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 Dakota, 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 for each hour the attorney works on a client's case. A retainer, which is a fee deposit, may be required upfront to secure the attorney's services, and clients might need to replenish this deposit over time. Contingent fees mean the attorney receives a percentage of the client's recovery or settlement, aligning the attorney's compensation with the outcome of the case. Fixed fees are predetermined amounts agreed upon for specific legal services, often paid before work begins. Regardless of the fee structure, North Dakota attorneys are required to handle unearned fees ethically, holding them in a trust account until the fees are earned through work performed on the case.