Question: How Does an Attorney Bill Clients? What Types of Fees Do Attorneys Charge?
Answer: p>Attorneys bill their clients in several ways.
- By the Hour
Most attorneys charge by the hour for general time spent on your business account. Hourly rates would apply for phone calls, emails (yes, they will charge you for replying to an email), and general research work they engage in or have staff members perform. Most attorneys will charge a minimum of 1/4 hour (15 minutes). - . Flat Fee. For some specific assignments, an attorney may quote you a flat fee. For example, Mario's attorney said she would prepare and submit the documents to register his S corporation in Illinois, for $1000. Any other time, including phone calls and letters, would be billed separately, even if the time was related to the assignment; this is why he was billed for a phone call.
- 2. Retainer. A retainer is a non-refundable amount paid up front which the attorney requires to begin work on a case, usually to take a case to court for you. Usually, the attorney works off the retainer; if it is drawn down to zero, the attorney will ask for an additional retainer. If your attorney asks for a retainer, you can expect to receive a retainer letter explaining the terms and conditions related to this retainer.
- 3. Contingency. Sometimes attorneys will take a case on contingency, which means they get paid only if the case is settled in favor of the client. The attorney then receives a percentage of the settlement. The percentage may increase depending on the size of the settlement; so the attorney has an incentive to get the jury to award a high settlement. Contingency arrangements are most common in personal injury cases, and are not often used in general business litigation.
