How Do Lawyers Get Paid?

If you’re facing legal trouble, the prospect of paying a lawyer may be adding to your stress. That’s because lawyers have a reputation for charging exorbitant fees for their services that leave many of us feeling like we can’t afford their professional advice or representation.

In actuality, lawyers’ fees can be structured in a number of ways, some of which are intended to create greater access to justice. Depending on the type of representation required and the complexity of the issues involved, you may be able to hire a lawyer with a flexible payment structure that works for you.

Let’s take a look at the more common ways in which lawyers Edmonton Alberta are paid. To find out what options you have, it’s always recommended that you call a reputable lawyer in your area to find out more about your specific circumstances.

Hourly rate

We’re all familiar with the idea of an hourly rate, as it’s how many of us are paid for our work. This is also a common way for lawyers to be compensated, although sometimes they may even bill down to the minute.

Hourly rates vary and depend on experience, reputation, and the market in which the lawyer operates. They may also reflect expenses like office overhead.

This way of being paid is often employed when a lawyer can’t accurately predict what will be involved. Instead, work will be tracked and you’ll be regularly billed for services. The time a lawyer spends on a file depends on both experience and the complexity of the issues involved, meaning that the amount you’ll pay can vary widely. You should discuss your expectations upfront and be clear about how much you can afford.

An hourly rate is often used for criminal defence cases, frequently in combination with a retainer (discussed below).

Flat or fixed fee

Some lawyers charge a flat fee to provide a specific service. This is often the case for will preparation or completing a real estate transaction. Flat fees typically apply in cases where there’s a clear expectation of what’s involved and how much time will be spent on your file.

You may be able to negotiate a flat flee or work within a fixed range, depending on the level of complexity involved. For instance, simply completing a basic will using a template is relatively easy compared to bequeathing personal possessions to numerous family members.

Flat fees are also sometimes blended with hourly rates, such that the more predictable aspects of your case are covered by a flat fee but you could be billed hourly for other issues. If unexpected complexities arise, you may expect to pay an additional fee on top of the original flat fee in some circumstances.

Contingency fee

Contingency fee models are most often employed by personal injury lawyers Edmonton. This payment plan involves giving your lawyer a percentage of the outcome of your case, whether it’s a settlement or an award resulting from a court ruling. If you receive nothing, your lawyer may not be paid at all, or may receive some agreed-upon nominal flat fee.

While contingency fees aren’t always possible and can’t be applied in certain cases like criminal or family law matters, they do play an important role in the legal system. That’s because they allow people to get legal advice without having to provide funds upfront, which is often cost-prohibitive. Thus, contingency fees allow for greater access to justice.

From a lawyer’s perspective, being paid by contingency fee is risky, because they may not get paid for hours of work that could total thousands of dollars in lost income. That’s why personal injury lawyers typically offer free consultations, to enable them to assess your case and the probability of securing compensation (and thus getting paid). Since contingency fees usually amount to about one-third of the award, taking just a few good cases yearly might earn a lawyer sufficient income.

If you enter a contingency fee agreement, you should make sure you get it in writing. Determine how it will be calculated, and who is responsible for payment of taxes and disbursements (expenses like court filing fees, medical reports, and expert testimony). Lawyers should never be paid more in fees than their client recovers, and contingency fees may be subject to court review.

Retainer

Most of us have heard the term ‘retainer’ from watching legal thrillers. This is when a fee is paid upfront to a lawyer to secure future services. While some wealthy clients may maintain a lawyer on retainer for general counsel, it’s more often employed in cases of criminal defence.

A retainer is usually held in a trust account and can be used in various ways. It may cover costs for disbursements, or may be held to cover unexpected future costs or the final bill for services. Your lawyer may continue to bill you regularly, or may withdraw payment from the retainer and send you an invoice.

When hiring a lawyer, it’s important to understand how you will pay for services. You may be able to negotiate or use various methods to create more financial flexibility and access to justice. Importantly, not all lawyers charge the same rates and some may offer payment plans that will enable you to secure representation affordably.

The first step in finding out how much a lawyer will cost is contacting a law firm in your area who specializes in the kind of legal advice you’re seeking. You may be able to book a free consultation or make an appointment to discuss your options before entering any financial contract. If you need legal advice, finding the right lawyer with a payment option you can afford may prove priceless in the long run, and thankfully, there are lots of options out there from which to choose.