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 Pennsylvania, attorneys typically charge clients using one of three fee structures: hourly rates, contingent fees, or fixed fees. An hourly rate is calculated by multiplying the agreed-upon hourly fee by the number of hours the attorney works on the client's case. A contingent fee arrangement means the attorney receives a predetermined percentage of the client's recovery or settlement. A fixed fee is a set amount agreed upon before the attorney begins work, and it is often paid in part or in full upfront. When an attorney charges by the hour, they may require a fee deposit, also known as a retainer, to ensure payment for their services. Clients might need to replenish this deposit over time. Attorneys in Pennsylvania are obligated to keep any unearned fee deposits in a trust account and can only withdraw from it once they have performed the corresponding legal work and are entitled to payment.