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 North Carolina, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. For hourly billing, attorneys may require a retainer, also known as a fee deposit, to ensure payment for their services. This retainer must be replenished if it runs low, depending on the attorney's ongoing work. Any unearned portion of the retainer must be kept in a trust account until the attorney earns it through work performed. In the case of a contingent fee arrangement, the attorney receives a percentage of the client's recovery or settlement. Fixed fees involve a set amount agreed upon before the commencement of services, often with part or all of the fee paid upfront. If a fee dispute arises between an attorney and a client, the North Carolina State Bar offers fee dispute resolution services, which can be either optional or mandatory, to help resolve the issue.