"A lawyer's time is his stock in trade." --Abraham Lincoln
"A reasonable doubt for a reasonable fee."  -- Old American Legal Adage

This is the topic which creates much resentment about the legal profession. Jokes are abound about lawyers who churn fees, pad bills, or will do anything for money. Like most humor it is an outlet for anxiety, tension, or even hostility. Most litigators, including myself, have very thick skins. After all, our work is usually unpopular with somebody.  So I've never known lawyer jokes to bother any litigator. Indeed, I have to admit, a few caused me to laugh loud and hardy.

I certainly do not intend to sway people from any beliefs they may hold about lawyers... talk about an insurmountable task.  Also, this is, by no means, an exhaustive treatment of every issue relating to attorney fees. That would require quite a few gigs of space. The purpose of this discussion is to enlighten you and hopefully alleviate some of  that tension or anxiety should you have to discuss the subject of fees with a lawyer. Toward that end, it isn't a cursory discussion.  Before I discuss attorney fees in chief, however, I offer some basic concepts which will get you and the lawyer on the same page. You may disagree with the concepts, but they exist, like it or  not.

    1. The law business is a business. It is meant to be a profit making enterprise. There is absolutely no need for any lawyer to apologize for this. This is America, remember? Where free enterprise reigns.

    2. Contrary to popular belief or urban folklore, lawyers are not obligated to give anybody free services or advice.  That lawyers may do so, far more than most other professions, does not change that. One should be as appreciative upon receiving such, just like if any other business gave one a freebie.

    3. As the Prophet Abraham sets forth, TIME is what a lawyer sells. Thus, do not be shocked to learn that  lawyers are going to charge you for their TIME.  Think of this way, if you are an employee, would you expect your boss to deduct from your pay for the time you spent performing your duties on the phone? Deduct for the time you spent drafting letters?  Of course not. So, expect a lawyer to bill you for items like phone calls and letters.

    4. And here it comes...LAWYERS CAN BE EXPENSIVE.  O.K., we got that out of the way. That said, you should not be dissuaded from seeking legal help. As discussed below, there are many instances where immediate payment may not be necessary. In essence, it can't hurt to ask. Yet, don't take it personal if such arrangements can't be made. It's a business decision. The lawyer is rejecting undertaking the case under a certain set of financial circumstances. The lawyer is not rejecting you.
 
    5. Lawyers are rich, aren't they?  This is a true lawyer joke.  Surveys show that the average income for all lawyers in the Bay Area, California ranges from a mean average of about 155 thousand dollars to a median average of about 145 thousand dollars per year.  In the Bay Area that hardly makes somebody rich.
 
Now that you see where the lawyer is coming from,  let's look at some of the most common concepts relating to attorney fees:

  HOURLY FEES

  CONTINGENCY FEES

  FLAT RATE FEES

RETAINER AGREEMENTS

WHEN OTHERS PAY YOUR FEES
.

The most typical way lawyers charge for time they spend on their cases is by charging an hourly rate. Most lawyers bill their time in increments of tenths of an hour.  Though some lawyers may bill in larger or smaller time increments.  Billing practices are not universal. That is, practices vary as to what items are actually billed. Some lawyers bill for reviewing a file every month. Some bill for attempted phone calls. Then many don't bill for those types of items. Almost all lawyers bill for drafting documents, including letters. They bill for time spent on the telephone and for tiime spent in consultations. Of course, they bill for time spent in court proceedings or depositions. Just to name a few commonly billed items. Some don't bill travel time separately, but include it in their time for the task overall. Some lawyers charge mileage on top of travel time.

I do not charge for periodically reviewing a client's files. If, however, a client hires me, after the case has been under way with another lawyer, then I do charge for the time to initially review the client file. I charge travel time, but not mileage. Also, depending on the venue of a case, I may promise the client never to exceed a particular travel time. It seems I bill for about half my research time. I have a hard time justifying  charging for research that dead ends. Though, it is ethical if a lawyer does. Most certainly I charge for phone calls, as well as voice mails and e-mails. I charge for drafting documents, preparing for proceedings and attending proceedings. Also, I do charge for reviewing incoming material on a case, unless it is a brief blurb. This illustrates just a few, of many, common items of billing.

Let us not overlook how expenses are handled in an hourly fee agreement. Many lawyers charge, in addition to their hourly rate, for items such as: copies, faxes, toll calls, postage, and parking. I do not charge extra for any of that. In essence, I charge for expenses only for which I must pay to a third party for a client's direct benefit. Such as: court filing fees, process server fees, transcript fees, or copy fees to a professional copy service. Virtually all lawyers charge for those items in addition to their hourly rate.

Then there's the practice of charging for non-lawyer time, like the secretary or para-legal. Many firms routinely charge for those items. I very seldom do. When I do, it is because of weekend overtime I must pay my secretary at the client's insistence and with the client's agreement to cover the cost.

My general hourly rate, by the way, is $300.00 - $350.00 per hour depending on the nature of the case. In essence, my fees are about 10% less than most lawyers with my experience in the San Francisco Bay Area for lawyers with similar experience.

Now, before you whip out the calculator and go: 300 x 40 x 52, and say: "Sounds like a lot more than making 100 to 120 thousand dollars per year." Don't forget the overhead, the amount of non-billable hours on items such as free consultations or reviewing legal updates. Not to mention a good chunk of time spent on administrative tasks. Remember? The law business is a business. Also, the people who don't pay their bills after I do the work. Additionally, the pro bono work I do. Just to name a few items which prevents majority of lawyers from bringing home $600,000.00 per year.

The billing items I mention are by no means exhaustive.  I offer them to make a point. Do not merely call a law office and ask: "How much do you charge?" or "What is your hourly rate?"  Go meet with the lawyer and find out the lawyer's billing practices. Believe me, it is quite possible that a lawyer with a lower hourly rate can have a final bill far greater than the higher priced lawyer. Then again, maybe not. Unfortunately, there is no easy way to tell, except to get to know the lawyer and the lawyer's billing practices.

Moreover, if you don't get to know the lawyer, you may fall victim of the "Pen Syndrome." You know, if you pay $150.00 for a Mont Blanc pen, it just has to write better than a $5.00 pen.  At times, the only difference between a lawyer charging $150.00 per hour and one charging $200.00 per hour -- is $50.00 per hour.

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