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This page gives you a brief overview of what Lawyers do and how they get paid. Lawyers perform a variety of services for their clients. Listed below are some of the different types of services you should expect from your attorney.
The element of Advice and Counsel will be a constant throughout your relationship with your attorney. Use your lawyer effectively. He or she can be an incredible resource in the furtherance of your business, your professional life, and resolving legal issues in your personal life.
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Should you find yourself in the unhappy situation of being sued, do not delay in contacting an attorney for advice. Litigation is time-sensitive and undue delay may result in a default judgment against you. |
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How Do Lawyers Get Paid? |
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Most often Lawyers are paid for their services based on an hourly rate. In New York, hourly rates can range from $250.00 to $500.00 or more. People who have not had experience with attorneys before may be surprised at the hourly rates and may be reluctant to hire a lawyer. Unfortunately, that kind of thinking can cost the client thousands of dollars later on. Below are some different payment arrangements that may be made with lawyers. |
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As the attorney spends time on the client’s case, the attorney’s time is charged against the retainer paid. For example, if the retainer amount is $3,500.00, the attorney’s hourly fee is $250.00, and the attorney works four (4) hours on the matter the first day, the client’s account will have a balance of $2,500.00 remaining ($250.00 x 4 = $1,000.00; $3,500.00 less $1,000.00 = $2,500.00). If the matter is resolved before the retainer is depleted, the client may be due a refund. If the matter is not resolved before the retainer is depleted, the client will likely be required to pay a further retainer. |
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Other Arrangements - In some instances other arrangements may be made depending upon the type of case and the attorney. If you cannot pay a full retainer fee up front, ask if you can pay it in two or three installments. Be creative, but be fair. When you spend your money, spend it wisely. Good advice early on will be worth many times its value later. Most importantly, talk to your attorney. Understand the services he or she will be performing for you and use those services (particularly the advice and counsel services) to your advantage. Your dollars will have been well spent. |
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Rosemarie Tully, P.C. |
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Advice and Counsel - Whether you’re a business
person or an individual, your relationship with your lawyer must be one of respect, trust, and communication. You are paying your lawyer to advise and counsel you in
making business decisions, and, sometimes, difficult personal decisions. The most important element in making any business or personal decision that may have
legal ramifications is that you consult your lawyer before finalizing your position or committing to anything, and certainly before signing anything. Your lawyer can best assist you when he or she is
involved in the decision-making process.
Drafting - Concise drafting of effective legal documents,
agreements, letters, etc., result in great benefit to the client in protecting his or her position and is cost-effective in the long run. Many situations involving legal consequences can be handled
effectively when the situation begins to unfold. This is when good negotiating and drafting skills of your attorney are very valuable. They can forestall a lawsuit, which can be quite costly.
Contract Negotiation - It is essential to obtain the
advice and counsel of your attorney in any situation where you will be committing yourself to perform under a contract or agreement. Examples of such contracts are:
employment contracts, real estate purchase or sale, production contracts, record deal contracts, releases, location agreements, etc. Attorneys are trained to spot
problems and issues and resolve them. It is important to know your rights and obligations before you make any commitments, orally or in writing. Let your attorney
point out these and many other issues and possibilities to you so that when you do commit you do so only when the deal is right for you.
Litigation Representation - Should you find yourself in a
position where you need to sue someone or some business to protect your rights, only your lawyer can effectively represent you in court. The process of a lawsuit is known as
“litigation.” Some people attempt to represent themselves in lawsuits, however, unless it is in Small Claims court, it is not a good idea. Even lawyers themselves rely on the old adage,
“he who represents himself has a fool for a client.”
Hourly Charge Against Retainer - This is the most common
arrangement as often times an attorney cannot tell a client how much a particular matter will cost in terms of attorney services. Because the attorney cannot predict what the party on the other side of the matter
will do, he or she cannot determine how much time will be required to resolve the case. Additionally, even after a lengthy interview with the client, the
attorney cannot foretell how the case will ultimately unfold. He or she will have to handle issues as they arise. Thus, in most cases, the attorney will require a set fee
paid up front before he or she does any work on the matter. This fee may be based on the minimum number of hours the attorney anticipates the matter will require
(provided all goes smoothly), or it may be the minimum fee for which the attorney agrees to take on the case.
Flat Fee - Sometimes matters lend themselves to a flat
fee arrangement. Examples of such matters are: residential real estate purchase or sale; review of a contract (not including negotiation of that contract); drafting
of a will; incorporating a business, etc. In this situation, the attorney gives the client a fixed price to do the work regardless of the hours the
attorney spends on the matter. Often in real estate matters this is a tremendous bargain for the client, as the attorney is likely to put in hours far exceeding the value of the flat fee.
Contingency Fee - This is most often the case in liability matters.
With a contingency fee the attorney may take an up-front fee from the client, similar to a retainer, but the client will not be charged anything
further for the attorney’s services until the case is decided. If the case is decided in favor of the client and the client is due monies from the
other side, the attorney will receive usually one-third of those monies. Should the case not be decided in favor of the client, no further fees for
the attorneys services are due from the client. It is important to understand that there may be costs associated with the client’s case (other than the attorney’s
services) for which the client will have to pay. Examples of these are depositions, court fees, expert witness fees, messenger fees, etc.