Guides · Fees
How lawyers charge, in plain English
Contingency, hourly, flat fee and retainer, what each one really means for your bill, and which kinds of cases usually use which.
Most confusion about legal bills comes from not knowing which of four arrangements you are in. They behave very differently.
Contingency
The firm takes a percentage of what you recover and nothing if you recover nothing. Common in personal injury, some employment cases, and other matters where money is being sought. Two things to pin down: the percentage, and whether it changes if the case goes to trial rather than settling. Many agreements step up at that point, which is normal, but you should know the number before you sign.
Ask separately about costs. Filing fees, expert witnesses, medical records and depositions are usually not part of the percentage. Ask who fronts them and whether you owe them if the case loses.
Hourly
You pay for time, usually in fractions of an hour, and different people in the firm bill at different rates. Common in business disputes, family law and anything defensive. The useful questions are who else will touch the file and at what rate, and whether you will get an itemised bill rather than a single line.
Flat fee
One price for a defined piece of work. Common in wills and estate planning, immigration filings, simple real estate closings, uncontested matters, and some criminal defense. The whole value is in the word defined. Ask exactly what is inside the price and what would count as outside it.
Retainer
Money paid up front that the firm draws down as they work. It is not a fee by itself, it is a balance. Two things to establish: whether unused money comes back to you, and what happens when the balance runs out mid-matter.
The comparison that actually helps
When you speak to more than one firm, do not compare headline numbers. Compare what happens in the bad case. What do you owe if this settles in a month? What do you owe if it drags for two years? What do you owe if you lose? Two firms quoting the same rate can produce very different bills.
General information only. Fee structures and what is customary vary by state and by practice area, and nothing here is advice about your matter.