In other words, it would be unreasonable for an attorney to charge a client in excess of one-third, unless there are extraordinary circumstances. An excessive contingency fee agreement is not enforceable. One Court explained why: “ [A] fee agreement between lawyer and client is not an ordinary business contract.
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In some cases, after looking at the itemised bill, you may conclude that the total lawyer fees charged are reasonable. However, if you still believe that your lawyer is overcharging you, you should raise this concern with your lawyer.
And even more unhappy when the word “overcharging” is used. It is not good to feel that the person you hired to help you turned out to hurt you in the process.
So if your lawyer starts thinking of you as a client who is constantly griping, haggling and delaying payment, that might unconsciously affect the relationship and possibly even the work in ways you should try to avoid. So how do you deal with the problem without becoming a “problem client.”
What Your Lawyer Should Never Charge You For Under the Legal Profession Act (LPA) and the Legal Profession (Professional Conduct) Rules (LPR), lawyers are not permitted to charge contingency fees. Hence, lawyers are not allowed to accept a “bonus” for winning a case, or peg their fees to the amount awarded to the client in a dispute.
1. Contact your lawyer and request an itemised bill. If you suspect that your lawyer is overcharging you, you should first speak to your lawyer about it. The lawyer may be able to address your concerns such that you do not need to spend further time, energy or money pursuing the matter.
More complex matters such as litigation will usually be charged on an hourly basis. This is because it can be difficult to estimate the effort and time taken to represent a client in a complicated and lengthy trial. In some cases, lawyers may charge an hourly rate, subject to a fee cap.
When you hire a lawyer, the legal fees that lawyers typically charge can be split into two categories: Professional fees; and. Disbursements. Professional fees are fees charged by a lawyer for providing professional legal services, and they can be structured as flat fees or hourly fees.
How lawyers usually bill for work. Generally, firms will request a deposit into a client account before work on the case begins. A portion of the deposit sum may be earmarked for disbursements or professional fees. A bill may be sent to you on a monthly basis for the work undertaken in the previous month.
Under the Legal Profession Act (LPA ) and the Legal Profession (Professional Conduct) Rules (LPR), lawyers are not permitted to charge contingency fees. Hence, lawyers are not allowed to accept a “bonus” for winning a case, or peg their fees to the amount awarded to the client in a dispute.
As mentioned above, the lawyer fees charged must be fair and reasonable. It is important to bear in mind that each set of circumstances is unique. Therefore, whether the fees are fair and reasonable is judged based on several factors which differ depending on whether the fees relate to a contentious or non-contentious matter.
The court can exercise its discretion to reduce the quantum of the lawyer fees. The legal costs will be taxed on an “indemnity basis”, which means that you will have to show that a particular item in the bill was unreasonably incurred and should be removed from the bill.
Some law firms charge as much as 20 or 25 cents per copy, which can really add up if there are thousands of copies. You should push for as little as 10 or 12 cents. Travel time. Most attorneys bill their full hourly rate for time spent in transit for a case.
A simple flat fee (plus expenses), agreed to up front, is often best for the client — because it ensures that the cost won’t go over a certain amount . And lawyers often accept a flat fee for simple matters, such as uncomplicated wills or real estate closings.
Billing for billing. You should not be charged for the time spent compiling your bill or answering questions regarding the bill. Best: Scan your itemized bill for entries related to billing. Try to keep conversations about billing separate from other conversations, and track them in a diary.
Some lawyers claim terms are not at all negotiable, but there usually is some room for flexibility or even creative compromise, assuming that the lawyer wants your business. Example: Offer to pay a certain amount that you both consider reasonable as a guaranteed minimum flat fee for the expected amount of work.