Need a Lawyer? Judge for Yourself
Going through a divorce? Launching
a business? Hurt in a car accident? Writing a will?
Facing a lawsuit? In any of these situations, you may
consider hiring a lawyer to advise you or represent
your interests. The Federal Trade Commission (FTC) offers
the following advice to help you be smart when you choose
— and use — legal representation.
Know Who
You're Dealing With
Many lawyers specialize in a particular
area of the law. Be sure your attorney has relevant
experience. An attorney who regularly drafts wills may
not be the best choice to represent you in a courtroom
if the subject is an auto accident. If family, friends
or co-workers have hired a lawyer for a similar reason,
ask them for recommendations. If not, check with your
state and local bar associations. Some groups offer
lawyer referral services for their members.
Do Your Research
Try to talk with more than one lawyer
before you choose the one to represent you. But find
out if you will be charged for an initial meeting. Be
prepared to describe your problem in a brief, clear
summary. Ask the various lawyers about their experience,
their fees, what your options might be, your chances
of success, who will do the work, and when the problem
might be resolved.
Know The
Real Deal
Once you decide to hire a lawyer,
be sure you understand what you've both agreed to. How
often will the lawyer update you? What information will
you be required to provide? Do you understand all your
options? What will the total cost be? If you're not
clear on exactly what the lawyer is doing, ask for clarification.
Although your chances of success can't be guaranteed,
discuss approaches to your case. You should be comfortable
with your lawyer's approach to your case. Be up front
with your lawyer on all the facts and circumstances
surrounding your situation. You may want to get the
agreement with your lawyer in writing.
Fees and
Costs
Before any work begins, ask what
the cost will be for the lawyer's services and whether
you will be responsible for other fees and charges.
State ethics rules require lawyers to charge a reasonable
fee. The American Bar Association advises that lawyers
explain their fees, preferably in writing, within a
reasonable time after beginning to represent you. And
some state bars require that lawyers put their fees
in writing before they take a case. Your lawyer may
charge you extra for copying documents, courier services,
court filing fees, or research services. Be sure you
understand what you will be charged for and how much.
Payment Arrangements
Remember the most expensive lawyer
is not necessarily the best one for you. Nor is a "bargain"
rate always a great deal. Look for the best balance
of experience and cost. You may want to ask your lawyer
if a junior lawyer or paralegal can perform some of
the work to lower your costs. You also may want to ask
if there are tasks you could perform yourself to save
time and money. For example, you might be able to copy,
pick up or deliver certain documents. A lawyer may charge
you a flat fee for a particular service or offer alternative
methods of payment. Each has benefits and risks.
Contingency
fees. A contingent fee arrangement means that
your lawyer gets a percentage of whatever money you
receive as resolution of your case. If you receive
no money, then your lawyer collects no fees. However,
you may owe charges for court fees, copying, and hiring
expert witnesses. If you have very little money to
pay hourly fees, it may be appropriate to negotiate
a contingency fee with your lawyer. But before agreeing
to a contingent fee, consider that:
- The size of a contingency fee, usually a percentage
of any money you receive to resolve the case, is
always negotiable. Sometimes you can negotiate a
sliding scale fee (for example, 30 percent of any
recovery up to $10,000; 20 percent of any recovery
up to $50,000, etc.). Remember that there's no particular
percentage of a consumer's recovery that constitutes
a "standard" or "official" fee.
- The size of the contingency fee should reflect
the amount of work that will be required by the
attorney. Some cases are straightforward; others
can be novel or uncertain. You may want to ask whether
the case is likely to settle quickly and whether
government agencies will gather significant amounts
of evidence. A fee arrangement sometimes can be
negotiated with a lower percentage for a quick settlement
and a higher percentage if it goes to trial. Be
sure you know exactly what is covered in your agreement.
Your state also may have rules about maximum contingency
fees; check with your state's bar association.
Flat fee. You
pay the lawyer a set dollar amount for a particular
service, like writing a will. If the matter is simple
and straightforward, say, an uncontested divorce or
a simple bankruptcy filing, many lawyers often charge
a flat fee. Be sure to find out exactly what the flat
fee includes.
Hourly
rates. The lawyer charges a set fee per hour.
Your final cost will depend on how long it takes to
complete your work. Hourly rates vary according to
a lawyer's expertise and experience. An experienced
lawyer may charge a higher hourly rate but may complete
the work more quickly. Because the hours worked on
your case can add up quickly, you should ask for a
written estimate of the number of hours necessary
to complete your case to get an idea of what your
final bill might amount to.
Retainer.
Your lawyer may ask you to pay a fee up front. A lawyer
can use this fee — often called a retainer —
as a down payment on expenses and fees. It is important
to review your account from time to time to understand
how your money is being spent.
Public
Legal Services. Depending on your financial
situation, you may qualify for free or low cost legal
services through special organizations. For example,
you may be eligible for free representation in landlord-tenant
or divorce cases. Look in your local telephone directory
for legal services organizations or legal clinics
associated with accredited law schools.
Pre-paid
legal plans. Some organizations offer pre-paid
legal plans that work like an insurance policy. In
exchange for a monthly fee, you receive certain legal
services as you need them. However, the fees charged
and the services covered vary with each state's law
and the particular plan. Check out any plan carefully
to be sure you know what's covered and whether it
makes sense for your situation.
Keep Good
Records
Chances are your lawyer will ask
you for documents that relate to your case. Keep copies
if you give your lawyer the originals. Ask for copies
of all other important documents. When you get a bill
from your lawyer, review it carefully and ask about
any charges that are unclear to you.
Class Actions
In a class action, a court decides
that a group of people — a class — may have
been harmed in a similar way. You may receive notices
asking whether you want to be part of the lawsuit. Read
the notice carefully. If you take no action, you typically
become a member of the class by default. If that's the
case, you are bound by the outcome of the class action
lawsuit; you can't bring your own case; and you won't
have direct control of the lawsuit. But you could raise
some objections about any settlement or the amount of
the attorney's fees. Should you choose not to become
a member of the class, you preserve the right to bring
your own case and control it directly. But you'll have
to hire — and pay for — your own lawyer
and you won't share in any benefits that may be won
in the class action.
Service
If you're not happy with the work
your lawyer has performed on your behalf, you may fire
him or her at any time. In some kinds of cases, you
may need the permission of a judge to do this. Weigh
the costs and benefits of starting over with a new lawyer.
Your case may be delayed and could cost you more. Lawyers
are subject to state ethics rules and are required to
charge reasonable fees; if you think your lawyer didn't
treat you fairly, represent you adequately, or charged
you too much, communicate with him and try to work out
some resolution. If trying to resolve the matter directly
with your lawyer is unsuccessful, consider filing a
complaint with your state or local bar association.
In some states, arbitration is available to mediate
such disputes. Remember that if you are satisfied with
the work your lawyer has done for you, communicate that
message, too.
|