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HOW LAWYERS CHARGE
Lawlist provides
information to users about Melbourne, Sydney and Brisbane Lawyers and how they will
charge. The law firms that LAWLIST refers you to through lawlist.com.au, charge
their clients in various ways, depending on the type of matter you have, the complexity
of the matter and a combination of many other factors. Whatever that basis, the law
firm must let you know how they will charge you up front, so that you have a clear
idea before significant costs and expenses are incurred avoiding unwanted surprises.
Solicitors charge in similar ways whether the lawyers are in Melbourne, Sydney, Brisbane,
Canberra, Adelaide or elsewhere.
The manner in which law firms charge vary slightly from state to state and are the
subject of various laws in each state and by the rules of various courts. That being
said, the main ways that law firms charge clients include: fixed fees, hourly fees,
no-win no-fee agreements or according to a particular court scale of fees.
Fixed fee agreements are a pre-agreed fee which you and the law firm agree to before
work starts. They are the total professional costs that will be charged to you for
the entire matter. They are a very common method of charging for such matters as a
home conveyance, drafting a Will or a Power of Attorney. Make sure you understand
the difference between professional fees on the one hand, and costs and outlays on
the other. A fixed fee for professional costs may not include the outlays incurred
on your behalf by the lawyer.
Hourly fees are a very common way of charging for most types of matters including
litigation, providing general advice or criminal matters. You will be charged an agreed
hourly rate which is generally based on the practitioners experience and expertise.
This type of billing has the benefit that you only pay for the time that is spent
on your matter.
No-win no-fee agreements are very common in personal injury type matters. Here, you
only pay your lawyer for professional fees if you are successful in your action. Most
firms offer these types of agreements for personal injury claims - so ask your lawyer
about this. Be aware that there may be some costs to pay for outlays incurred (for
example, medical reports) if you are unsuccessful in your action. Make sure you understand
the basis of what will be required to be paid by you from your lawyer before they
start your action. You should know that if you are unsuccessful in your claim you
may be required to pay the defendant's legal costs so see if the law firm is agreeing
to pay any professional costs awarded against you if you are unsuccessful. The fees
you pay in this type of agreement, will usually be higher than on a normal hourly
rate, due to the risk that the law firm is taking that it may never be paid for its
work and the risk it may have to pay costs awarded against you if you lose. In any
event, a contract setting out your obligations as to fees and costs will be given
to you by the law firm before they start an action on this basis.
The other main type of cost agreement, is based on scales of costs as set by different
Courts around Australia. Obviously, these types of agreements are generally used for
matters relating to disputes adjudicated by a Court, such as personal injuries, contractual
disputes, family law matters or intellectual property disputes. The scale of fees
and costs set by some Courts, will prescribe a certain fee for undertaking a certain
task, such as writing a letter, making a telephone call or taking instructions from
you.
No matter the basis your law firm will charge you, make sure you understand before
they start what this will be, how much they will charge you and who will be doing
the work - ask lots of questions! It is a lawyer's job to answer them and make sure
there are no misunderstandings.
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