Attorneys Fee

Attorney's fee is a chiefly United States term for compensation for legal services performed by an attorney lawyer or law firm for a client, in or out of court. It may be an hourly, flat-rate or contingent fee. Attorney fees are separate from fines, compensatory and punitive damages, and except in Nevada from court costs in a legal case. Surveys suggest that fees range from $150 to $1000 per hour when billed hourly. Under "the American rule" attorney fees are usually not paid by the losing party to the winning party in a case, except at the federal level or for specific statutory reasons. The phrase is a legal term of art in American jurisprudence in which lawyers are collectively referred to as "attorneys", a wording practice not found in most other legal systems. Attorney's fees or attorneys' fees, depending upon number of attorneys involved, or simplified to attorney fees are the fees, including labor charges and costs, charged by lawyers or their firms for legal services provided by them to their clients. They do not include incidental, non-legal costs e.g. expedited shipping costs for legal documents. Generally Nevada being an exception, attorney fees are tabulated separately from court costs, and are also separate from fines, compensatory and punitive damages, and other monies in a legal case not enumerated as court costs. The analogous concept has differing names and applicability in common law systems such as in most of the Commonwealth of Nations, and in civil law systems such as those of most of Europe and many former European colonies. For example, in a court case under English law, the fees of solicitors and barristers two types of lawyer are combined with court costs and various other expenses into a combined "costs", while non-court solicitor expenses may be separately billed as per-hour charges and those of barristers as daily brief fees. The losing party in a case in most common law systems pays for the costs including fees of both parties. State laws or bar association regulations, many of which are based on Rule 1.5 of the American Bar Association's Rules of Professional Conduct, govern the terms under which lawyers can accept fees. Many complaints to ethics boards regarding attorneys revolve around excessive attorney's fees. In some American jurisdictions, a lawyer for the plaintiff in a civil case can take a case on a contingent fee basis. A contingent fee is a percentage of the monetary judgment or settlement. The contingent fee may be split among several firms who have contractual arrangements amongst themselves for referrals or other assistance. Where a plaintiff loses, the attorney may not receive any money for his or her work. Many countries prohibit contingent fees as unethical. Most jurisdictions in the United States prohibit working for a contingent fee in family law or criminal cases. In the United States, an up-front fee paid to a lawyer is called a retainer. Money within the retainer is often used to "buy" a certain amount of work. Some contracts provide that when the money from the retainer is gone, the fee is renegotiated. This is to be differentiated between a retainer in Commonwealth states, where a retainer is the contract that is initially signed by a client to engage a lawyer. Money may or may not be paid up front, but the lawyer is still "retained". The range of fees charged by lawyers varies widely from one city to the next. Most large law firms in the United States bill between $200 and $1,000 per hour for their lawyers' time, though fees charged by smaller firms are much lower. The rate varies tremendously by location as well as the specific area of law practiced. Typically insurance defense firms have lower hourly rates than non-insurance firms, but are compensated by having steady, regular paying work provided. Locations like Salt Lake City will average $150 per hour for an associate's time on a basic case, but will increase for larger firms. Many surveys of hourly rates are done. The American Intellectual Property Law Association "AIPLA" commissions a survey of its members every 2 years and it publishes these in what it calls a "Report of the Economic Survey". The latest one is dated June 2007. Rates are collected for 14 geographic areas and by associate or partner. Many courts have followed the rates shown by these AIPLA surveys and they are highly-regarded for Intellectual Property litigation. The State Bar of Oregon and the Colorado State Bar also have published a survey of rates for various areas of Oregon and Colorado and these are available online. Perhaps the most widely followed set of rates are what is called the Laffey Matrix that is available from the United States Attorney's Office for the District of Columbia. These have been available since 1982 and are updated each year. The hourly rates are shown by years of experience. For June 1, 2006 to May 31, 2007 the rates are as follows: 20+ years of experience, $425 per hour; 11–19 years, $375; 8–10 years, $305; 4–7 years, $245; 1–3 years, $205; and Paralegals/law clerks $120. The Laffey Matrix appears to be growing in acceptance by many courts throughout the United States, but the matrix must be adjusted to account for higher or lower costs for legal services in other areas. Hourly rates are increasing almost every year and some lawyers charge substantially higher than the rates shown by the Laffey Matrix. The first American attorney to regularly charge a four-digit hourly fee $1000 and higher was Benjamin Civiletti in late 2005. With the ongoing recession of the 2000s, corporate clients began driving attorneys increasingly toward alternative fee arrangements, or AFAs. AFAs can include flat fees per matter, fixed fees for a "book" of matters, success bonuses, and other options beyond straight hourly billing.

Law Firm

A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise client’s individuals or corporations about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought.

In many countries, including the United States and the United Kingdom, there is a rule that only lawyers may have an ownership interest in, or be managers of, a law firm. Thus, law firms cannot quickly raise capital through initial public offerings on the stock market, like most corporations. In the United States this rule is promulgated by the American Bar Association and is adhered to in all U.S. jurisdictions, except the District of Columbia. The U.K. has a similar rule, but in recent years law firms have been able to take on a limited number of non-lawyer partners.

The rule was created in order to prevent conflicts of interest. In the adversarial system of justice, a lawyer has a duty to be a zealous and loyal advocate on behalf of the client, and also has a duty to not bill the client unreasonably. Also, as an officer of the court, a lawyer has a duty to be honest and to not file frivolous cases or raise frivolous defenses. A lawyer working as a shareholder-employee of a publicly traded law firm would be strongly tempted to evaluate decisions in terms of their effect on the stock price and the shareholders, which would directly conflict with the lawyer's duties to the client and to the courts.

Law firms are typically organized around partners, who are joint owners and business directors of the legal operation; associates, who are employees of the firm with the prospect of becoming partners; and a variety of staff employees, providing paralegal, clerical, and other support services. An associate may have to wait as long as 9 years before the decision is made as to whether the associate "makes partner." Many law firms have an "up or out policy" pioneered around 1900 by partner Paul Cravath of Cravath, Swaine & Moore: associates who do not make partner are required to resign and join another firm, go it alone as a solo practitioner, go to work in-house in a corporate legal department, or change professions burnout rates are very high in law.

Making partner is very prestigious at large or midsized firms, due to the competition that naturally results from higher associate-to-partner ratios. Such firms may take out advertisements in legal newspapers to announce who has made partner. Traditionally, partners shared directly in the profits of the firm, after paying salaried employees, the landlord, and the usual costs of furniture, office supplies, and books for the law library or a database subscription. Partners in a limited liability partnership can largely operate autonomously with regard to cultivating new business and servicing existing clients within their book of business. However, many large law firms have moved to a two-tiered partnership model, with equity and non-equity partners. Equity partners are considered to have ownership stakes in the firm, and share in the profits and losses of the firm. Non-equity partners are generally paid a fixed salary albeit much higher than associates, and they are often granted certain limited voting rights with respect to firm operations. The oldest continuing partnership in the United States is that of Cadwalader, Wickersham & Taft, founded in 1792 in New York City.

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