Legal Fees: What you need to know about your investment in legal services

As with many unexpected things in life, few prepare for legal fees. Legal fees can be high, even for what might seem like simple matters, and because of people’s financial situations, they may not be prepared. The other difficult reality with legal fees is that there is no guarantee of an outcome. Even with the most knowledgeable and skillful lawyer, there are times when a client might invest thousands or even tens of thousands of dollars into legal services and not get the resolution they desire. If you are embarking in resolving a legal dispute, here is some helpful information about your investment in legal services.

Long-term investment, rather than cheap shortcuts

Selecting your legal team is important, because where it might be tempting to “save costs”, it might end up being detrimental. While sometimes a limited scope retainer or one-off service might seem the economical route to go, the more people who touch your file at different firms, the more diluted your file might become. It might be difficult to understand what stage your matter is at, confidential information might be spread to more professionals than necessary, causing potential future conflicts of interest. Every professional you work with may only have a small picture of what happened and might spend additional time getting up to date on the file, costing you more money in the long run. Selecting a legal team to work with that will stick with you and see you through to the conclusion of your matter is a long-term investment, however, you may save more money doing it that way than paying for little pieces along the way.

Retainers

Some law firms ask for small retainers and will ask you to top up frequently. Other law firms may offer limited scope services, where you pay for a certain service, but the law firm isn’t taking full carriage of your file. Another way that some law firms interact is by asking for a larger retainer – the reason for this is to provide full legal services and support, and to avoid needing top ups to your retainer. This may help the client from falling behind on legal bills and prevent future disputes. When a client falls behind on legal bills, the law firm might stop providing legal services, send the client to collections, or perform other measures that might harm the client’s credit. It’s important to seek clarity regarding a retainer’s scope and understand the difference between a retainer and a quote. Quotes are hard to provide in legal services because they can be variable, and what might seem like a simple matter at the beginning, may become a bigger, more intense legal dispute the further along the process goes. Stay informed, ask questions, and remember what methods every firm uses, so you can find the billing model that works for you.

Billable Time

Some firms operate on flat fee models. This means that you can pay for a specific service without fully retaining the law firm or lawyer. Other firms offer legal coaching as an option. Legal coaching is a process that empowers the client to work on the file themselves, with legal support and guidance along the way. Another option that is common is fully retaining a lawyer to assist you with your legal dispute. This provides support and legal services for your matter to its conclusion. When someone has retained a lawyer, the lawyer will take instructions from the client and do the work needed on the file. The lawyer will provide itemized invoices showing the work that was done on the file. If there is an issue with what is recorded, the client can discuss that with their lawyer, and the lawyer will be able to explain the entries for greater understanding. The client and the lawyer are a team and keeping the lines of communication open throughout the process, as it will be in a fully retained situation, helps the client feel informed about what is happening on their file.

Legal fees and feeling stuck

Unfortunately, it is common for legal fees to be high and for it to feel like little to no progress is being made. Many lawyers charge on an hourly billing model. This means that every email, phone call, bit of research, and drafting show up on an invoice. Rest assured that each entry is a step closing to resolving your matter. Though the outcome is not guaranteed, your lawyer is working toward resolving things and hopefully there is a fair outcome that will be sustainable and workable for you moving forward. If you have uncertainty about an entry or feel frustrated, you can chat with your lawyer about what’s going on for you, and you can pause the process. It is likely that there will be many time entries before you get movement on your file, however, good and thorough work may be what your file needs and making that investment is important.

Legal fees and self-determination

Using a lawyer to help you resolve your legal dispute is an investment. Like any investment, it is important to make an informed decision. DIY methods or limited scope are options, however, if you want legal support, it is often helpful to retain a lawyer for full scope representation. If the least expensive option is your priority, DIY, legal coaching, or limited scope options might be what’s best for you. If you value having wise counsel, legal guidance, and a supportive professional assisting you throughout the process, making an investment in legal services might be what’s best for you. Remember that you can change your mind in either scenario – you have the right to self-determination, and other methods of resolution are also available to you, such as mediation or arbitration.

Summary

When making a large investment in anything, researching and thoroughly exploring all your options is important. The most expensive option might not be optimal, but the least expensive option might also not serve your needs. An investment in legal representation is an investment in your future, and in complex and confusing situations, having a wise and skilled lawyer can be an incredible asset. There are no guarantees of outcome though, so thinking about what you value most will be helpful in determining if you want to fully retain legal counsel, look into limited scope retainer options, or do it yourself with a bit of legal coaching to help you along the way.

If you want to discuss your options further, you can book a complimentary discovery call with our intake team – they will be able to discuss with you what your priorities are and set you up with the service that will work for you.

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