Legal Definitions - attorney's fees

Attorney's fees refers to 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 representing the client. The structure of these fees can vary significantly, commonly including:

• Hourly fees: The lawyer charges a set rate for each hour spent working on the case.
• Flat fees: A single, fixed amount is charged for a specific legal service, regardless of the time spent.
• Contingent fees: The lawyer receives a percentage of the financial recovery (e.g., settlement or court award) if the case is successful, and typically nothing if it is not.

Here are some examples illustrating attorney's fees:

• Example 1 (Hourly Fee): A small business owner hires an attorney to defend against a complex breach of contract lawsuit. The attorney bills for every hour spent on research, drafting motions, attending court hearings, and communicating with the client throughout the multi-month process.

  Explanation: The total amount the business owner pays the attorney, calculated by multiplying the attorney's hourly rate by the number of hours worked, constitutes the attorney's fees for this litigation.

• Example 2 (Flat Fee): A young couple wants to update their estate plan and hires a lawyer to draft new wills and trusts. The lawyer quotes a single, all-inclusive price for preparing all the necessary documents, regardless of how many hours it takes to complete them.

  Explanation: The agreed-upon fixed price that the couple pays the lawyer for drafting their estate documents is the attorney's fee in this instance.

• Example 3 (Contingent Fee): An individual is injured in a car accident and hires a personal injury lawyer to pursue compensation from the at-fault driver. They agree that the lawyer will receive 33% of any settlement or court award recovered, and if no money is recovered, the lawyer will not charge a fee.

  Explanation: If the lawyer successfully negotiates a $90,000 settlement for the client, the $29,700 (33% of $90,000) that the lawyer receives from that settlement represents the attorney's fees for handling the personal injury claim.