Payment

Payment Structure

Hourly Fee

The hourly rate is the most frequently used pricing technique. The lawyer computes the time expended on a given matter and multiples that total by an hourly rate. The total is billed to the client for the lawyer’s fee.

Advantages:

• It is familiar to both law firms and clients
• Rates can be set, quoted, and compared by clients
• Timekeeping systems are in place and automatic

Disadvantages:

• An hourly rate discourages efficiency and better ways to provide legal services at a reasonable cost to clients
• Clients are frequently surprised by the bill because it is difficult for them to know in advance what the total charges will be
• It promotes client resistance to the perceived high cost of legal services

Contingency/Percentage Fee

A contingency/percentage fee may be the best payment arrangement, especially in certain cases in which a plaintiff is seeking a payment. We aren’t paid anything unless we are successful with your case, and then you only pay a percentage of the amount recovered.

Advantages:

• The client pays only in the event of a favorable result
• It encourages efficiency by the lawyer and the firm
• The attorney’s interest is aligned with yours to obtain a resolution in your favor

Disadvantages:

• The law firm assumes the risk of providing services without being paid

Fixed or Flat Fee

A set fee is determined in advance of the engagement of counsel, before the lawyer and the client say yes to the representation. The client is not billed based on how many hours the lawyer expends on the case or what the result is for the client.

Advantages:

• The client knows what the fee will be in advance of the engagement
• Get legal advice from an attorney
• Produced documents are custom-tailored for you

Disadvantages:

• The agreement must be renewed time and time again for continued services

Mixed Fee

The Hourly Fee and the Contingency Fee are mixed, and the client is charged a discounted hourly fee and a discounted contingency percentage. The hourly fee is reduced throughout the case, and at the end of the case, a percentage is taken.

Advantages:

• The client pays reduced fees throughout litigation and a reduced fee if the suit is successful
• The client takes less litigation risk
• The attorney’s interest is aligned with yours to obtain a resolution in your favor

Disadvantages:

• If services are not routine, this can be risky for the lawyer
• There may be an uneven cash flow for the law firm

Retainer

This method sets up a fixed-fee-per-time cycle (frequently monthly) for a designated time period (frequently one year). It is sometimes used as a one-time payment to guarantee the availability of the lawyer or firm at a future date. At other times, the retainer is used as a deposit against future services. When an hourly fee is used, the retainer acts as a minimum billing per month.

Advantages:

• The client does not have to pay by the hour for agreed upon services

Disadvantages

• The retainer agreement is limited as to what services are covered if the fee were computed by the hour
• If the retainer is a minimum fee to guarantee availability, then there is no disadvantage

Accepted Forms of Payment

We accept all forms of payment. Most of our clients pay using a credit card through LawPay. We accept cash, checks, certified checks, money orders, eCheck, etc. Affirm financing is also available for clients who want to pay later.