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 Colorado, attorneys may charge clients using one of three common fee structures: hourly rates, contingent fees, or fixed fees. Hourly rates involve charging a set amount per hour of work performed on a client's case. A retainer or fee deposit may be required upfront to secure the attorney's services, which is held in a trust account and billed against as work is completed. Clients may need to replenish this deposit if it runs low. Contingent fees mean the attorney's payment is a percentage of the client's recovery in the case; this is common in personal injury and other civil litigation matters. If no recovery is made, the attorney typically does not get paid. Fixed fees are a set amount agreed upon for the attorney's services, regardless of the time spent, and are often paid at least partially in advance. Colorado attorneys are bound by the Colorado Rules of Professional Conduct, which provide guidelines on reasonable fees and the handling of client funds.