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Lawyers and clients can negotiate four types of attorneys fees: flat fee, contingent fee, hourly fee, or a contingent-expense fee.
- A flat fee is just that. You pay a set amount for the legal service you have requested. For example, a set amount for an attorney to prepare your will.
- With a contingent fee, the attorney agrees to accept a portion of the recovery as his fee and agrees that if the client does not receive a recovery, there will be no fee.
- An hourly fee is an amount charged by your attorney based on the number of hours it takes your attorney to complete the job.
- A contingency plus expenses fee is an arrangement where the client pays all of the expenses, such as deposition costs, filing fees, expert witness fees, etc., as the case progresses and the attorney s time is on a contingent fee basis. If the client does not win or fails to receive a recovery, the only money the client has expended is expenses. The client owes the attorney no money for his time.
Contingent fees are extremely valuable to many clients in all types of civil litigation including, but not limited to, commercial and personal injury matters. Not everyone can afford to pay an attorney an hourly rate to represent them. The contingent fee serves several very valuable purposes: - It discourages frivolous lawsuits and promotes efficiency by motivating lawyers to make sure their cases have merit and their clients have legitimate claims.
- It gives everyone, regardless of their race, color, religion or economic status, equal access to the justice system. Individuals with limited assets can prosecute claims against even the richest and most powerful corporations and entities who often have unlimited money for legal defense. There is no cost to the client unless the attorney wins or makes a recovery. It also motivates the attorney to work hard on behalf of his or her client.
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