Four basic ways that a lawyer charges for services

Most attorneys will provide an initial consultation at little or no charge. This is the time when you explain the services you need and ask the attorney about the fees and charges for services rendered.

Once an agreement is reached, you and your attorney will probably enter into a written agreement that spells out the terms of your working arrangement.

Generally, there are four basic ways that attorneys charge for legal services:

Hourly Charge. Some attorneys establish a fixed hourly rate for their services. Their fee is then computed by multiplying the fixed hourly charge by the number of hours the attorney works on the case. 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 to have explained what complications might arise and what effect the complications would have on your fee. Hourly rates of attorneys will vary depending upon an attorney's experience and the demand for the particular service.

Fixed or Flat Fees. For frequently performed services such as drafting a relatively uncomplicated Will or an uncomplicated real estate transaction, some attorneys charge a fixed or flat rate.

Contingent Fees. In certain types of cases, such as those involving personal injury, collections and workers' compensation, the attorney typically accepts a part of the financial "recovery" as the fee. This is called a contingent fee arrangement. The fee is fixed at a percentage of the recovery, but many attorneys charge an additional percentage if the matter is re-tried or appealed to a higher court. Typically, 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 the court as for example, the handling of an estate. Certain types of cases allow an attorney to request a judge to order an opposing party to pay for legal fees.

 

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.