Full Answer
Even If You Have Already Paid Your Lawyer, You May Be Entitled to Get Your Money Back Fee disputes occasionally arise after the client has either (1) advanced money in anticipation of services to be rendered (often called a “retainer” or “advance”) or (2) tendered full payment for legal services already rendered.
When you give your attorney money -- or when your attorney obtains money on your behalf -- that transaction comes with legal and ethical obligations.
If you need to come up with the money to pay for a lawyer, here’s how to finance the costs. Credit cards are an option as you can charge the costs upfront and then slowly pay off your balance over time.
If the lawyer/client relationship is terminated by either party, or the lawyer’s services are completed before the advance is exhausted, the lawyer must refund the balance promptly to the client. If a fee dispute arises over money held in trust, lawyers should freeze the disputed funds in the trust account pending resolution of the dispute.
Where money has been advanced in anticipation of future services, the lawyer is usually required to keep the money in a client trust account. The trust account money is considered property of the client in most jurisdictions. The lawyer has a right to withdraw the money after the fees are “earned” by the lawyer.
If your lawyer is unwilling to discuss the bills, you should put your concerns in writing, and consider ending the relationship.
Lawyers frequently try to coerce payment by asserting an “attorneys’ lien” on all or part of a former client’s case file pending receipt of payment. Depending on whether the case or transaction is over, this can leave the client in the unenviable position of having to pay the fee to get much-needed papers for an ongoing legal matter. However, in practice a client operating in good faith has little to fear. If the client has a need for the documents in an ongoing matter, and a good faith basis for not paying a portion of the fee, lawyers cannot withhold critical papers. Even after the attorney-client relationship is over, the lawyer has a duty to assist in an orderly transition to replacement counsel to minimize prejudice to his former client.
Lawyers will often refer to agreements they have with clients, typically drafted by the lawyer at the beginning of the engagement, as evidence that a client agreed to certain payment terms. For example, there may be agreement as to hourly rates, staffing, or contemplated courses of action.
The downside of not raising billing concerns with your lawyer is substantial. You lose the chance to obtain a mutually-agreed upon reduction. The billing practice that offends you will no doubt continue. Finally, if the fee dispute ever gets litigated or arbitrated, your lawyer will claim that you consented to the disputed billing practice.
Despite this, lawyers often tell their clients they are entitled to a “bonus” over the agreed-upon fee because the matter has become more difficult than expected or because of an unexpectedly favorable result. It is common for such a lawyer to “negotiate” the increased fee in the middle of an engagement.
There are steps you can take both during and after the engagement to communicate your concerns to your lawyer. Appropriate questioning of bills often leads to a mutually-agreed upon reduction, and can even strengthen the attorney-client relationship. Should all else fail, fee dispute litigation provides substantial relief from some relatively common examples of attorney overbilling, while protecting an attorney’s right to a reasonable fee. Ten points for clients to consider:
Before agreeing to pay the retainer fee, tell the lawyer that you want an assessment of your case. Let him or her know that you do not wish to waste money on a case that you have very little chance of winning.
This means that the attorney will not receive his or her legal fees unless you win or settle your case. Additionally, some attorneys are willing to bill clients at a certain rate up to a maximum amount. This way, you will only be required to pay a certain amount even if the attorney spends additional time on your case.
If the attorney is asking for a large sum of money upfront, you may feel comfortable seeking legal advice from a different attorney. Not all attorneys will charge a high retainer fee. Additionally, the hourly fee that attorneys charge may be different for different attorneys and different firms.
As a matter of internal policy, a lawyer may request a retainer fee before agreeing to accept your case or complete any work on it. However, you do not have to pay such a fee if you are not comfortable with the idea.
There are four basic ways lawyers get paid: an hourly fee, a retainer, a flat fee, and a contingency fee. Here’s a closer look at each of the payment types.
For example, if an attorney takes a client’s phone call and the call lasts 10 minutes, the lawyer will bill 12 minutes or 2/10 of an hour for a total of $50 for that phone call.”
Approval for a credit card will depend on your creditworthiness. Lenders will check your credit report to determine if they will extend a credit line to you. If they do, it will also determine the amount of the credit line you get, and your annual percentage rate (APR), which determines how much you pay in interest each year. Remember, the lower the APR, the better. Low APR means you pay less in intered on any unpaid balance each month.
A simple misdemeanor defense may cost no more than $1,000, while a major felony charge could cost tens of thousands,” says Earley. Constantini answers along the same lines saying, “A misdemeanor charge has degrees of seriousness and is charged accordingly; the retainer can range from $1,500 to $5,000.
In summary, the key factors that impact the price are location, case type, case complexity, law office type, and the experience, education, and expertise of the lawyer. Further, you’ll have to contact lawyers to find out what they charge.
If you are denied a credit card, that means the bank deemed your credit unworthy of an unsecured loan. Try building your credit score over time by making on-time payments, paying your bill in full, and not opening too many credit cards.
For example, if a second-year lawyer is working on a matter, that lawyer may charge $275 an hour.
Law Practice Magazine is a publication of the ABA Law Practice Division.
But the legal industry has been slow to adopt these methods – even long-established ones like credit card processing, ACH and eChecks, which are only offered as options by 62 percent of large and midsized firms. The slow adoption is especially surprising considering that the ABA since 1974 has approved credit cards as acceptable payment for fees.
Usually yes, though it depends on the language of the agreement. Just last week a NY court refused to allow an attroney to get off of a case because the client would not pay the costs of the litigation.
Usually yes, though it depends on the language of the agreement. Just last week a NY court refused to allow an attroney to get off of a case because the client would not pay the costs of the litigation.
Sixty days is a reasonable period of time. I suggest you contact your lawyer both via telephone and in writing requesting the money held in escrow be released. If he refuses to give you a reason why it's being held and does not release the funds to you then consider filing a grievance. As far as interest, I suspect the money was placed in a non interest bearing account as lawyer escrow accounts are typically non interest bearing accounts.
Sixty days is a reasonable period of time. I suggest you contact your lawyer both via telephone and in writing requesting the money held in escrow be released. If he refuses to give you a reason why it's being held and does not release the funds to you then consider filing a grievance.
If you are not satisfied with your attorney's response, or, if you do not get a response, then you should speak with new counsel about your legal options.
This communication is intended only to provide general information. No attorney-client relationship is created.
This is an informal process in which both the attorney and client present their positions before a neutral third party who decides the matter for them. Alternatively, you can file a claim for money due in court. Depending on the amount at issue, small claims court might be a good option. If the amount in question is large, consider retaining another lawyer to advise you.
It is important to read and understand the fee agreement that you sign with your attorney before he begins working on your behalf. You'll also need to read it when you are ending the relationship. It holds the key to determining whether your lawyer owes you money.
Just like some marriages end in divorce, some attorney/client relationships flounder. Since a client always has the right to fire her lawyer, ending the relationship is easy; figuring out the finances can be more difficult. Whether you are entitled to a refund, and size of that refund, depends on the type of fee agreement you signed with the attorney.
It’s reasonable to expect an accounting of the financial side of your case within 30 days of the end of the attorney-client relationship, so if you don’t have it by then, ask your attorney for a detailed accounting, and make sure to put the request in writing.
If you request arbitration to resolve a fee dispute, you may notice that your attorney suddenly seems very motivated to resolve the matter before your scheduled arbitration hearing. Once the attorney calculates how much time and money will be spent on arbitration, he or she may decide that it's a smart business decision to simply settle the dispute.
All states adhere to the following principle where this aspect of the attorney-client relationship is concerned: Representation fees paid to a lawyer in advance (whether that money is described as a retainer, a deposit, or something else) belong to the client until the lawyer actually does the work to earn the money.
If you disagree with the final accounting, and especially if you think you’re owed a refund, you should first contact the attorney, explain why you think you were overcharged, and attempt to amicably resolve the dispute. Again, be sure to document the details of any dispute or demand in writing, whether as part of a letter to your attorney, or as a “memorandum” to yourself.
All states adhere to the following principle where this aspect of the attorney-client relationship is concerned: Representation fees paid to a lawyer in advance (whether that money is described as a retainer, a deposit, or something else) belong to the client until the lawyer actually does the work to earn the money. If the work is not performed -- regardless of the reason for non-performance -- then the lawyer owes the client a refund.
Pre-settlement funding allows you to borrow against your expected settlement before your case is resolved. With a pre-settlement cash advance, you can secure funding for food, bills, and housing that may be slower to come as you recover.
Your lawyer can’t loan you money, but Legal Capital Corp. Can. Call us today to learn more.
In most cases, if you do not win a settlement or verdict, you are not required to pay the attorney for this time. You may still be accountable for court fees and other expenses not related to attorney hours.
Can My Attorney Give Me a Loan? Your attorney cannot give you money in the form of a loan. Your attorney can, however, advance funds for court fees, deposition expenses, and related fees as part of the contingency agreement.
The American Bar Association prohibits lawyers from subsidizing “ lawsuits or administrative proceedings brought on behalf of their clients, including making or guaranteeing loans to their clients for living expenses ” among other things. This can leave many victims of serious injury in a tough position when it comes to making ends meet as they struggle to recover.