Legal advice can save you time, trouble and money. But hiring a lawyer also comes at a cost. Here’s what to consider before hiring contingency lawyers.
How Lawyers’ Set Fees
Lawyers’ fees are largely unregulated, meaning they can use all sorts of billing practices that favour them, no matter what the result of a case. While a lawyer may not be able to forecast the exact amount of time and effort required for your case at the initial consultation, they should be able to give you a general estimate based upon past experience. Generally, lawyers work with the following types of fees:
- Hourly fee: Lawyers generally charge by the hour. The hourly rate can vary from lawyer to lawyer. To know how much your total bill might be, ask the lawyer to estimate the amount of hours your case will take. Remember that circumstances can change, and your case may take longer to handle than the lawyer expected at the beginning.
- Fixed fee: Most often used for routine legal matters, a lawyer may charge all clients the same set amount to draw up a will or to handle an uncontested divorce. When you agree to a fixed fee, be sure that you know what it does and does not include.Typically, under fixed fee and hourly fee arrangements, the lawyer will also ask for a "retainer,” which is an advance on future legal work. The funds do not belong to the lawyer until the lawyer earns the fee by performing work on the case. Your lawyer should communicate with you regularly and clearly about the work performed and the fees charged.
- Contingency Fee: In a contingency agreement, the lawyer’s fees depend entirely on first recovering damages in the case. This kind of arrangement is often used in accident, personal injury and other similar cases when you are suing someone for money. It means that you will pay the lawyer a certain percentage of the money you receive if you win the case or if you settle the matter out of court. If you lose, the lawyer does not receive a fee.
Either way, you will have to pay any court costs and other expenses related to you case. If you agree to a contingency fee, be sure that the written fee agreement tells what your lawyer’s percentage will be and whether that percentage will be figured before or after other costs are deducted.
Other Costs to Consider
Other costs that might arise in your case include costs for experts, court reports, and investigators. You may also be billed for items such as law office filing fees, postage, courier charges, and travel expenses. These are called disbursements. You can request that certain costs be approved by you in advance.
If your case is strong and involves a situation where damages can be awarded, hiring contingency lawyers lets you proceed without fear of escalating legal costs. Contingency lawyers will scrutinize your claim carefully to gauge its legal merits and likelihood of success before taking it on. A win-win situation for both parties.