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Plain-language fee glossary

Flat, contingency, hourly, retainer, costs - what each word actually means when it appears in a legal bill.

The language on a legal bill is half English and half legacy from the days of vellum and Latin. Here is the same vocabulary, in the words a client would actually use.

Flat fee

One number for the whole matter. Agreed at hire, written in the engagement letter. No surprises later. Best for matters where the work is predictable - most criminal cases, uncontested divorces, immigration filings, deeds.

Contingency

The lawyer is paid a percentage of the recovery, and only if there is a recovery. No money up front. The percentage is fixed at hire and depends on whether the case settles before suit, settles after suit, or goes to trial. Standard for personal-injury cases.

Hourly

The lawyer bills for time spent on the case, in small increments (usually one tenth of an hour - six minutes). Best for litigation whose course is hard to predict. Comes with monthly statements.

Retainer

Money paid up front and held in the lawyer’s trust account. The lawyer draws against it as work is performed. Any unused balance is refunded at the end. A retainer is not a fee - it is a deposit.

Costs (or "case expenses")

The money the lawyer spends to run the case - court filing fees, expert witnesses, investigators, copies, mileage, deposition transcripts. These are billed separately from the fee, itemized, and either paid as they come up (hourly cases) or reimbursed from the recovery (contingency cases).

Closing statement

The final accounting in a contingency case. Shows the gross recovery, the lawyer’s percentage, each cost item, and the net to the client. The client signs it. Every dollar is on one page.

Bring this glossary to your first consultation. We will mark up the section that applies to your case before you sign anything.

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