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HOW LAWYERS CHARGE
Many people who need legal help are
reluctant to see a lawyer because they are afraid that legal services
are expensive. Actually, in many cases fees are moderate in comparison
with the benefits gained or the losses avoided. It often turns out
to be more expensive tin the long run not to see a lawyer. When
you consult the lawyer in person, ask at the outset about fees.
It is in the best interest of both the lawyer and the client to
have a clear understanding of the fee for the lawyer's services
in advance so there will be no misunderstanding later.
TIME
A lawyer's only stock-in-trade is time and advice.
There are three basic types of
fees for legal services:
- Hourly Fee: In some cases, particularly
civil litigation and contested domestic matters, the lawyer will
charge an hourly fee. The lawyer will keep accurate time sheets
describing the time spent on your case.
- Contingency Fee: In certain other
cases, lawyers charge a contingency fee, where an agreement is
made with the client in advance that the lawyer will get, as a
fee, a percentage of the amount recovered after certain expenses
are deducted. In this case, the lawyer is paid only if the client
wins the case. In most cases, the client will be responsible for
the costs regardless of the court decision. This is most commonly
see in personal injury cases.
- Flat Fee: The flat fee is where
the lawyer has a set fee for the service to be provided, regardless
of the time involved. Flat fees are commonly used in defense of
criminal charges, some civil cases, and routine matters such as
uncontested domestic matters, preparation of simple wills, deeds,
and other similar documents.
No two situations are alike. A lawyer will consider
many of the following factors in arriving at a fair fee:
Other issues may be considered in setting fees:
novelty and difficulty of the problem, amount of responsibility
assumed by the attorney, custom in the geographical area, and preclusion
of other employment during a particular case.
Are there any restrictions on a contingency
fee?
Yes. A lawyer may not charge a contingency fee
in a criminal case where the fee depends upon the outcome. Likewise,
a lawyer may not charge a contingency fee in a contested domestic
relations matter. Public policy dictates that a lawyer's fee not
be dependent upon securing a divorce, the amount of alimony or child
support ultimately awarded.
Must the lawyer/client fee agreement be in writing?
In Nevada, a contingent fee agreement must be in writing
and must state the method by which the fee is to be determined,
including the percentage of the recovery and whether expenses are
to be deducted before or after the contingent fee in calculated.
Ask your lawyer to explain what expenses will be charged and when
the client's costs are to be paid. Obtaining a written fee agreement
in advance is in the best interest of the client, so that there
will be a written record in the event that there is a dispute later
about the lawyer/client relationship.
What is a retainer?
A retainer is the initial fee paid by the client to begin
representation on a particular matter. The lawyer and client should
have a firm understanding of exactly what is contemplated and covered
by that initial retainer. Your lawyer is required to place these
retainers in a special account called a trust account, against which
your legal matter will be billed until completed. If the retainer
is insufficient, the attorney may ask for additional funds to be
used in the same manner. Likewise, unused funds at the end of the
legal matter remain the property of the client and should be reimbursed
to the client after all expenses are paid.
What are "costs"?
A lawyer must spend money to file papers with the Court, to
hire other persons such as court reporters or investigators, etc.
These expenses are known as costs and are normally paid by the client
in addition to the lawyer's fees. Costs are in addition to the attorney's
bill for his or her time and effort.
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