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 Minnesota, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. An hourly rate is a pre-agreed amount that is multiplied by the number of hours the attorney works on a client's case. A contingent fee means the attorney receives a percentage of the client's recovery or settlement, which incentivizes the attorney to obtain the best possible outcome. A fixed fee is a set amount agreed upon before the attorney begins work, and it is often paid in part or full upfront. When charging hourly, attorneys may require a retainer, which is a fee deposit that secures payment for future services. This retainer must be replenished if it runs low, according to the agreement between the attorney and the client. Unearned portions of the retainer are held in a trust account until the attorney earns them. In the event of a fee dispute that cannot be resolved directly between the attorney and client, the Minnesota State Bar Association provides fee dispute resolution services, which can be either optional or mandatory, to help resolve the issue.