Legal Fees and other Definitions

Minimum Billing Increments – Lawyers who charge an hourly rate do so in minimum billing increments. Increments can be charged by the quarter hour, or per 15 minutes. Increments are rounded up. Therefore, if the lawyer charges a minimum billing increment of 15 minutes and spends 10 minutes reviewing a court document, the time is billed as 15 minutes.

Minimum Fee – A minimum fee is charged as part of a specific service. An example of a minimum fee is when a lawyer drafts a petitioner. There may be a minimum fee of $200 for the draft regardless of how long it takes to complete.

Payment Arrangements – Legal fees are usually paid through monthly payments. Other payment arrangements may be available depending on the lawyer.

 Retainer – Retainer fees are advance payment used towards hourly fees and other lawyer related costs. Lawyers will sometimes request a retainer to serve as a security deposit for future legal fees. Clients who have an established relationship with their lawyer or firm are less likely to be subjected to a retainer fee.

Written Retainer Agreements – Lawyers provide written retainer agreements that relay hourly fees and costs applicable to a specific case. The retainer agreement is legally binding once both parties have signed it. It does not mean the client cannot fire the lawyer. In return, the lawyer has the right to withdrawal from a case once the agreement has been signed.

Click here for an article about understanding legal fees.