As the legal profession continues to evolve, the billing structure for attorneys has changed drastically over the years. One of the most common billing structures used by attorneys is the hourly rate. This means that an attorney will charge a client an hourly rate for their services. Due to this unique billing structure, an attorney may request that a client make a lump payment upfront of a certain amount to retain the attorney.
When an attorney requests a payment upfront, it is typically to cover the initial costs associated with the case. This includes filing fees, court costs, research fees, and other expenses. The attorney will deduct these expenses from the initial payment and then use the remaining funds to cover their hourly rate. As the attorney works on the case, they will deduct their hourly charges from the initial payment.
It is important to note that the amount of money requested upfront by an attorney is not a guarantee of success. The attorney is simply asking for the funds to cover the initial costs associated with the case. It is also important to note that the attorney may not be able to estimate the total cost of the case upfront. Depending on the complexity of the case, the attorney may not be able to accurately estimate the total cost until the case is resolved.
When an attorney requests a payment upfront, it is important to ask questions and make sure that you understand the terms of the agreement. It is also important to ask the attorney to provide an estimate of the total cost of the case. This will help you determine if the attorney is charging a fair rate for their services.
In conclusion, due to the unique billing structure of hourly work and charges, an attorney may request that a client make a lump payment upfront of a certain amount to retain the attorney. As an attorney works on the case, the attorney will deduct hourly charges as they accrue from the initial payment. It is important to ask questions and make sure that you understand the terms of the agreement before agreeing to the payment.
Written by: Jan 25, 2022
