(almost) Everything You Always Wanted to Know
About Legal Fees
But Were Afraid to Ask
FIRST CONSULTATION. This office does not have
a "free initial consultation" policy. For an office or telephone
conference to discuss a legal matter with a person who is not
presently a client of the firm, the fee is $60.00 for the first
hour ($30.00 per half hour). After the first hour, the regular
hourly rate applies. In cases where the meeting is not for the
purpose of obtaining legal advice, but rather for the purpose of
getting acquainted as part of a potential client's process of
"shopping" for an attorney, there is no fee. The time for such
meetings is, however, subject to availability.
HOURLY RATE. Nearly all services provided by
this office are charged at an hourly rate for all time devoted to
the client's legal matter. The time spent on each activity is
multiplied by the applicable rate to determine the fee charged.
Time is charged in increments of one-tenth of an hour.
CONTINGENCY FEE. In some cases, the fee is
determined as a percentage of the amount actually recovered by
the attorney for the the client. If the client recovers nothing,
there is no fee. Contingency fee arrangements are most often used
in personal injury, malpractice cases, negligence, and debt
collection cases. This office generally does not handle these
types of cases (other than certain debt collection matters).
Consequently, contingency fee arrangements are rarely utilized by
this office.
FLAT FEE. For certain legal matters, a fixed
fee may agreed to in advance, regardless of the time actually
spent. Simple wills are typically handled on this basis.
RETAINER. An advance payment is normally
required to employ the firm to undertake the client's legal
matter. The retainer should not be confused with a flat fee. The
retainer is applied to fees and expenses as they are incurred,
however, total fees and expenses may exceed the retainer. If the
retainer exceeds the total charges, the excess is returned to the
client at the conclusion of services.
EXPENSES. Unless otherwise stated in the
Retainer Agreement, the client is responsible for payment of all
expenses incurred, in addition to the legal fees charged. Such
expenses may include filing fees, witness fees, fees for expert
witnesses, travel, lodging, long distance telephone, postage,
copying, depositions and transcripts, stenographers, messengers,
and any other expenses incurred in connection with the client's
legal matter. The client may be required to advance funds for
anticipated expenses.
TIME. Particularly under an hourly rate fee
arrangement, it is important for the client to keep in mind that
all time spent on the client's legal matter is "billable" time
for which a fee will be charged. This includes time spent on:
telephone conversations with the client and others; meetings with
the client and others; drafting, reviewing, and modifying
documents; maintaining notes and memoranda of meetings and
conversations; research; traveling to and from meetings and
hearings; dictating letters; reading letters from others; and
planning, organizing and thinking through the legal issues,
problems or strategies involved in the client's legal matter.
BILLING. Unless otherwise agreed, payment of
fees and expenses is due upon receipt of the statement.
Statements are normally mailed at the beginning of each month.
Statements will itemize the dates and types of activity on the
account for the most recent month, the time spent, and the fees
and expenses charged. The client should examine the statement
carefully upon receipt and notify the firm immediately if there
is any question, complaint or dispute concerning a fee or expense
charged. If the amount due on the statement is not paid in full
by the end of the month, then the account will be considered
delinquent and the firm may suspend further services until the
statement is paid. If the statement is not paid after further
notice and demand, then the firm may withdraw from further
representation of the client and take such action as necessary to
collect any amount due on the account. Delinquent accounts may be
assessed a late charge of one percent (1%) per month on the
delinquent balance.
(The following is the standard retainer agreement used in this
office. The agreement may vary depending upon the facts and
circumstances presented by the individual client.)
Attorney and Client agree
that Attorney will represent Client in the following matter:
subject to the terms of this Retainer Agreement.
RETAINER. Upon payment of $_____________ as a
retainer, Attorney will begin work on Client's legal matter. The
retainer will be applied to fees and expenses. Total fees and
expenses may exceed the retainer, and will depend on the actual
amount of time spent and expenses incurred. If the retainer
exceeds the total charges, the excess will be repaid to Client
upon conclusion of the case.
FEES. Fees will be charged at the rate of
$________ per hour for all time devoted to the above legal matter
for six months from the date of this agreement. Thereafter, the
hourly rate may be adjusted by Attorney to the standard hourly
rate in effect at that time. The time billed for each activity is
multiplied by the hourly rate to determine the amount charged.
Time is billed in increments of one-tenth of an hour; for
example, 0.20 billed on the Client's statement means two tenths
of an hour, not twenty minutes. The minimum charge is 0.10
hr.
1 - 6 minutes = 0.10 hr. 31 - 36 minutes = 0.60 hr.
7 - 12 minutes = 0.20 hr. 37 - 42 minutes = 0.70 hr.
13 - 18 minutes = 0.30 hr. 43 - 48 minutes = 0.80 hr.
19 - 24 minutes = 0.40 hr. 49 - 54 minutes = 0.90 hr.
25 - 30 minutes = 0.50 hr. 55 - 60 minutes = 1.00 hr.
All time spent on the Client's legal matter is billable time
for which a fee will be charged. This includes time spent on
meetings with the Client and others, telephone calls with the
Client and others, preparing and reviewing documents, maintaining
records of meetings and conversations, research, travel to and
from meetings and court hearings, dictating and reviewing
letters, time spent on keeping the Client informed of the
progress and status of the matter, and any other services
relating to the Client's legal matter.
EXPENSES. The Client is responsible for
payment of all expenses incurred, in addition to the above fees.
Examples of expenses are filing fees, witness fees, travel,
lodging, long distance telephone, postage, copying, depositions
and transcripts, messengers, and any other expenses incurred in
connection with the Client's legal matter.
ADVANCE FEES AND EXPENSES. Attorney may
require Client to advance funds for anticipated charges for legal
fees and/or expenses. Such advances will be held in Attorney's
trust account, in the Client's name, and drawn upon as fees
and/or expenses are actually incurred. Such funds (including the
retainer) do not bear interest. Any advanced fees or expenses
which are not expended will be repaid to Client upon conclusion
of the case.
STATEMENTS. Statements will itemize the dates
and types of activity for the most recent month, the time billed,
and the fees and expenses charged. Statements are normally mailed
at the beginning of each month. Payment in full is due upon
receipt of the statement. Client will notify Attorney immediately
if there is any question, complaint or dispute concerning a fee
or expense charged. Unless the statement is questioned by Client
by the end of the month it's mailed, the statement will be deemed
correct and accepted by Client. If the amount due on the
statement is not paid in full by the end of the month, the
account will be considered delinquent and Attorney may suspend
further services until the statement is paid. If the statement
remains delinquent after a warning, Attorney may withdraw from
further representation of Client and take such action as
necessary to collect the account. Delinquent accounts may be
assessed a monthly late charge of one percent (1%) of the past
due balance.
RESPONSIBILITIES. Client must fully cooperate
with Attorney and provide all information relevant to the matter
involved. Attorney will provide conscientious, competent and
diligent services, and exercise his best efforts to achieve the
legal objectives sought by Client. Because of the uncertainty of
legal proceedings, interpretation and changes in the law, and
unpredictable factors, Attorney cannot warrant or guarantee the
result or final outcome of the case. Attorney will not settle or
compromise any claim without the knowledge and consent of Client;
nor will Client settle or compromise any claim without the
knowledge of Attorney. If Client demands any action or conduct
which is unethical or for the purpose of harassment, or which
would involve Attorney's violation the Code of Professional
Responsibility, Attorney is entitled to withdraw from further
representation of Client and shall be paid for all accrued fees
and expenses.
ESTIMATED CHARGES. Attorney has estimated
that the fees and expenses of this matter should be approximately
$______________. It is understood that this is an estimate only,
based upon current information provided by Client; and that
additional circumstances may develop in the course of this matter
which render the estimate obsolete and inaccurate.
DATE: _____________________________
CLIENT:
___________________________________
ATTORNEY:
___________________________________
The following are typical fees and fee arrangements for the
types of legal matters listed. Estimated fees, when shown, are
based on average experience and are not necessarily an indication
of actual fees, which will vary depending upon the client's
individual facts and circumstances. Unless otherwise stated, the
following illustrations do not include additional charges for
expenses.
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BUSINESS ORGANIZATION (Hourly Rate)
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Estimated fees and expenses:
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Corporation
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$ 750.00
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Partnership
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$ 1,500.00
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Limited Liability Company
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$ 850.00
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The above estimates are for basic and non-complex business organizations.
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CRIMINAL (Hourly Rate)
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Estimated fees:
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Felony
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plea or diversion
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$ 750.00
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trial to the court
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$ 3,000.00
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trial to a jury
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$ 5,000.00
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Misdemeanor
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plea or diversion
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$ 500.00
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trial to the court
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$ 1,500.00
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trial to a jury
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$ 3,000.00
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Traffic Infraction
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$ 250.00
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Retainer required in criminal cases varies depending upon severity of crime charged. Generally, felony retainer is $1,000.00 - $5,000.00, misdemeanor retainer is $500.00 - $1,000.00, and
traffic infraction is $250.00.
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DIVORCE (Hourly Rate)
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Estimated fees and expenses:
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Uncontested
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$ 750.00
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Contested
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$ 2,500.00
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Uncontested means that all matters, including division of property and debts, child custody and support, and spousal maintenance, have been agreed to by the parties at the time of the first
consultation.
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Retainer required in divorce cases:
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Uncontested
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$ 500.00
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Contested
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$ 1,000.00
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GENERAL LEGAL MATTERS (Hourly Rate)
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Unless otherwise agreed, most legal matters will be charged at hourly rates as follows:
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Rate for attorney:
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$ 120.00/hour
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Rate for paralegals and law clerks:
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$ 60.00/hour
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Minutes converted to billable time:
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01 - 06 minutes = 0.1 hr.
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31 - 36 minutes = 0.6 hr.
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07 - 12 minutes = 0.2 hr.
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37 - 42 minutes = 0.7 hr.
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13 - 18 minutes = 0.3 hr.
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43 - 48 minutes = 0.8 hr.
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19 - 24 minutes = 0.4 hr.
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49 - 54 minutes = 0.9 hr.
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25 - 30 minutes = 0.5 hr.
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55 - 60 minutes = 1.0 hr.
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OIL & GAS (Hourly Rate)
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Virtually all oil and gas matters are handled on an hourly fee. The types of services are so variable, depending upon the particular circumstances, that it is virtually impossible to list
"typical" charges. The following are merely indicative of the experience of some clients at one time or another.
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Oil & gas lease
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$ 150.00
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Lease assignment
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$ 60.00
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Participation agreement
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$ 350.00
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Operating agreement
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$ 250.00
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Limited partnership agreement
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$ 2,500.00
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Limited liability company
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$ 1,500.00
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Incorporation
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$ 750.00
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Title opinion
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$ 600.00
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Title curative affidavit
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$ 60.00
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Tax rendition
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$ 120.00
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Quiet title suit (default)
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$ 1,200.00
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Lease cancellation bench trial
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$ 7,500.00
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Subterranean trespass jury trial
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$ 20,000.00
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Well location exception (uncontested)
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$ 1,000.00
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REAL ESTATE (Hourly Rate/Flat Fee)
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Estimated fees (not including consultation time):
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Simple deed
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$ 60.00
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Simple mortgage
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$ 60.00
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Contract of sale
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$ 360.00
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Title Opinion (from abstracts)
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$ 360.00
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Title Opinion (stand-up)
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$ 600.00
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Review of title insurance policy
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$ 120.00
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Closing
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$ 250.00
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WILLS (Flat Fee/Hourly Rate)
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Simple will for one person
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$ 120.00
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Simple husband and wife wills
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$ 150.00
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Other wills at hourly rate
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$ 250.00 - $ 750.00
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