Legal Definitions - attorney's fee

An attorney's fee is the payment a client makes to a lawyer for legal services rendered. These fees compensate the attorney for their time, expertise, and resources used in handling a client's legal matter. The structure of these fees can vary significantly depending on the type of legal work, the complexity of the case, and the agreement between the attorney and client.

Common forms of attorney's fees include:

• Hourly Rate: The attorney charges for the actual time spent working on a case, typically billed in increments (e.g., every six minutes).
• Flat Fee: A fixed amount charged for a specific, well-defined legal service, regardless of the time it takes.
• Contingent Fee: The attorney's payment is a percentage of the financial recovery (e.g., a settlement or court award) the client receives. If the client does not recover any money, the attorney typically receives no fee for their time. This structure is common in personal injury cases.
• Statutory or Court-Approved Fees: In certain types of cases, such as probate (managing an estate after death) or bankruptcy, the fees may be set by law or require approval from a court.

Clients often pay an initial sum called a retainer, which acts as a down payment on future legal services or ensures the attorney's availability. It is standard practice, and often legally required, for attorneys and clients to have a written agreement outlining the fee structure and scope of work before extensive legal services begin.

Generally, each party in a lawsuit is responsible for paying their own attorney's fees. However, there are exceptions where a court might order one party to pay the other's fees, such as when a contract between the parties specifically allows for it, or when a particular law authorizes the award of fees in that type of case.

Examples:

• Ongoing Business Consultation: A small business owner needs regular legal advice for various operational issues, such as reviewing new vendor contracts, ensuring compliance with employment laws, and addressing intellectual property concerns. The attorney charges $350 per hour, and the business receives monthly invoices detailing the time spent on each task. This illustrates an hourly rate attorney's fee, where the payment directly reflects the lawyer's time investment in providing ongoing counsel.

• Simple Real Estate Transaction: A homeowner wants to transfer the title of their property to a family trust. Their attorney offers a fixed price of $800 to prepare and file all the necessary deed transfer documents. This is a flat fee because the client knows the exact cost upfront, regardless of how many hours the attorney spends completing the specific task.

• Personal Injury Lawsuit: A cyclist is severely injured after being hit by a negligent driver and decides to sue for damages including medical expenses, lost wages, and pain and suffering. The attorney agrees to represent the cyclist on a contingent fee basis, meaning they will receive 35% of any settlement or court award obtained. If the case is unsuccessful and no money is recovered, the attorney will not charge for their time. This demonstrates a contingent fee, where the payment is conditional on a successful financial outcome for the client.