How do lawyers charge?

Cost is always going to be a concern when using legal services, and you may be wondering how lawyers charge?

First of all, solicitors have a professional duty to follow rules set down by the Law Society regarding their fees. These rules require solicitors to be upfront and honest about what they are charging clients. Solicitors do not take secret commissions, and must disclose all their fees. They must set out in writing at the outset how a client is to be charged, and should give the client a rough idea of what is likely to be involved in resolving that client’s problem. If in doubt, always ask, and if you don’t understand the answer then ask again. Never be embarrassed about doing this. You have a right to know.

According to the Law Society, your solicitor has a duty to keep you informed of costs and to give you a bill which clearly shows the work done, the dates between which the work was done, and the amount charged.

Solicitors usually charge by the hour for such tasks as interviewing clients, offering advice and drafting documents. They may have a daily rate for appearing in court or representing a client at a tribunal. They may also charge a range of standard fees for incoming and outgoing telephone calls and letters, writing wills and similar tasks. Where there is a set fee, always ask what it covers to make sure there are no extra costs.

These hourly rates and flat fees should be explained to you by your lawyer at the outset. Many legal jobs can be performed by paralegals, trainees and junior lawyers, who will charge less than partners. These fees vary from firm to firm.

Barristers are instructed by solicitors. Your solicitor should advise you how much this will cost and how it will benefit you prior to hiring.

Some solicitors work on a ‘no win, no fee’ basis. This means pretty much what it says on the tin—if you lose then you don’t need to pay your solicitor. These agreements are usually known as CFAs (conditional fee agreements). These generally work quite well, but some people have in the past been stung by unscrupulous operators. Be on your guard if cold-called, or approached in the street. There have even been instances where a client has won a case and ended up owing their lawyer more money than they won.

Such situations are easily avoided. If your solicitor suggests you sign a CFA then make sure of the following. First, the solicitor will claim for all of their fees and expenses from the opponent and not deduct them from any compensation you receive (don’t let anyone tell you this is not possible because it is clearly set out in law in the Access to Justice Act). Second, that the solicitor not you will be responsible for all ‘out-of-pocket expenses’ (these mean anything from telephone calls to medical costs). Third, that the solicitor will insure you against losing. Otherwise, you may have to pay your opponent’s legal costs and expenses even though you do not need to pay your own lawyer.

If you have concerns about the bill your solicitor presents once the work has been completed, then you can, in certain circumstances, ask for it to be checked by a court. This is known as assessment. It may also be possible to request a remuneration certificate from the Legal Complaints Service. The Law Society of England and Wales will be able to advise you further on this.

Ends