may, however, be a charge for the
attorney's expenses such as filing fees, court reporter fees,
fees for expert witnesses, etc. The decision to enter into the
contingent fee contract is a matter for agreement between the
attorney and client.
For routine legal
services, the fee is often a fixed one. Examples are
preparation of a deed, or a simple will. The lawyer knows how
much time and effort it will take. It is also usual to have a
contract where the fee is based on the time spent by the
lawyer and his staff on your case. An example might be the
defense of a suit for breach of contract. The attorney fee
agreement might provide details of the hourly rate for each
person or category of persons in the firm who might work on
the case.
Normally, the attorney
fee charged is determined by the agreement between the client
and the attorney. If no specific agreement was made, the law
assumes that the attorney is entitled to a reasonable fee.
Contingent fees must be
in writing, but it is wise to get all fee agreements in
writing. While there is no requirement that an attorney fee
agreement be in writing, it is wise to get it in writing. It
should spell out the terms of the relationship and specify how
the fee will be determined.
If a dispute does arise,
the lawyers' Rules of Professional Conduct state the factors
used to decide if a fee is reasonable. They are:
1. The time and labor
required, the novelty and difficulty of the case, and the
skill required to perform the legal service properly.
2. The likelihood, if
apparent to the client, that if the lawyer takes a particular
case, it will prevent him from taking other cases.
3. The fee normally
charged in the area for similar services.
4. The amount involved
and the results obtained.
5. Time limitations
imposed by the client or by circumstances.
6. The nature and length
of the professional relationship with the client.
7. The experience,
reputation and ability of the lawyer.
8. Whether the fee is
fixed or contingent.
No single factor
determines what fee is fair and reasonable. How reasonable a
particular attorney fee is must be judged on a case by case
basis using the factors just described.
Sometimes there are
disputes between attorneys and clients over the amount of the
fee. If this happens there are several things you should do.
First, sit down with your attorney and talk about it. Lack of
communication, not the amount of the fee, may be the biggest
problem, and it costs nothing to try
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