Attorneys generally charge their clients in one of three ways: (1) an agreed hourly rate, times the number of hours the attorney spends on the matter; (2) a contingent fee, in which the attorney receives a percentage of the amount recovered or received by the client in the matter; or (3) a fixed-fee in which the attorney charges an agreed amount (often with some or all of the fee paid before work begins). If the attorney is charging on an hourly basis, he may require a fee deposit (sometimes called a retainer) to secure payment of the hourly fees. The client may be required to replenish this fee deposit. The attorney must hold the unearned fee deposit in her trust account until she does the work and is entitled to some or all of the payment. If there is a fee dispute between the attorney and client, and the attorney and client are unable to resolve the dispute, many state bar associations offer optional (and sometimes mandatory) fee dispute resolution procedures.
In Massachusetts, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. Hourly rates involve charging a set amount per hour of work performed, and attorneys may require a retainer or fee deposit upfront to secure payment for future services. This deposit must be replenished if it runs low. Contingent fees mean the attorney receives a percentage of the client's recovery in the case, aligning the attorney's compensation with the outcome of the matter. Fixed fees are predetermined amounts for legal services, often paid partially or fully in advance. Unearned fees must be kept in a trust account until the attorney has earned them. In the event of a fee dispute, the Massachusetts Bar Association provides fee dispute resolution services to help resolve disagreements between attorneys and clients. These services can be optional or mandatory, depending on the circumstances of the dispute.