How lawyers set fees
Before hiring a lawyer, you should obtain information on how he or she charges for the service.
Fees will depend upon the circumstances of the case and the time required to represent you, as well as other considerations. A lawyer may not be able to advise you in advance of the exact amount but instead will provide you with a fee estimate.
Many lawyers will offer a free consultation or will charge a nominal fee for an initial consultation. Thereafter, they will usually charge for their services in the following ways:
Hourly Charge: Some attorneys establish a fixed hourly charge for their services. The fee is computed by multiplying this fixed hourly charge by the number of hours the attorney has spent working for you. The attorney then adds direct out-of-pocket expenses such as court filing costs, long distance telephone charges, transportation costs, photocopy charges and the like.
When retaining an attorney on this basis, you may wish to ask for an estimate of the charge for the requested service and have explained to you what complications may arise that would have an impact on the fee. An attorney's hourly rate varies depending upon his or her experience and the demand for the particular service.
Fixed or Flat Fees: For frequently performed services, such as drafting an uncomplicated will or assisting with an uncomplicated real estate transaction, some attorneys charge a fixed or flat rate.
Contingent Fees: In certain types of cases, such as personal injury, collections and workers' compensation, the attorney representing a person accepts a part of the recovery as the fee. This is called a contingent fee arrangement. The fee is generally fixed at a percentage of the recovery, but many attorneys charge an additional percentage if the case is tried more than once or appealed to a higher court.
Usually, the attorney does not receive a fee when a contingent fee action is unsuccessful, but the client is expected to reimburse the attorney for out-of-pocket expenses such as court filing costs, transportation costs, investigation costs, and fees paid to witnesses. If the client wins the lawsuit, the same expenses are deducted from the client's share of the recovery.
Fees Set By a Judge: In some cases, the attorney's fee is set by a court judge. An example is a fee set by a judge for the handling of an estate. In addition, certain types of cases allow an attorney to request a judge to order an opposing party to pay for your legal fees.
Regardless of the type of fee arrangement, it is important that the client have the fee arrangement fully explained by the attorney and put in writing. Fee arrangements should be negotiated and agreed to between the attorney and the client prior to any legal services rendered.
Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.
© Illinois State Bar Association
If you have questions about the application of the law in a particular case, consult your lawyer. The law is constantly changing. Information on this site or any site to which we link does not constitute legal advice.