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 Minnesota, 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 agreed-upon hourly fee by the number of hours worked on a client's case. A contingent fee arrangement means the attorney receives a predetermined percentage of the client's recovery or settlement. Fixed fees involve a set amount for legal services, which is often paid in part or in full before the attorney begins work. When an hourly rate is used, attorneys may require a fee deposit, also known as a retainer, to ensure payment for their services. Clients might be asked to replenish this deposit as needed. Attorneys in Minnesota are obligated to keep unearned fee deposits in a trust account and can only withdraw from it once they have performed the corresponding legal work and are entitled to payment.