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 North Carolina, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. For hourly rates, clients are billed based on the actual time the attorney spends working on their case, often requiring an upfront fee deposit or retainer. This retainer is held in a trust account and is used to secure payment for future work. Clients may need to replenish this deposit as the case progresses. Contingent fees involve the attorney receiving a predetermined percentage of the client's recovery or settlement, aligning the attorney's compensation with the outcome of the case. Fixed fees are set amounts agreed upon before the attorney begins work, and these can be paid in full or in part upfront. The specific arrangements for fees and retainers are subject to agreement between the attorney and client and must comply with the North Carolina State Bar rules and ethical guidelines.