Billing by the hour has been the primary billing method used by attorneys for a long time. In recent years, there has been a shift to offer flat-fee billing to clients. Under flat-fee billing, a client is told the total cost of their case prior to hiring the lawyer. This can be done in one of two ways: 1) Quoting a client one fee for the entire representation, no matter how complex the case gets, or 2) Quoting a flat fee that increases with the complexity of the case. Under option 2, the client still knows the most the case will end up costing, because the lawyer will explain the potential stages that the case may go through, and the fee associated with each case. For example, a criminal client may pay a flat fee of $1,000 if the case is resolved before being set for trial, or $2,000 if the case actually goes to trial. This information would be given to the client at the initial consultation, so the client will be well aware that going to trial will cost an extra amount of money. But the client still has the benefit of knowing that the case will not cost more than $2,000, regardless of what happens.
Client often prefer flat fee billing because it allows them to know exactly how much their case will cost from the beginning. Unlike hourly billing, where the cost is directly related to the amount of time the attorney works on the case, flat-fee billing eliminates the uncertainty of not knowing how much the case could end up costing. Flat-fee billing also reduces the number of instances in which a case ends up costing the client more than the client anticipated.
The one downside that clients often talk about with flat-fee billing is that the cost is the same, no matter how many hours of work the attorney spends on a case. In the example above, the criminal client pays $1,000 for the case if it gets dismissed at the first hearing, or if it takes several motions and hearings to achieve the same result. Some clients feel that if the case gets dismissed earlier in the process, the fee should be reduced. However, flat fee billing assumes that the outcome is worth the same to the client, regardless of when it is achieved. Stated another way, getting a case dismissed and off the client’s record should be worth a lot to the client, regardless of how much work it takes to get that accomplished.
Finally, some clients are concerned that flat-fee billing encourages the attorney to settle the case as quickly as possible. The theory is that the attorney will not want to put much effort into the case since the fee will be the same no matter how much work is done. You should be confident that I will zealously represent you and provide you with practical legal advise no matter which billing method you choose. The choice to settle a case, or to proceed to trial, is a choice that only the client can make. I will make sure that you have all the information necessary to make the best decision for your case, so that the best outcome can be achieved.