How Lawyers Charge: Hourly, Flat and Contingency Fees

Lawyers commonly charge by the hour, a flat fee for a defined task, or a contingency fee that is a percentage of any money recovered. Each state's lawyer-conduct rules limit what lawyers may charge; for example, California's rules bar contingency fees for defending criminal cases and in divorce matters, and states such as Florida and New York cap contingency percentages in certain cases. Bar programs also offer fee arbitration when a client and lawyer disagree about a bill.

What the law says

Hourly rates vary among lawyers; the State Bar of California suggests asking the lawyer to estimate how much time your case will take. Flat fees are commonly used for routine matters such as preparing a simple will. State Bar of California, What to Expect Regarding Fees and Billing
With a contingency fee, the lawyer is paid a share of any recovery; the State Bar of California says you are still responsible for case costs even if your case is not successful. State Bar of California, What to Expect Regarding Fees and Billing
Example (California): under Rule 1.5 of the California Rules of Professional Conduct, a lawyer may not make an agreement for, charge, or collect an unconscionable or illegal fee. Factors include the time and labor required, the amount of the fee compared with the value of the services, whether the fee is fixed or contingent, and whether the client gave informed consent. State Bar of California, California Rules of Professional Conduct, Rule 1.5
Example (California): Rule 1.5 bars a contingent fee for representing a defendant in a criminal case, and bars a family-law fee that depends on securing a divorce or annulment or on the amount of spousal or child support or a property settlement. A comment says this does not prevent a contingent fee for collecting past-due support under a judgment. State Bar of California, California Rules of Professional Conduct, Rule 1.5
Example (California): a fee called "non-refundable" or "earned on receipt" is allowed only if it is a true retainer (paid to ensure the lawyer's availability, not for legal work) and the client agrees in writing. A flat fee is a fixed amount that is complete payment for described services regardless of how much work is ultimately involved. State Bar of California, California Rules of Professional Conduct, Rule 1.5
Example (California): a fee agreement must be in writing when the lawyer expects fees and costs to total $1,000 or more. A contingency agreement must state the lawyer's percentage and say that the fee is negotiable between the attorney and the client. State Bar of California, What to Expect Regarding Fees and Billing
Example (Florida): a contingency fee contract must be in writing and signed by the client. For personal injury and property damage cases, Florida's Rules of Professional Conduct presume a fee is excessive, without prior court approval, if it exceeds limits such as 33 1/3 percent of any recovery up to $1 million if the case settles before an answer is filed, or 40 percent of any recovery up to $1 million after an answer is filed. The Florida Bar, Consumer Pamphlet: Attorney's Fees
Example (New York): Judiciary Law § 474-a caps contingent fees in medical, dental, or podiatric malpractice cases on a sliding scale, starting at 30% of the first $250,000 recovered and falling to 10% of any amount over $1,250,000, unless a court approves a higher fee for extraordinary circumstances. New York Judiciary Law § 474-a (NY State Senate)
Example (Florida): advances on fees and costs are deposited into a special bank account called a trust account, and unused advances should be refunded. Nonrefundable fees and retainers are earned when received and are not held in a trust account; the client must consent in writing to any nonrefundable fee. The Florida Bar, Consumer Pamphlet: Attorney's Fees
Example (California): clients have the right to have a neutral arbitrator hear fee disputes, and if the client chooses arbitration, the attorney must participate in most cases. The program cannot award damages for malpractice and cannot discipline attorneys. State Bar of California, Frequently Asked Questions: Fee Disputes

FAQ

Can a lawyer take my criminal case on a contingency basis?

Not in California, where Rule 1.5 bars a contingent fee for representing a defendant in a criminal case. Other states have their own versions of this rule.

Can a divorce lawyer charge a percentage of what I get?

In California, a family-law fee that depends on getting a divorce or on the amount of support or a property settlement is not allowed, though a contingent fee for collecting past-due support under a judgment is permitted.

Is the contingency percentage set by law?

Generally no. The State Bar of California says a contingency agreement must state that the fee is negotiable, and fees are not set by statute except for certain matters where a court sets or approves the fee. Some states cap percentages in certain cases, such as New York for medical malpractice.

What is a retainer?

The Florida Bar describes a retainer as a fee paid for the lawyer's availability to a client for legal matters. The State Bar of California notes that a retainer is sometimes treated as a down payment, with fees deducted until it runs out.

Do I owe anything if I lose a contingency case?

You may. The Florida Bar says the lawyer generally isn't paid unless the client wins, but the client may still owe certain costs.

What can I do if I disagree with my lawyer's bill?

Contact the lawyer first. Many state bars run fee arbitration programs; The Florida Bar's program is voluntary, so both sides must agree, and they are then bound by the arbitrator's decision. In California, a client who receives the attorney's notice of the right to arbitrate has 30 days to submit a request.

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.

How Lawyers Charge: Hourly, Flat and Contingency Fees

What the law says

FAQ

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