There Are Different Methods to Account for Time and Effort
Attorneys have several different methods they use to account for their services when assisting clients. All of these methods are a way to convert time and effort into a cost figure. The main ways attorneys invoice are 1. Hourly, 2. Fixed or Flat, and 3. Contingency.
Hourly Billing and Advanced Fee Deposits
When we bill by the hour, we require an advanced fee deposit at the beginning of the representation. This deposit is placed into a special trust account called an Interest on Lawyers’ Trust Account (IOLTA).
An advanced fee deposit is:
- Your money
- Held in trust
- Applied only to work actually performed on your case
Funds remain client property until they are earned by legal work. As work is completed and invoiced, the corresponding amount is transferred from trust to the firm.
The starting advanced fee deposits are typically sized to fund the initial phase of representation, often the first several weeks of work. As a case progresses, additional deposits are usually required. We also expect clients to maintain a minimum balance in trust for any unexpected work, so that we can act without hesitation.
At Pacific Northwest Family Law, we avoid working without funds in trust. This policy protects clients from accumulating unpaid legal debt and prevents the kind of surprise billing that occurs when firms continue working without clear funding or communication.
Any unused funds remaining in trust at the conclusion of representation are returned to the client, generally using the same payment method by which they were received.
Flat or Fixed Fees for Defined Work
Because many legal matters evolve unpredictably, flat or fixed fees are used only when the scope of work can be responsibly defined in advance.
Flat or fixed fees are:
- Tied to a clearly defined scope of work
- Agreed upon in advance
- Designed to provide predictability when the work is reasonably foreseeable
These fees apply to tasks, not outcomes. If circumstances change or additional work is required beyond the agreed scope, further fees may be necessary.
Unlike hourly advanced fee deposits, flat or fixed fees are generally earned upon receipt, subject to refund if the agreed work is not completed as required by law and the engagement agreement.
Contingency Fee Matters
Another form of billing is contingency-based work, where an attorney’s fee is a percentage of a recovery or settlement, plus costs.
This structure is common in certain types of cases, such as personal injury or employment matters, where a monetary recovery is the primary objective.
Contingency fees are not permitted in family law matters and are not used for estate planning or probate administration. In limited circumstances outside family law, contingency arrangements may be considered when lawful and appropriate.