Legal Fees You May Not Know About

December 19, 2022
 By Erin H.

According to the United States Courts, in 2020 alone, civil cases increased by 16% while criminal defendant cases grew by 3%. Also, there has been an upsurge in the number of arrests. For example, Texas recorded about 10,742 arrests due to weapons violations in 2021 alone. Such statistics indicate that the need for legal representation is rising steadily, and legal fees may be the most significant concern before hiring representation.

While understanding how lawyers charge is necessary, it can be unclear to a larger audience. However, before approaching any lawyer for representation, you’ll need to know how attorney-client fee agreements are developed to help you ask the right questions. This article will discuss the legal fees you may not know, especially when you’re in trouble for the first time. Keep reading to learn the amount of money you may need to pay for your legal representation.

You might not know the different lawyers’ legal fees, such as contingency fees and hourly and flat rates. In addition to the typical legal costs, you may be required to pay more to cater for expenses associated with your case, such as sending correspondence and filing papers. Often, lawyers may need down payments in the type of a retainer.

Contingency Legal Fees

Contingency legal fees are entirely dependent on success. In this arrangement, when the lawyer wins the case on the client’s behalf, the attorney gets a certain percentage of the money won. When the lawyer losses the case, the client doesn’t pay anything. In such cases, the portion the attorney gets fully depends on the case’s settlement stage. For instance, when the settlement happens before trial, the lawyer will get a smaller percentage because the case did not take up much time, meaning fewer expenses than if the case proceeded to trial. The fees and costs are often deducted from the money recovered before taking the percentage.

Usually, contingency fees are effected primarily on dispute cases, where it’s easy to determine the attorney’s success. Most prevalent cases involve medical malpractices, car accidents, and debt collections. Also, in case of a car accident, be on the right side of the law by ensuring that towing services are paid. They’ll cost you about $75-$125. You’ll need to win the case at any cost. The attorney’s cut may go up to about 33% of the recovered disputed money. Although the amount may seem significantly high, the arrangement usually favors the client, as the amount may be lower than hourly charges. However, many states have laws prohibiting contingency fees in cases such as criminal prosecutions and divorce, for reasons such as public policy.

Referral Fees

In some cases, a lawyer may refer to another lawyer. When this happens, they may ask for a particular percentage of the total fees you will pay for the case. Such fees are known as referral fees. Mostly, referral fees are prohibited by professional responsibility state codes and they have to meet specific known criteria for the arrangement to become acceptable.

Similar to other legal fees, you must agree to such an arrangement. You must also ensure that the legal fees are reasonable. If you are unsure how to determine whether the costs are reasonable, you can refer to your state association for more information and guidance. Additionally, in a democratic country, laws are prone to change. For instance, the Public Policy Institute of California states that peace officers now must be at least 21 years old, changing from 18 years. For this reason, you’ll need to familiarize yourself with any policy changes that may touch on the pricing of legal fees.

Civil and criminal cases are increasing steadily in the US, meaning more people need legal representation daily. Before hiring a lawyer, you’ll need to ensure you have the money to pay your legal fees. Also, it’s equally important to familiarize yourself with legal fees such as referral and contingent fees. What’s more, you must ensure that the legal stipend sounds reasonable.

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