How to Negotiate Legal Fees
- 1). Contact several attorneys before making a decision, as the initial consultation is often free. Ask if the consultation is free when you make an appointment. Get an hourly rate, contingency rate or fixed fee rate from each attorney. The type of fee often depends on the kind of case. A will may be prepared at a fixed fee, a personal injury case may require a contingency fee and attorneys bill many other legal services at an hourly rate. Make notes at the time of the discussion and prepare to negotiate and comparison shop.
- 2). Ask questions. Try to negotiate a contingency fee or a fixed rate. Attorneys charge contingency fees when a recovery is expected, and fees may run as high as 50 percent, plus expenses. Try to get a 25-percent contract with a cap on expenses for a contingency case. A fixed rate is the best choice, since you know the cost at the outset. It may also include expenses, so be sure to discuss the expenses and the total. If an hourly rate is charged, ask about the minimum time charge. Attorneys who bill in 15-minute intervals charge 15 minutes for every telephone call, every letter that arrives and every piece of paper reviewed. An attorney who charges 1/10 of an hour bills in six-minute intervals, and overall, the charges should be less. Discuss this openly with the attorney and ask for a lesser rate.
- 3). Find out who is going to do the work. If a legal assistant or young lawyer does the work, you will probably pay the same rate as the senior attorney, with more time expended. You are paying to train the employees unless you negotiate a fee for legal assistants and junior attorneys. You may also want to negotiate a fee for research, since this can add hours to a bill.
- 4). Make the job easier for the attorney by doing the legwork. Make a time line of events or a chronology. Prepare a presentation of the facts before the initial consultation and make an organized file with documentation. Locate information and witnesses for the attorney, and do whatever you can to help. Be sure the attorney is receptive to your help and negotiate this at the initial conference. The time you spend will save you money.
- 5). Make an agreement about billing and payment of the bill. Ask for monthly or quarterly billing so you can watch the charges and expenses in a time frame you can recall. Many attorneys require an escrow deposit for taking a case, and they draw from that deposit for their fees and expenses. Make sure that you negotiate this retainer fee and get a copy of the bill even if you have a deposit on file.
- 6). Get it in writing. Once you decide which attorney to use for the legal issue, have her prepare a contract with the fee agreement you have negotiated. Make sure the attorney signs the agreement and that you get a copy for your file.
- 7). Keep accurate private records. Start a notebook for keeping records about the case. Write down every contact with the attorney and the date, the length of time spent, and the purpose for the contact. Start a file with the fee agreement and keep copies of all correspondence and pleadings as well as any information you provide to the attorney. If the case is involved, you will appreciate that you negotiated the fees at the outset and that you kept accurate records.
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