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 Montana, attorneys may charge clients using one of three common methods: hourly rates, contingent fees, or fixed fees. Hourly rates involve billing the client for each hour the attorney works on their case. A retainer or fee deposit may be required upfront to secure the attorney's services, which must be replenished as needed. Contingent fees mean the attorney receives a percentage of the client's recovery in the case, aligning the attorney's compensation with the outcome. Fixed fees are set amounts agreed upon before the attorney begins work, often paid in part or full upfront. Unearned fee deposits are held in a trust account until the attorney earns them through work performed. In the event of a fee dispute, the State Bar of Montana provides a fee arbitration program to help resolve such disagreements, which can be a voluntary or mandatory process depending on the circumstances.