Staffing and overhead costs. Someone needs to pay the secretary, the receptionist, the paralegal, and the rent/utilities/other office expenses. Law firms only make money from the work attorneys do, so everyone else in the office, and the office itself, relies on an attorney billings.Mar 20, 2013
You need a law degree. You must pass the bar exam. These are huge hurdles to overcome and take years to do so. Since the number of lawyers is restricted, basic supply and demand results in lawyers being able to charge more money.
Yes. Repeated industry surveys confirm that lawyers, particularly young lawyers, are increasingly unhappy. More concerning are growing numbers of lawyers suffering from severe anxiety, depression, stress and substance abuse problems.
You can pay anywhere from $50 to thousands per hour. Smaller towns and cities generally cost less while heavily populated, urban areas are most expensive. The more complicated the case and the more experienced the attorney, the more you'll pay. Lawyer fees can range from $255 to $520 per hour.
Put simply, lawyers are so expensive because the financial and other costs of practicing law are enormous. Many of these costs are due to the onerous regulation of the profession. The costs of legal practice inevitably must be passed onto the legal consumer, ie the client.
The main reason legal fees are so high is because it costs a lot of money to lawfully run and operate a law firm. Law firms incur all of the costs normally associated with operating an office (rent, wages, photocopy leases, furniture, power, stationary, paper, ink, tax etc).
Professional indemnity insurance – this is liability insurance that all law practices are required to have. The costs of this depends on the size of the practice, but it is invariably expensive. This insurance is ultimately to the clients’ benefit, as it ensures that in cases where lawyers make mistakes, clients can be compensated for this.
The professional fees charged by lawyers are notorious. When many clients earn an average of $20-40 per hour, it can seem unfair that your lawyers charge you hundreds of dollars per hour. However, as this article will demonstrate, there are reasons why legal fees are so high.
Examples of trust monies include funds used for paying house deposits or outlays, and monies paid upfront by clients or third party payers on account of the firm’s professional fees. Firms have to pay for annual external audits of their trust accounts, which usually cost a minimum of $1,500.
Being a lawyer is one of the most demanding occupations. Lawyers have to negotiate competing demands placed on them by their clients, the courts, their employers, disciplinary bodies and their families. Some clients are difficult or have unrealistic expectations, and this ensures that they walk away unhappy with their lawyer, even when their lawyer has done an OK job.
Before being able to practice law, they must be admitted to the legal profession. This is an expensive and time-consuming process which involves paying a large fee to the Legal Admissions Board, and filing an application and affidavit in the Supreme Court.