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 York, attorneys may charge clients using one of three common fee arrangements: hourly rates, contingent fees, or fixed fees. Hourly rates involve billing the client for each hour the attorney works on their 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. The unearned portion of the retainer must be kept in the attorney's trust account until the work is performed and the attorney is entitled to payment. Contingent fees mean the attorney receives a percentage of the client's recovery in the case; this is common in personal injury and other litigation matters. Fixed fees are set amounts agreed upon before the attorney begins work, and often part or all of the fee is paid in advance. New York attorneys are bound by the New York Rules of Professional Conduct, which provide guidelines on reasonable fees and handling of client funds.