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There are four usual methods of calculating legal fees: (A) Hourly fee arrangements, (B) Contingency fee arrangements, (C) Flat fee arrangements, and (D) Percentage fee arrangements. Hourly fee arrangements and charges depend on the circumstance of the case and the experience and expertise of the Arizona Lawyer. Under this arrangement, the client is generally responsible for the out-of-pocket expenses (filing fees, transcripts, sheriff's fees) as well as for the time spent performing the legal work (meetings, research, drafting documents, phone calls). Contingency fee arrangements are used primarily in personal injury and collection cases. They are not allowed in criminal or divorce matters. The Arizona Lawyer receives no fee unless money is recovered for the client. If money is recovered, the Arizona Lawyer receives an agreed-upon percentage of the recovery, generally ranging from 25 to 45 percent.

The percentage often depends upon the amount of work anticipated, the probability of recovery of witness fees, and the complexity of the issues involved. If there is an appeal, the percentage can be higher. Contingency fees can be compiled prior to the conclusion of the matter, and the client may be responsible for all out-of-pocket expenses such as filing fees and depositions. If an attorney is dismissed by the client prior to the conclusion of the matter, the client may be responsible for payment of a reasonable fee for services rendered by the attorney.

All contingency fee agreements must be in writing and signed by both the defense attorney and the client. In flat fee arrangements, the attorney will render a specific legal service to the client for a fixed sum of money. Criminal defense matters or the preparation of a simple will are often the subject of a flat fee arrangement. If there are unexpected complications which arise, it is sometimes necessary to modify such an arrangement. Percentage fee arrangements are sometimes used in the administration of an estate or in the selling or purchasing of a home. The fee would then be a fixed percentage of the estate or the value of the property being transferred.

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The client must pay the fees and expenses. In some DUI cases that go to court, the judge may award a partial or full fee to be paid by the opposing side. This does not release the client from the obligation to pay the attorney. Most cases require a retainer fee or deposit to apply to the Arizona Lawyer's expenses or future charges. Clients should expect to pay when they retain an attorney. The attorney will generally bill on a monthly basis and the client is expected to remain current. A contingency fee case is billed upon completion of the case, except for expenses which may have been incurred.

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DISCLAIMER:   The foregoing is not to be construed as legal advice to or for any specific individual. Always seek the advice of counsel for specific legal problems.

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