- Legal EditorHenry Dahut, J.D.
Henry Dahut, J.D.
Attorney - Legal Publisher - Educator
Henry Dahut is a licensed California trial attorney. Over the course of his 30-plus years practicing law, Henry has represented and counseled countless clients in legal trouble.
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Not all legal matters require the retention of a high-priced law firm. Many types of routine legal tasks and services can just as quickly be performed by trained and supervised paralegals rather than by lawyers. Paralegals are customarily supervised by lawyers and can perform many standard services at substantial savings compared to traditional legal fee arrangements.
Diverse Variety of Legal Services
Discount Legal Services
Some discount legal services are similar to the fixed fee arrangement explained above. The significant difference is that most discount legal services utilize paralegals rather than attorneys to perform the work. For example, a simple non-contested divorce might cost just a few hundred dollars, compared with the customary few thousand dollars most divorce lawyers bill for the same uncontested divorce.
Form-Based Document Services
Other discount legal services provide the purchaser with fill-in-the-blank legal forms, which are relatively straightforward to complete. They are often called form kits. Each form kit is state-specific, so you know you are dealing with the right set of rules in your state. The form kit also comes with easy-to-read instructions, and the whole package can cost you as little as $20.
Legal Service Plans
Finally, family legal plans resemble insurance products administered through large organizations and require monthly dues in exchange for deep discounts on specific types of legal services. The savings using these services can be substantial. The attorney quality is usually not as high as you might find in some of the larger, more prestigious firms, but that’s why the service costs half as much.
Types of Fee and Billing Arrangments
Traditional Legal Fee Arrangements
Methods of attorney fee compensation include contingency fees, hourly billing, and fixed-rate fees. Each of these fee arrangements is described below.
Contingency Fee Basis
In contingency fee cases, the firm agrees to earn its fee as a percentage of the client’s financial settlement or award. Customary contingency fees for personal injury law matters are usually based on one-third of the plaintiff’s total recovery before trial and forty percent of the plaintiff’s recovery should the matter proceed to trial. Both the attorney and the client assume the risk in these types of fee arrangements. If the client loses the case and receives nothing, so does the law firm.
Hourly Rate Basis (Billable Hour)
Most attorneys still charge by the hour for legal work rendered. Young lawyers are hired and told the number of billables they are “required” to the bill. Hourly rates can range significantly depending on the qualifications and reputation of the lawyer or firm retained. Today hourly rates start in the three hundred dollar range. The disadvantage to hourly rate arrangements is that the lawyer has no incentive to complete the matter quickly. The sad truth remains, the longer a lawyer spends on a case, the more the firm can earn.
Fixed Fee Basis
Attorneys usually charge a fixed fee for standard routine matters such as wills, deeds, divorce, incorporation, name change, and simple bankruptcy. Fixed costs or flat fees, as they are sometimes called, are based on a single price in exchange for a single fixed sum. In this arrangement, the attorney and firm are rewarded for efficiency and time saving rather than for the amount of time it took to complete the matter.
