How Will I Pay For My Car Wreck Laywer?
Lately I’ve received quite a few questions regarding lawyer fees. While there are numerous ways to structure payment of attorney fees, I have highlighted some of the most common below.
A contingency fee means the attorney get a percentage of the total settlement. Contingency fee’s typically range from 25% to 50% of the entire settlement. The fee is usually the first deduction from the overall settlement. For example, if a St. Louis auto collision case settles for $10,000, and the attorney fee is 35%, the attorney will receive the first $3,500 of the settlement. In most Missouri car wreck cases a contingency fee is used. In this type of agreement the attorney usually finances the cost of litigation including medical records fees, filing fees, copying fees, expert witness fee’s, and much more. At the conclusion of the case, the attorney is reimbursed for all expenses out of the settlement.
A flat fee is when the attorney handles a matter for one flat fee. So, if an attorney quotes you $2,000 to handle a case, then this is how much you will pay, regardless of the amount of work the attorney does. If the attorney does two hours of work, he makes a lot of money for two hours of work. If he takes 200 hours to do the work, he is making close to minimum wage. But you always know how much you are going to pay.
Most people are familiar with the concept of paying an attorney by the hour. Typically a retainer ($3,000 to $5,000) is paid up front. As the attorney works on your case, deductions are taken from your retainer on a monthly or quarterly basis. Time is typically rounded up in increments of a quarter or sixth of an hour. Most retainer agreements have a written component detailing how time is computed and when payments will be taken from the retainer. Any portion of the retainer leftover at the conclusion of the case is returned to the client.
A hybrid attorney fee is any combination of the above attorney fees or any other thing you can think of. I’ve heard stories that lawyers accept jewelry and other consumer goods as payment. A more realistic example of a hybrid fee is a flat fee for up to a specified amount of work, and if the case turns out to require more work then an hourly fee will be charged thereafter. Another example is a flat fee with a contingency fee on any settlement, which is typically how social security/disability cases are handled.
This overview covers the major types of attorney fees. While only contingency fee agreements are required to be in writing under Missouri law, it’s always best to have an agreement for legal services in writing. Always make sure you get a copy of the signed attorney-client fee agreement. Most bar associations have attorney fee arbitration programs where clients can attempt to settle disputes with their attorneys over compensation.
