Attorney Fees Explained: How Lawyers Charge and What You Should Expect

Attorney fees are one of the biggest questions people have when hiring a lawyer, and that of course makes sense. Legal help can be very expensive, and most people have no idea what their case will actually cost until they are in the middle of it.

So, let’s fix that.

What you need to understand is that attorney fees vary widely depending on the type of case, the lawyer, and the fee structure. A business dispute may be billed one way while a personal injury claim could be billed another. And in either situation, there might also be costs, such as court filing fees, that are separate from the lawyer’s fee.

This guide explains everything in plain English. We’ll cover the most common types of attorney fees, what affects what you pay, your rights as a client, and how to avoid costly surprises.

At Armstrong Lee & Baker LLP we only accept personal injury cases on a contingency fee, which means that we only charge a fee if we win our client’s case.

What Are Attorney Fees?

Attorney fees are what you pay a lawyer for legal services. That includes their advice, investigation, the drafting of documents, negotiating, filing legal papers, preparing the case for trial, and if necessary, trying the case.

Attorney fees need to be distinguished from other fees and expenses. They are not the same thing as court costs, filing fees, or other case expenses. Those are separate charges that come from the court or third parties. So, for example, paying for medical records is not an attorney fee, and neither is a court filing fee. Those are costs of building and proving a case that the client may be responsible for as well, depending upon the fee agreement.

The key point is that fees and costs should be clearly disclosed, explained, and agreed upon in advance, especially when it comes to legal fees in Texas, where rules and policies can vary by firm. If your attorney can’t explain how they charge in simple terms, that’s a problem.

Common Types of Attorney Fee Arrangements

There is no single “standard” way lawyers charge; fee arrangement depends on the sort of case it is and what the attorney prefers. These are the most common structures.

Hourly Attorney Fees

Hourly billing means you are buying the lawyer’s time. The attorney tracks hours spent on your matter and bills you at a set hourly rate, typically in small increments such tenths of an hour. Thus, for example, a 15-minute phone call to opposing counsel would be billed a quarter of an hour, and if the attorney charges $400/hour, that call would be $100. Hourly fees are common when the work is open-ended or hard to predict, such as business disputes, complex litigation, and contested family law matters. The main benefit to this type of fee arrangement is that you pay as you go. The downside is that it can get expensive if the case grows complicated, because then, of course, so too does the bill.

If you are paying hourly, ask your lawyer for regular monthly statements and find out from the start who will do what tasks because an assistant or paralegal’s work should be billed at a lower rate. Also, discuss what happens if the retainer runs low.

Contingency Fees

A contingency fee, often referred to as a ‘no win-no fee’ agreement, means that the lawyer is paid only if they recover money for you. The attorney fee is typically a percentage of the settlement or verdict and usually ranges anywhere from 33% on up. Contingency fees are most common in personal injury and wrongful death cases because many injured people cannot afford to pay by the hour while also dealing with medical bills and missed work.

One critical detail: Even when the attorney fee is contingent, expenses may still apply and may need to be paid by the client as the case progresses (again, depending on the fee arrangement with the law firm.) Medical record fees, depositions, expert witnesses, and filing fees are these sorts of real costs. Many firms do advance these costs and are reimbursed from the recovery, but the agreement should clearly explain how that works and what happens if there is no recovery.

Flat Fees

A flat fee is a set price for a specific legal service. Flat fee legal services are most common when the scope is predictable. For example, a bankruptcy case might cost a flat fee of, say, $1,500. Other examples include drafting a will, handling an uncontested divorce, forming a basic business entity, or reviewing a straightforward contract. The upside to this sort of attorney fee agreement is clarity. You will know the exact cost up front. The risk, on the other hand, is scope creep. If the matter becomes more complex than expected, the agreement may say the lawyer can charge more or move to hourly billing.

If you are paying a flat fee, make sure you understand exactly what is included and what is not.

Retainer Fees

A retainer is money paid upfront. In many cases, especially hourly matters, a retainer is essentially used as an advance deposit. The lawyer bills against it as work is completed. Some retainers are refundable, meaning any unused portion is returned. Others are described as non-refundable or “earned upon receipt,” depending on the agreement, how the attorney charges, and the purpose of the payment. The language matters and the rules can be technical, so do not guess. Ask how the retainer will be held, how it will be applied, and when it is considered earned.

What Factors Affect Attorney Fees?

Attorney fees vary because cases vary. Even within the same type of legal matter, the workload can look completely different depending on the facts and the other side’s behavior.

Here are the most common factors that affect the cost of hiring a lawyer:

• Complexity of the legal issue. Straightforward cases take fewer hours than cases with disputed facts, multiple parties, or complicated legal questions.
• Time and labor required. Some matters resolve quickly. Others require extensive investigation, filings, hearings, or discovery.
• Lawyer’s experience and reputation. A more experienced lawyer may charge more, but may also work more efficiently and spot issues faster.
• Geographic location. Rates can differ based on local market conditions.
• Whether the case goes to trial. Trial preparation is intensive. Even if a case settles, getting it ready as if it will go to trial is often what drives value.
• Urgency or time constraints. Emergency filings, fast deadlines, or time-sensitive situations can increase the workload quickly.

Attorney Fees vs. Court Costs and Expenses

Attorney fees pay the lawyer. Court costs and case expenses pay everyone else involved in moving the case forward. Examples of additional expenses can include filing fees, service fees, deposition transcripts, expert witnesses, medical records, and investigation costs. These are often necessary to prove liability and damages.

In contingency cases, many firms advance these costs so the client is not paying out of pocket during the case. If money is recovered, the costs are typically reimbursed from the recovery. The fee agreement should explain the order of distribution. In other words, it should tell you whether costs are deducted before or after the contingency percentage is calculated.

If you are comparing lawyers, do not focus only on the contingency percentage. Ask how costs are handled. That is where misunderstandings often happen.

Client Rights When It Comes to Attorney Fees

When it comes to attorney fees, you have rights:

1. You have the right to understand what you are agreeing to. Ask your lawyer if you don’t understand a certain word, phrase, or even section.
2. You have the right to receive clear explanations of fees, including the right to a written agreement and the right to understand it before you sign. If you are billed hourly, you also have the right to billing statements that show the work performed.
3. You have the right to dispute unreasonable or unclear charges. If something does not make sense, ask, and ask as soon as you discover it. Waiting until the end of a case is when fee disputes get ugly.
4. Finally, you have the right to change lawyers if needed. But understand this too: While changing lawyers certainly can be done, it can also create complications about fees and costs, so do not do it casually. If you are unhappy about something with your case, talk to the lawyer first, then make decisions with full information.

Set Up a Free Consultation with Armstrong Lee & Baker LLP Today

If you have questions about attorney fees or need help with a legal matter, don’t wait. The attorneys at Armstrong Lee & Baker LLP offer free consultations and will explain your rights, your options, and what to expect in, yes, plain English. Call us at 832-402-6637 or send us a message to schedule your appointment today.

Joshua Lee

Joshua Lee believes in aggressive, tough advocacy and a client-centered approach to every case. Joshua draws from a wide body of experiences and a robust understanding of the law. Joshua graduated from the New York University School of Law in New York City, which is considered among the best law schools in the world. Our lawyers have 25+ years of combined experience.

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