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 Illinois, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. An hourly rate is a pre-agreed amount that the attorney charges for each hour spent working on the client's case. A contingent fee arrangement means the attorney receives a predetermined percentage of the client's recovery or settlement. This type of fee is common in personal injury cases and other litigation where the client seeks monetary damages. A fixed fee is a set amount that the attorney and client agree upon before the commencement of legal services, which is often used for more predictable legal work. When an attorney charges by the hour, they may require a fee deposit, also known as a retainer, to ensure payment for their services. This retainer may need to be replenished over time. It is important for the attorney to keep any unearned portion of the retainer in a trust account and only withdraw funds as they are earned through work performed on the case. Illinois attorneys are bound by the Illinois Rules of Professional Conduct, which provide guidelines on proper handling of client funds and fee arrangements.