Hiring a Lawyer: Agreeing on Fees

Although lawyers will rarely negotiate their fees, you still have a choice in which lawyer to hire. When you have a civil case that needs to be handled by a lawyer, the fees you will owe that lawyer should not displace the amount that you can potentially gain in the law suit.�¯�¿�½

Lawyers are known for unscrupulous behavior regarding fees, and although that is not true of all lawyers or in all circumstances, the notoriety is not unfounded. Some lawyers will charge fees that have not been discussed in advance, or will hit clients with astranomical bills once the case has been concluded. If your monetary awards in the law suit you file are less than the fees you will owe your lawyer, then you really have not won your case at all, unless you are filing the law suit vindictively.

When you first realize that you have a case against an offending party, research lawyers in your area. Many cities have free lawyer locating services that can help you to determine which lawyers will be most helpful to you in the type of case you which to pursue. If not, you can go to websites or the yellow pages in search of an appropriate lawyer.

My advice is to never meet with a lawyer who does not offer a free consultation. Most will offer a free thirty-minute meeting – either over the phone or in person – during which time you can discuss the fees associated with service, and the merits of the case you wish to file.

During that meeting, the following factors should be discussed at length. Make notes about the fees and compare them once you’ve met with several lawyers in order to make the most informed decision.

1. Fee Schedule

Determine right away how the lawyer expects to be paid. Many lawyers bill their clients at random, if and when services are rendered. Some lawyers charge by the hour, while others charge on contingency or with a retainer. Others charge for their services only if and when a case is won.

The fee schedule should play a large part in determining whether or not you hire a lawyer. If he or she expects a large fee in advance, then you might want to consider looking elsewhere. The most favorable arrangements are for those cases which are not charged until after the case is won, which means that you take no risk in hiring the lawyer’s services.

2. Permissable Costs

Permissable costs are costs that the lawyer incurs while working on your case. These fees might include gas, copying,�¯�¿�½ electronic research, travel or other expenses. If the lawyer plans to pass those fees on to you, determine when and how they will be billed.�¯�¿�½

It is completely up to you how you would like to handle permissable costs. It is imperative that you get an agreement in writing, and request in that agreement that you be consulted before the lawyer does anything that will result in a fee to you. Some lawyers do not charge for permissable costs because those fees are incorporated into their retainer or hourly charge.

3. Estimates

Although a lawyer cannot possible determine at the beginning of a case how many hours he or she will spend or how much effort will be involved, you should still be entitled to a ball park estimate. If applicable, request that the lawyer give you a “high-ball” estimate so that you are prepared for every contingency. There is nothing worse than receiving an unexpectedly high bill at the end of the case, without having budgeted for it at the beginning.

4. Itemization

Ask the lawyer how often you will be billed, and how much detail will be included on the invoice. THe lawyer should be willing to itemize each bill so that you, as their client, know exactly what you are paying for. One large lump sum with no detail might indicate that the lawyer is “padding” your bill, which is unethical. If the lawyer does not give itemized invoices, you would be well advised to look elsewhere.

5. Inherent Charges

If your lawyer charges on an hourly basis, you should find out how those hours are billed. For example, will you be billed for an entire hour if you engage in a twenty-minute conversation? And will you also be billed for the work of�¯�¿�½associates, paralegals and administrators?�¯�¿�½

These minute details are often not considered by uneducated clients, and they might get a nasty surprise when the invoice arrives in the mail.

6. Notification

During your meeting, ask if the lawyer will notify you before a certain billing limit is reached. For example, if something is going to cost more than $200.00, will the lawyer call and let you know about the fee? Some lawyers will agree to this practice, while others will not. If you are worried about too many out-of-pocket fees, make sure you are informed about the details of this practice.

Before you hire a lawyer, make sure that all of the fee agreements are included in the contract signed between you and your lawyer. If you don’t understand the language of the contract, ask the lawyer to explain it in detail, or to simplify the language so that you are both clear about the agreement. Signing something that you don’t understand can be an enormous – and very costly – mistake.