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How Lawyers Charge For Their Services
Always discuss fully with your attorney exactly how you are being charged fees, costs and expenses before engaging the attorney's services. Be sure you understand all the fees, costs, and expenses involved completely. If you are unsure ...ask. Usually fees are charged on an hourly basis, a fixed fee basis, or a continguent fee basis. You may be required to pay all or part of the estimated or fixed fee in advance, or to maintain an amount on deposit to be applied to fees, or to costs and expenses, or all three. In addition to fees, many legal matters incur costs and expenses for which you, the client, are liable. Payment of legal fees are rarely imposed upon the opposing side in a lawsuit, and only under special circumstances, therefore you must be prepared to bear the financial burden of your own case.
Hourly Charges
Frequently attorneys will provide representation and other services on an hourly basis. The charge based upon the individual attorney's hourly rate is made for time actually expended both in and out of court on behalf of the client. Time which consumed outside of the office is usually charged "portal to portal" including time waiting for the case to be called in court. Usually the attorney keeps track of his time in increments of an hour, for example each 6 minutes is a tenth of an hour. In many cases the attorney's staff, for example associate attorneys, paralegals, and legal assistants, are billed hourly as well but at lesser rates commensurate with their experience and training. To the extent that such staff personnel can perform necessary tasks in your case for the attorney, their use minimizes your overall legal cost. Remember that when you are being charged on an hourly basis, all of the time the attorney or staff spend with you or on your case, including telephone calls, is subject to being billed to you. Use the time wisely. Hourly fees are never continguent upon the outcome of the case.
Fixed Fees
In certain circumstances, attorneys will provide representation and other services for fixed fees. The charge is fixed for a specific task or case, without regard to the time required. For example the preparation of certain documents or representation in some simple legal matters. Fixed fees are never continguent upon the outcome of the case.
Continguent Fees
In certain kinds of cases, attorneys may be willing to provide representation for continguent fee. The charge is a percentage of all monies recovered in the case. If no money is recovered there is no fee. The percentage may very dependent upon the stage of the proceedings in which the monies are recovered. The costs and expenses of the case always remain the responsibility of the client.
In most cases Attorneys require a deposit of funds, held in a special account called a "trust account" to be used for fees at the time the contract for services is executed, as a condition of representation. The amount will be determined by the attorney but usually is all or most of the anticipated fee. The amount will be drawn down as the fees are earned or costs and expenses are incurred, and the attorney may require that the fund periodically be replenished. At the conclusion of the representation, any balance which remains will be returned to the client.
Advanced Cost Deposit
In most cases Attorneys require a deposit of funds, also, held in a special account called a "trust account" to be used for costs and expenses at the time the contract for services is executed, as a condition of representation. The amount will be determined by the attorney and may be combined with or separate from the advanced fee deposit. The amount will be drawn down as the costs and expenses are incurred, and the attorney may require that the fund periodically be replenished. At the conclusion of the representation, any balance which remains will be returned to the client.
Costs
This term generally refers to monies paid directly in connection with the litigation such as court filing fees, court reporter fees and transcript costs, and fees for service of process or subpoenas. Most attorneys include the fees paid to expert witness to appear or testify, or render reports of their opinions as costs.
This term generally is used for monies paid in preparing a case, such as copying and postage, the cost of obtaining documents such as medical records or DMV transcripts, the cost of exhibit preparation, or of investigation, or travel expenses associated with the case.
DISCLAIMER: The information provided on this page is not intended to be legal advice. It is merely background information about legal issues of interest, selected statutes and selected recent cases in the virginia Courts. Any individual legal issue should be discussed directly with a qualified attorney who has been engaged to render an opinion.
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