Attorney

If you are thinking of hiring an Attorney it is important that you discuss the fee structure early on in the process. Although it may be an awkward conversation for you, it is an important one as the type of fee arrangement that you make with your Attorney will significantly affect how much you pay for the services.

Before you approach a law firm think about your budget and your situation.  Is the matter routine or complicated and does it involve specialist advice? You will often be able to negotiate a fixed fee for simple matters but most lawyers will charge an hourly or contingency fee once the case becomes more complicated.

Do some research and find out what range of fees similar attorneys charge. Cold calling law firms and chatting about their Attorney rates is the best way to do this. It will only take 3 to 5 calls before you have a good idea of what the average law firm charges.

Be sure to ask what is included in the Attorney fees and what is excluded. What may appear to be a cheap rate at first could become very expensive once the exclusions are added in and don’t forget to look for value based on experience not just the cheapest price.

Common Attorney fee arrangements include:

Pro bono

Pro bono means "for the public good".  In this instance legal work that benefits the community may be undertaken free of charge. Some government departments or specific law firms provide voluntary services for those that are unable to afford lawyers legal fees.

Fixed fee   

You will be charged an agreed amount for your Attorney to take your case. This usually occurs if your case is simple and routine such as drawing up a will or the preparation of a deed. Be aware though that out of pocket expenses will usually be added to the flat fee. Discuss what else may be excluded from the fee.

Hourly rate

In this scenario your Attorney charge you for each hour that they work on your case. Ask how long they expect your case to take and whether they have worked on this type of case before. A more experienced Attorney will not need to do as much research and this may save you money.

On the other hand a more experienced Attorney will charge a higher rate per hour than a junior lawyer so you need to weigh up the pro's and con's of each. Again, you should ask what is included in the hourly rate as out of pocket expenses will usually be billed on top of the hourly rate.

Contingency fee     

Sometimes your Attorney will offer to handle your case on a contingency basis. This means that you do not pay legal fees unless you win and then the Attorney receives a percentage of your settlement as their fee. If you lose your case, there is no fee to pay. This is useful if you do not have the money to pay a lawyer upfront.

Contingency arrangements are most frequently offered for accident and personal injury litigation. Commercial disputes and criminal cases almost never are.