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.
In Arizona, attorneys may charge clients using one of three common fee structures: hourly rates, contingent fees, or fixed fees. An hourly rate is calculated by multiplying the agreed-upon hourly fee by the number of hours the attorney works on the client's case. A contingent fee arrangement involves the attorney receiving a predetermined percentage of the client's recovery or settlement. Fixed fees are set amounts agreed upon before the attorney begins work, and these fees may be required to be paid in part or full upfront. When an attorney charges by the hour, they may ask for a fee deposit, also known as a retainer, to ensure payment for their services. Clients might be asked to replenish this deposit over time. It is important to note that attorneys in Arizona are required to keep unearned fee deposits in a trust account and can only withdraw from it once they have performed the corresponding legal work.