Lawyers' Fees and What You Should Know
 

How Do Lawyers Set Fees?

You are paying for your lawyer to represent you as your advocate as well as to give you advice and guidance based on the lawyer's knowledge, experience, research, study, analysis, and individual work on your legal matter. Part of your lawyer's fee goes to pay for the costs of operating a legal practice such as rent, office staff, equipment, etc.

Lawyers use various ways to decide how to charge for their services that are set out by the Supreme Court of Missouri. The Supreme Court requires that the fees must be reasonable. Your lawyer may depend upon one or more of these methods to set a reasonable fee that will be charged in your case.

• Your lawyer may charge you based on the amount of time and effort that will be necessary on your particular case. In determining the fee, your lawyer may consider whether your legal issue is very difficult or unusual. If so, the fees may be more than would be necessary for a more routine matter.
• If your legal matter is urgent that would cause the lawyer to stop work on other cases, or if it is necessary that your lawyer not take other clients in order to handle your case, the fees may be higher.
• Your lawyer will consider the customary fees charged in your area. A lawyer in a metropolitan area may charge more than a lawyer in a small town.
• In some situations, you may pay your lawyer a fee based on the amount involved in your case or whether your case was won or lost.
• Some lawyers may charge a lower fee if you have been a long term client.
• You may expect to pay more for a lawyer who has a lot of experience, special skills, and who has an excellent reputation in a certain area of the law than a lawyer who is not as well known.
• There are some situations where lawyer's fees are determined by law or by a judge. Some examples are workers' compensation and probate cases.

What Types of Fees Are Charged by Lawyers?

• Hourly Fee - Many lawyers may charge you based on the amount of time it takes to work on your case. It is common practice for your lawyer to ask that you pay an advanced payment or deposit based on the amount of time that your lawyer thinks will be needed in your case. Sometimes this fee is mistakenly referred to as a "retainer" fee and should not be confused with a true retainer fee as explained below. The lawyer is required to deposit this fee into a separate bank account called a trust account. The lawyer cannot withdraw this money until it is earned by working on your case.
• Flat Fee - In some situations, your lawyer may charge a one time fee known as a flat fee to complete the work on your case from beginning to end.
• Contingent Fee - Depending on the type of legal matter, your lawyer may offer to take your case on a contingent basis. In other words, you would only be responsible for paying your lawyer a fee if the case is won or if it is settled before the case goes to court. It is important to know that you may still have to pay your lawyer for necessary expenses even if you lose the case, but the lawyer will not receive fees for working on your case. Most lawyers charge a percentage of the amount won or settled for in the case, which may be a higher amount than if the lawyer billed on a flat fee or hourly basis because the lawyer is taking a risk that s/he may not be paid for their work. These percentages are determined by the amount and difficulty of your case, and how certain the lawyer is that you will win. Percentages can range from 25% to 50% of the amount recovered. Your lawyer is required to put this agreement in a written contract that you will sign. You will receive a copy of the written agreement.
• Retainer Fee - Although the term "retainer" fee is often misused, the correct meaning is that you would pay a lawyer a fee to be available should you have a need in the future for the lawyer's legal services or advice. This type of arrangement is often used by businesses.

Can Your Lawyer Tell in Advance What the Fee Will Be?

For straightforward legal matters like writing a simple will, real estate contracts, traffic cases, or filing an uncomplicated bankruptcy, oftentimes your lawyer will be able to tell you what the fee will be at the start of the matter. These types of cases are usually based on a one-time flat fee.

In an hourly fee arrangement, your lawyer may be able to give you a general idea based on experience as to what the total fee may be based on the circumstances at that time. However, fees can easily vary if the circumstances change, which they often do. Your lawyer should keep you informed about any change in circumstances that would cause the fees to increase significantly.

Will Your Lawyer Talk About Fees?

Your lawyer wants you to be pleased with the service, but s/he does expect to be paid for the service. You should talk with your lawyer about the fee at your first meeting. If your lawyer doesn't discuss fees with you, don't hesitate to bring it up. You have a right to know how the fee will be set. Although your lawyer is only required to offer you a written fee contract in contingency based cases, it is perfectly acceptable to ask for a written fee agreement, and to have it explained to you so that there are no misunderstandings.

How Will You be Billed by Your Lawyer?

Your lawyer should bill you on a regular basis. Most lawyers send out bills monthly, and they should be paid promptly in order for your lawyer to continue to work on your case. If your lawyer doesn't mention when or how often you will be billed, you should ask for that information. If you have paid your lawyer a deposit or advanced payment on fees, the monthly billing should reflect the work done by your lawyer during that billing cycle and the amount of your money taken from the trust account to cover those costs. In some circumstances, your lawyer may ask you to replenish the deposit.

In contingency fee cases when the fee is not due until or if the case is won, your lawyer should send you a bill regularly if expenses are being charged to you.

Where Do You Go If You Need Help Finding a Lawyer?

The best source for finding a lawyer is to ask business acquaintances, friends, and relatives for recommendations based on their personal experience with a lawyer on similar matters.

However, if you need help finding a lawyer, check the free Lawyer Search service on The Missouri Bar web site at www.mobar.org, or call The Missouri Bar Lawyer Referral Service at 573/636-3635.

In St. Louis, call
314/621-6681

In Kansas City, call
816/221-9472

In Springfield, call
417/831-2783

What Sort of Expenses Can You Expect to Pay?

If your case is filed with the Court, you must pay court costs to file the case. Other expenses that you might expect to pay could include costs for depositions (written statements by witnesses that are recorded), costs for medical records, expert witnesses that your lawyer might consult with or who will testify on your behalf if the case goes to court, long distance telephone charges made by your lawyer on your case, copying charges, etc. Your lawyer should explain what expenses you will be charged for.