Legal fees can be confusing, but understanding how attorneys charge for their services is essential if you are looking to hire an attorney. If you’re in California and wondering about attorney fees, this article breaks down the basics in simple terms so you can understand the different ways Attorneys can charge for your services.
Flat Fees
Sometimes, attorneys charge a set amount for the whole legal job. This is common for things like estate planning or other transactional type of work. You’ll know exactly how much you’re paying upfront, with no surprises later on.
Hourly Fees
Some attorneys charge by the hour. This means they bill you for every hour they work on your case. You’ll know upfront what their hourly rate is. Keep an eye out for extra costs, like paralegal hourly fees, which might also apply. Make sure to read and understand the agreement before signing, so you’re not surprised later. The Attorney must give you a fee agreement listing the exact hourly rates for each person in their office. There may be an upfront fee, called a “retainer” you have to pay up front. For example, you may need to pay $5,000 retainer which goes into a special account called a trust account. Each month, the attorney will let you know how much time they spent working on your case and then remove that amount from your retainer amount that is in your trust account.
Keep in mind when you pay a retainer, the money goes into a special account until the lawyer earns it by working on your case. This protects your money and ensures it’s only used for your legal fees. Lawyers have to follow strict rules about these accounts. This account is referred as IOLTA or Client Trust Accounts.
Contingency Fees
For some cases, like personal injury claims, attorneys only get paid if they win your case. Their payment is dependent on the outcome of the case. They’ll take a percentage of your settlement or court award at the end of the case. This percentage has to be given to you in writing in a fee agreement. They must give you this agreement in writing, so you know what to expect. Be aware that the agreement may also say the percentage changes or goes up if the case goes to trial. There are strict rules that attorneys must follow.
Understanding attorney fees doesn’t have to be complicated. Whether you’re paying by the hour, on contingency, or a flat fee, clarity is key. By knowing the basics, you can make informed decisions about your legal representation in California.
