Contingency Fee
Many lawyers use contingency fee agreements in complex litigation cases that require more resources than the client can afford to cover.
With this alternative, you pay minimal to no money upfront. Your lawyer is paid a percentage of the settlement once the case is resolved.
Hybrid Fee
A hybrid fee structure is when a portion of your legal fees is based on a contingency agreement, and the remainder is paid at a fixed hourly rate. With this option, you may be required to pay all case expenses as they are incurred.
Flat Fee
Flat rate fees are common in transactional matters, such as business formations, contract preparations, wills, and real estate deals.
Generally, a lawyer will propose a flat rate for the services you need, and ask you to pay all or a portion of the fee before he starts working on your case.
Under this structure, you will likely have to pay for various case expenses, including court filing fees, in addition to the proposed rate.
Retainer Fee
Having an attorney on retainer basically means you pay a fee upfront to cover legal expenses incurred during a certain period of time.
Retainer fees are usually paid monthly and are non-refundable. As legal services are performed on your company’s behalf, time (or money) is deducted from the retainer.
Fixed Hourly Rate
Most business lawyers provide legal assistance based on a fixed hourly rate. They track the time spent representing your business.
This includes the time it takes to draft legal documents, place calls and send emails on your behalf, develop case strategies, and make court appearances.
A lawyer’s rate can range from $250 to $850 per hour or more, depending on the complexity of the case, his experience, and the extent of legal services needed.
You can expect an invoice each month that breaks down all services performed, the time it took to complete the work, and the balance you owe.
Before you sign another billable hour contract, give our business lawyers a call at 954-779-7009 and ask about the alternative fee structures we offer.
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Tags: attorney fee arrangement, contingency, fee structures, fixed hourly rate, flat rate
