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 New Jersey, attorneys may charge clients using one of three common fee arrangements: hourly rates, contingent fees, or fixed fees. For hourly rates, attorneys bill clients based on the actual time spent working on a 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 and fees accrue. Contingent fees involve the attorney receiving a predetermined percentage of the client's recovery in the matter, which means the attorney only gets paid if the client wins or settles the case. Fixed fees are set amounts agreed upon before the attorney begins work, and these fees may be required to be paid in part or in full upfront. New Jersey attorneys must adhere to the Rules of Professional Conduct, which govern fee arrangements and the handling of client funds.