The Flat Fee
by Bryan W. Wolford on 06/23/10
A flat fee, also known as a
fixed fee, for legal services is an up-front figure quoted to the client for
all of the legal work to be done. Flat fees are gaining in popularity in recent
years among small and medium sized firms, and are fast becoming the main alternative
to the billable hour. In contrast to a flat fee, the billable hour is a method
of calculating legal fees based on the hours worked by the attorney, usually
rounded to the tenth hour, multiplied by the attorney's stated hourly rate.
Many clients prefer a flat
fee to the billable hour because it provides them with a sense of predictability
for the costs of legal services. For the criminal law client, a flat fee
agreement typically covers the attorney's services from indictment to plea
negotiations to trial, if necessary. It allows the client to decide whether or
not to go trial based on what is right and just, rather than what they can
afford. Likewise, family law clients prefer to know up front how much it will
cost them to resolve their issue, even if it means going to trial.
A flat fee agreement also
puts the risk of a complicated case on the attorney. Because the attorney sets
his flat fee, it is his responsibility to accurately evaluate each client's
case and estimate the complexity of the case and the amount of work that will
likely be required. For the client paying by the hour, any work beyond the
attorney's estimate is billed to the client. For clients paying a flat fee, it
is the attorney who shoulders the burden. For this reason, many attorneys offer
hybrid flat fees, where the client pays a flat fee for legal services up to a
stated number of hours, and then pays an hourly fee for all additional hours.
This type of hybrid fee balances the risk of a complicated case more evenly
between the client and attorney.
Many costs and expenses are
often not included in a flat fee, and are therefore charged to the client. Such
expenses include court filing fees and costs, administrative costs, and costs
associated with trial like depositions and expert witness fees. Attorneys
clearly list what costs are and are not covered by the flat fee in their fee
agreements with the client.
At The Law Offices of Bryan
W. Wolford, we prefer the flat fee as our method of billing. We currently quote
flat fees for all of our family law cases, criminal law cases, traffic tickets,
wills and trusts, and for many of our civil cases like landlord/tenant law. We
think that the flat fee is the superior method of billing legal services as it
clearly informs the client of what they can expect to pay to resolve their
legal issues. However, we always give the client the option of selecting hourly
billing.
For more information about
having your legal issues resolved for a flat fee, please contact our office to
schedule your free and confidential consultation.
Bryan W. Wolford
Attorney At Law