February 18th, 2010

There are three primary ways attorneys are paid.  First, the dreaded billable hour.  Every minute your attorney thinks about your case translates into a bill you must pay.  Rates can range from expensive to really expensive and a lawyer’s bill can grow quickly when litigating a case.  Second, flat billing rates.  These rates are negotiated up front with the lawyer.  Typically, this method for paying an attorney is employed in matters involving the creation of documents, estate planning, perhaps some criminal matters.  Finally, the wonderful contingency fee.  This fee arrangment is a win/win solution for lawyer and client.  Client is not risking any money, lawyer must earn payment by obtaining a positive result…everyone is happy in the end.   Unfortunately, not all cases qualify to be handled on a contingency basis.  If you have a case involving an insurance company, more than likely you have a contingency case.