Understanding Legal Fees Before You Hire a Lawyer
Hiring a lawyer is an important decision, and cost is part of that decision. At 1818 Legal, we believe clients should understand how fees work at the beginning of a matter—not after the work has started. Depending on the type of case, we may offer contingency, hourly, flat-fee, or other billing arrangements.
Hiring a lawyer is a significant decision, and cost is part of that decision. We believe clients should understand how fees work at the beginning of a matter—not after the work has started. Depending on the type of case, we may use contingency, flat‑fee, hourly, or other billing arrangements.
Our goal is to be transparent about costs, expectations, and next steps so you can make an informed choice about representation.
What Is a Contingency Fee?
In some litigation matters, a contingency fee may be appropriate. Whether that is an option depends on the type and strength of the claims, the available evidence, the potential recovery, and the expected work involved in pursuing the case.
When contingency representation is available and appropriate, it can allow clients with strong cases to move forward without paying hourly fees as the case proceeds.
When a Contingency Fee May Be Available
In some litigation matters, a contingency fee may be appropriate. Whether that is an option depends on the type and strength of the claims, the available evidence, the potential recovery, and the expected work involved in pursuing the case.
When contingency representation is available and appropriate, it can allow clients with strong cases to move forward without paying hourly fees as the case proceeds.
When Contingency May Not Be the Right Fit
Many employment lawyers handle matters on an hourly basis and require an upfront retainer before beginning work. The retainer is used to pay for the attorney’s time as work is performed on the matter.
Depending on the case, that work may include reviewing documents, advising you about your options, communicating with the employer or opposing counsel, negotiating a resolution, drafting filings, or preparing claims. Attorneys generally bill against the retainer at their hourly rates, and clients may receive periodic invoices showing how the retainer has been used.
Other Fee Structures We Use
Flat Fees
For some matters, a flat fee offers clarity and predictability. A flat fee can be a practical option where the scope of work is clear at the outset—for example:
- Providing discrete advice on a focused employment issue
- Handling a defined, limited‑scope project
- Conducting a strategy consultation before litigation
With a flat fee, you know the cost of the legal work up front.
Hourly Billing
Some matters are best handled on an hourly basis. This can be the case when:
- The scope of the matter is uncertain or may expand over time
- The work involves ongoing counseling, negotiation, or strategy
- The litigation is complex, and the required time is difficult to predict
In hourly matters, you are billed for the time spent on your case.
Hybrid Arrangements
In some matters, a hybrid fee structure may provide the best balance between affordability and alignment of interests. Under a hybrid arrangement, the client typically pays reduced hourly rates and a reduced contingency percentage if there is a successful recovery.
These arrangements can help reduce the client’s upfront legal costs while ensuring that both the lawyer and client remain focused on achieving the strongest possible outcome. Hybrid structures may be appropriate in matters where substantial work is required, but the client also wants the attorney to share in the risk and potential recovery.
Expenses and Case Costs
Attorney’s fees and case expenses are not always the same thing. Depending on the matter, there may be additional costs such as:
- Court filing fees
- Service of process
- Records, transcripts, or deposition costs
- Expert witness fees
- Other litigation‑related expenses
In contingency matters, the written agreement will explain how expenses are handled—for example, whether they are advanced by the firm and how they are repaid out of any recovery. In non‑contingency matters, the engagement agreement will describe how expenses will be billed and when they are due.
We want you to understand not only how attorneys’ fees work, but also how case costs may arise.
Fees in Severance and Employment Matters
For many employment matters, a flat fee may make sense when the work primarily involves reviewing documents, analyzing the situation, and providing practical advice. This often includes:
- Reviewing agreements or employment-related documents
- Explaining legal terms, risks, and restrictions
- Discussing potential claims, leverage, and strategy
- Advising on possible next steps
However, if the representation is expected to involve extended negotiations, significant pre-litigation work, litigation analysis, administrative claims, or ongoing advocacy, an hourly, contingency, or hybrid arrangement may be more appropriate depending on the circumstances and the client’s goals.
We discuss fee structures at the outset of the matter so clients understand how the representation will work and what arrangement makes the most sense for their situation.
Fees in Business Disputes and Other Litigation
For business disputes, legal malpractice claims, and other litigation matters, the appropriate fee structure depends on the nature of the case and the work likely to be required. Important considerations often include:
- The complexity and expected duration of the dispute
- The amount at issue and the relief being sought
- The likelihood, timing, and collectability of any potential recovery
In many litigation matters, hourly billing and a retainer are the most practical approach because of the amount of ongoing work and uncertainty involved. In some situations, however, contingency or hybrid arrangements may also be appropriate.
We discuss fee structures at the beginning of the representation so clients understand the expected scope of work, the likely costs, and how the engagement will be structured.
Frequently Asked Questions
Do you always work on contingency?
No. We use different fee structures depending on the type of matter. Some cases may be suitable for contingency billing, while others are better handled through flat‑fee, hourly, or hybrid arrangements.
Will I know the fee arrangement before I hire the firm?
Yes. We explain the proposed fee structure before representation begins so you can decide whether and how you want to move forward.
Are contingency fee agreements in writing?
Yes. Contingency fee agreements must be in writing and must describe how the fee and expenses will be handled.
Are case expenses separate from attorney’s fees?
They can be. In many matters—especially litigation—case expenses are handled separately from attorney’s fees. Your engagement agreement will explain how expenses are treated in your case.
Is severance agreement review usually handled on a contingency basis?
Sometimes, but not always. Some severance matters may be appropriate for a contingency or hybrid fee arrangement, particularly where there are significant potential legal claims or meaningful negotiations with the employer. In other situations, a flat-fee or hourly structure may make more sense, especially where the work is limited to reviewing the agreement and advising the client about the terms, risks, and available options.
Talk With Us About Your Situation
The right fee arrangement depends on the type of matter, the work involved, and your goals. If you are dealing with a severance agreement, an employment dispute, a business conflict, or another litigation issue, we can discuss the options and what representation may look like in your case.