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 Montana, 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. 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. Fixed fees are a set amount agreed upon for the attorney's services, regardless of the time spent on the matter, and are often used for more predictable legal work. In all cases, the fee arrangements should be clearly outlined in a written agreement between the attorney and the client, and attorneys are required to manage and account for clients' funds according to the rules of professional conduct set by the Montana State Bar and applicable state laws.