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 Pennsylvania, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. An hourly rate is calculated by multiplying the attorney's hourly fee by the time spent on the client's case. A contingent fee arrangement involves the attorney receiving a predetermined percentage of the client's recovery or settlement. A fixed fee is a set amount agreed upon before the attorney begins work, and it may require upfront payment. When charging hourly, attorneys often request a fee deposit or retainer to ensure payment for their services, which may need to be replenished over time. Unearned fee deposits are held in the attorney's trust account until the work is performed and the attorney is entitled to payment. In the event of a fee dispute that cannot be resolved directly between the attorney and client, the Pennsylvania Bar Association provides optional fee dispute resolution services to assist in reaching a settlement.