Highest Paid Lawyers and
Top Paid Attorneys

How are Lawyers Paid?

Hiring a lawyer can be very confusing and overwhelming for individuals who do not have any experience in the legal field. One of the main questions many individuals worry about is the cost of an attorney and how they charge for their work.

There are different ways lawyers typically bill their clients, including:

• Hourly fees: If a lawyer charges hourly fees, they charge based on the amount of hours of work they put into the case;
  • This is the most common type of fee and is used in both civil and criminal cases;
• Flat fees: Flat fees are an overall charge paid up front for the entirety of the legal representation;
  • This type of fee is usually employed when the services are more predictable, for example in criminal cases. A lawyer should explain exactly which expenses and services are included in the flat fee;
• Retainer fees: A retainer fee is an advanced payment, like a down payment, when the lawyer is charging an hourly rate;
  • The client’s retainer fee will be deposited into the attorney’s trust account and fees will be deducted as services are completed. If any amount of the retainer fee remains after the case is concluded, it is typically refundable;
• Statutory fees: A statutory fee is a fixed fee that is set by law or statute;
  • Certain types of legal work require a court to approve the fee; and
• Contingency fees: With this payment structure, the lawyer gets paid a percentage of the award won at trial or settlement.

What are Contingency Fees?

Most individuals have probably heard an advertisement for a lawyer who does not get paid unless they win a case. This is called a contingency fee.

With a contingency fee payment schedule, a lawyer will not charge their client a specific amount. Instead, the attorney will earn a percentage of the judgment awarded or the settlement amount.

Contingent means that the lawyer getting paid is dependent upon the outcome of the lawsuit. If the attorney does not prevail, they do not get paid. The majority of contingency fee arrangements provide that the lawyer will retain ⅓ of the judgment or settlement amount.

For example, if an individual is awarded $90,000, their lawyer would be entitled to ⅓ of this amount, or $30,000. The percentage the attorney will be paid can be negotiated depending upon the type of the claim.

It is important to note that, in certain types of cases, such as divorce, contingency fees are prohibited. Contingency fee arrangements are most commonly used in personal injury cases and employment cases.

Contingency fees may also be used in other types of cases, including:

• Real estate;
• Probate;
• Business litigation; and
• Other types of cases.

What Determines How Much a Lawyer Costs?

Although the services of an attorney are not typically free, there is a common misconception that the majority of individuals cannot afford them. In reality, legal professionals bill not only based upon the value of their services but also based on the needs of their clients as well as many other factors.

There are numerous issues individuals encounter when trying to choose the right attorney and cost is often one of the most important factors.

What Causes the Costs of Legal Representation to Vary?

There are many factors that cause the cost of legal representation to vary. An individual can expect a veteran lawyer in a large city to cost more than a new lawyer in a small town.

In addition to the location and expertise of the lawyer, other factors that cause the cost to vary may include the:

• Type of representation: The more complex the matter, the more likely it is to cost more for the lawyer’s services;
  • This is also true for otherwise routine, simple matters which are made complicated by aggravating factors or circumstances;
• Services performed: If a lawyer is performing multiple services, the overall cost of representation will likely increase;
  • However, an attorney may offer to bundle such services at a fixed cost, keeping the overall expense of representation comparatively low;
• Fee arrangement: The overall cost of representation will vary depending upon whether the attorney is:
  • billing on a contingency fee plus an hourly basis;
  • requires a flat fee;
  • is retained and advises when needed; or
  • has been hired as in-house counsel.

What are the Common Fee Structures in Different Areas of Law?

Lawyers typically use different fee structures depending upon the type of case they are handling. Examples of common legal areas and the fee structures which are normally used in those cases include:

• Injury or accident cases are typically billed on a contingency fee basis;
• Civil and Family law cases are usually billed on an hourly basis, which can vary greatly depending on the case and the lawyer;
  • It is more common for divorces to be handled on a flat fee basis;
  • Either way, a client can expect to pay a retainer fee;
• Criminal cases are typically paid by a flat fee up front;
• Routine cases are usually paid with a flat fee, for example:
  • drafting a will;
  • a real estate closing;
  • an uncontested divorce; or
  • getting a power of attorney.

Should Legal Fees be Discussed Before I Hire a Lawyer?

Yes, it is absolutely necessary for an individual to discuss legal fees before they hire a lawyer. It is important to remember that although a certain fee structure is chosen, there are additional unforeseen costs which may arise during a case.

It is important for an individual to understand which fee structure will be used and exactly what services are provided for the fees paid. If an individual is working with a budget, they can request that they be able to approve any costs over a certain amount in advance.

Should I Hire a Highest Paid Attorney?

In general, expertise is the factor that has the greatest influence over a lawyer’s hourly fees. As noted above, a lawyer who has been practicing longer will likely bill at a higher hourly rate.

This is because a more experienced attorney will have a more extensive grasp of the laws involved, will have built more relationships, and will be able to accomplish legal tasks more efficiently than a newly practicing lawyer. It is important to be aware that although an attorney charges a higher hourly rate, it may not result in more costs in the long run.

Another important factor in determining a lawyer’s hourly rate is their reputation. If the lawyer works for a larger, more reputable firm, they will likely bill at a higher hourly rate than a smaller, lesser known firm.

In addition, if a lawyer is known for representing a higher-end clientele, they may bill at a higher hourly rate than a lawyer with less notoriety. This does not indicate that the best paid lawyer is more capable than the other, simply that their practices are different.

Location is a very influential factor in the cost of a lawyer. As noted above, lawyers in larger cities will charge more than lawyers in smaller towns.

The area of law that the case involves will also influence the hourly rate. In some cases, a legal issue may require a lawyer who specializes in that area of law.

If this is the case, the attorney may have additional schooling or licensure in that area of law which allows them to charge a higher rate. For example, if an attorney specializes in intellectual property law, they are required to pass the United States Patent and Trademark Office (USPTO) registration exam in order to be registered as a patent attorney.

Whether to hire a highest paid attorney or a more budget friendly attorney is a very personal decision that only the individual themselves can make. It is most important to choose the attorney that the individual is most comfortable communicating with and whom they believe will be the best fit for their case and overall circumstances.