Many clients are unsure how lawyers charge for their services. The three most common fee arrangements are contingency fees, hourly billing, and flat fees.
At Jafari Law Group, we explain the proposed fee structure before representation begins so clients understand how fees and costs may be handled.
Contingency Fees
Under a contingency-fee arrangement, the lawyer receives an agreed percentage of the client’s financial recovery. If there is no recovery, the client may not owe attorney fees, depending on the terms of the written agreement.
Contingency fees are common in cases where a client is seeking money from another party, such as certain employment claims.
Clients should understand that case costs may be separate from attorney fees. Filing fees, expert fees, deposition costs, and other expenses may be deducted from a recovery or handled in another way described in the agreement.
Hourly Billing
With hourly billing, the client pays for the time the lawyer and legal team spend working on the matter.
This may include reviewing documents, conducting legal research, communicating with the client or opposing counsel, preparing court filings, and attending hearings or depositions.
Law firms often require an initial deposit before work begins. This deposit is usually not the total cost of the case. The client may need to add more funds as the matter continues.
Hourly billing is common in business disputes, intellectual property matters, employment defense, and cases where the amount of work cannot be predicted at the start.
Flat Fees
A flat fee is a set amount charged for a defined legal service.
A lawyer may charge a flat fee to review a contract, prepare a demand letter, file a trademark application, or complete another limited task.
The client should confirm exactly what the flat fee includes. Work outside the stated scope may require an added fee or a separate agreement.
How Fee Arrangements Are Chosen
The fee arrangement depends on the type of legal matter and the work involved. Some cases may be suited for a contingency fee, while others are better handled through hourly billing or a flat fee.
During the initial consultation, we explain the fee options that may apply and what the proposed arrangement covers. Our goal is to make the process clear so prospective clients understand what to expect before deciding whether to move forward.
Jafari Law Group offers free case evaluations for employment law, business litigation, and intellectual property matters.