Since the structure of payment to one’s attorney is created by contract, the number of different kinds of fee structures can be as vast as the circumstances merit. While the variations can be extensive regarding the method of calculating the costs of representation, there are still primarily three main types of attorney fee structures.
Litigation Costs —In addition to agreeing to the method of calculating attorney’s fees, agreements between an attorney and client will typically include provisions as to how costs will be paid. Costs in a litigation case include but are not limited to:
(a) filing fee to the court
(b) costs associated with serving the Defendants
(c) costs associated with discovery including depositions
(d) travel for attorneys
(e) paying expert witnesses, etc.
In addition, costs associated with enforcing a judgment against defendants can add up as well, including more filing fees for abstracts of judgment, filing fees for writ of garnishments, and fees for writ of executions. Litigation costs are sometimes fronted by a law firm in a contingency fee case, but reimbursed back to that firm before calculating the percentage of damages it receives on the back end.
Each case should be analyzed as to the needs of both the client and the law firm according to the specific circumstances. The parties can be creative in determining what will work out best for both sides, sometimes this includes combining a flat fee with hourly billing, flat fee with contingency, or reduced hourly billing with a reduced contingency fee percentage.
Jonathan Enright
Partner, San Antonio Office
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