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Types of Attorney Fee Agreements
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We handle many transactions on an
hourly, fixed fee, or contingent basis depending on
the facts of the particular matter. We generally handle personal injury cases on a contingent fee
basis.
There are several types of
attorney fee arrangements:
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"Time based" means a fee
that is determined by the amount of time involved such as so much per
hour, day or week.
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"Fixed" means a fee that is
based on an agreed amount regardless of the time or effort involved or the
result obtained.
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"Contingent" means a
certain agreed percentage or amount that is payable only upon attaining a
recovery regardless of the time or effort involved.
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Written Fee Agreements- law requires
that many types of fee agreements be in writing, and the best practice is
to have all fee agreements written. Payment of costs and fees are due and
payable under the terms of the written fee agreement.
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 | Contingent Fees- Contingent fees often are
the client's key to services. By allowing clients to pay for
legal services out
of the recovery, people who cannot afford to advance an hourly rate are
able to retain experienced and competent lawyers to undertake cases.
Contingent fee agreements must be in writing to be enforceable by either
the lawyer or the client. We
are required by law that our clients be ultimately responsible for any
costs and expenses, further explained below. In this way, the lawyer does not gain an interest in
the litigation.
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Hourly or Flat Fee Agreements- Although personal injury cases
are handled under a
contingent fee agreement, there are certain cases (divorce, real estate,
business arrangements or disputes) that we take on an hourly or fixed fee.
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Representation of children, approval of
fees- In a case where the primary client is a
child, the parent must seek court approval in many situations in order to protect the child. Typically, absent evidence of
over reaching, or a conflict arising between counsel and client, the
probate court will approve the settlements and the fees agreed upon;
however, the parent must understand that the benefit of the settlement
must go to the child and that trusts, or supervised administration may in
order to fully protect the child.
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Expenses- Aside from any attorney fee, there are
always expenses in pursuing any claim. Examples of such expenses are: fees
payable to the court, the cost of serving process, fees charged by expert
witnesses, fees of investigators, fees of court reporters to take and
prepare transcripts of depositions, and expenses involved in preparing
exhibits.
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