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 New Jersey, attorneys may charge clients using one of three common methods: hourly rates, contingent fees, or fixed fees. Hourly rates involve charging a set amount per hour worked on a client's case, and attorneys may require a retainer or fee deposit upfront to secure payment for future services. This retainer is kept in a trust account and is used to cover fees as the attorney earns them. 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. In the event of a fee dispute between an attorney and a client, the New Jersey State Bar Association provides fee arbitration as an optional service to help resolve the issue, which can become mandatory if initiated by the client. This process is designed to offer an alternative to litigation and to facilitate a fair resolution to fee disagreements.