By: The Florida Bar, Consumer Pamphlet 5/01

This chapter explains various types of attorney fees, and how those fees are often determined. Some helpful tips to the consumer on how to keep their legal costs down are also included.

DETERMINATION OF FEES An attorney bases fees on such factors as the degree of difficulty of a particular legal task, the amount of time involved, the experience, and skill of the attorney in the particular area of law and the attorney's cost of doing business. The cost of doing business, referred to as overhead, usually includes rent, equipment, salaries, maintenance of a library, and costs associated with maintaining the lawyer's level of professional skills and education. A lawyer's overhead normally comprises 35 to 50 percent of the legal fees charged. A lawyer's services normally involve research, investigation and case preparation. Most of the work is done after the client leaves the lawyer's office and it can be very time-consuming. As a result, the client is often unaware of the amount of time a given legal matter will actually take. A client should always discuss the prospective charges at the first meeting with the attorney. At the initial meeting, the attorney and the client should discuss the time anticipated to resolve the case, the difficulties likely to be encountered, and the complexity of the legal issues in the particular case. An early agreement concerning fees will prevent surprises and misunderstandings for both the client and the attorney. A client should be prepared to decide how much money he or she can afford to invest in the resolution of the problem. The attorney/client relationship involves a mutual commitment. Both parties have a need from the outset to have a full and complete understanding of the commitment.

COST DEPOSITS AND RETAINERS Under the Rules of Professional Conduct for the legal profession, lawyers are prohibited from engaging in frivolous lawsuits. Therefore, many lawyers require a cost deposit or retainer before they will take a case. A retainer is an advance on legal fees to be charged in the future. A cost deposit is different from the attorney's fees to be charged in a case.
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