Negotiating Legal Fees
Do you dare attempt to negotiate with your attorney? Isn’t that like trying to bargain with the devil? Depending upon the attorney, perhaps, but our constant motto here is NEGOTIATE EVERYTHING YOU CAN. And why should lawyers–who are oftentimes paid hundreds of dollars an hour for their ability to negotiate be immune?
If you already know how to find a lawyer, the trick to negotiating legal fees is not all that different from negotiating any professional services: it’s better to negotiate up front prior to retaining the professional’s services. Otherwise, what you’re really asking for is a write-off of debt. That’s bound to hurt your relationship. (Or be called a breach of contract by your attorney).
On the other hand, if you respectfully ask to negotiate items (including price) prior to retaining the lawyer’s services, then there should be no issue. Keep in mind that some lawyers will work with you and others will not. But either way, it probably won’t hurt to inquire as to whether you can negotiate some of the items below.
1. Price: You can perhaps request that the attorney utilize a different payment structure or even cut their hourly rate (note: the attorney will probably not cut their hourly rate). If hourly billing won’t work for you, then perhaps you can see if the attorney will entertain a contingency based fee arrangement. Fixed-fees for items such as real estate transactions are becoming increasingly popular as well. Make sure that if you do use a fixed fee arrangement, that you have an understanding of what triggers payment. For instance, some lawyers will not charge you until you close on your house as a buyer.
2. Retainer Size: Maybe the cost per hour isn’t as big of a concern as the size of the initial retainer agreement. If your attorney is requesting a $10,000 retainer agreement, then perhaps you can ask them to come down a few thousand dollars so you can afford the representation. Again, it likely won’t hurt to ask.
3. Additional Charges: See exactly what you will be billed for. Find out what the lowest billing metric used by the firm is. In addition, see if you will be billed for in-firm copies and faxes as well as paralegal work or only the work performed by attorneys.
4. Cut-Off Point: Perhaps you need to make it clear to the attorney that the case can’t go beyond a certain budget price-point. If the attorney better understands your budget, then they might have a better idea of how to go about handling your case.
5. Attorneys: If you’re not comfortable with other attorneys in the firm handling your work, then make sure the attorney understands you explicitly only want her or him on the case. It’s not uncommon for lawyers to work in tandem with other attorneys in their firm (using their associates to work on cases). If you’re not comfortable with that, or you want the “ok” prior to any work being delegated, then remember to simply say so up front.
6. Work You Can Complete: Perhaps you can arrange to do a lot of the work on the case yourself, with your attorney in more of an “overseer” or “advisory” role. This should keep your costs down and make sure you are an active participant in your own case.
7. Saturdays: Perhaps you can negotiate the attorney into meeting with you on Saturday or other “after-hours” times so that you won’t have to take off from work to meet with your attorney in person.
Conclusion
A lot of people find the idea of negotiating with their attorney taboo or simply stressful. But there’s really no reason why you can’t work out a mutually beneficial agreement with your attorney prior to their representation. In doing so, the parameters of the relationship should be better defined which may lead to a better working relationship all around. But remember, I’m not an attorney or an expert on negotiating with an attorney, so please consult with the proper experts.
Would you ever consider negotiating legal services? Have you ever attempted to negotiate legal fees in the past? If so, did you have any luck? What extra negotiable items would you include on this list?
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Hopefully I’ll never have to hire an attorney, but had no idea you could negotiate with them!
(I love the ‘Saturday’ tip!)
Good to know CNC!
Thanks MC. Yeah, hiring an attorney is one of those things you’d like to avoid, but sometimes it’s unavoidable!
I’m with MoneyCone in that my fingers are crossed against not having to seek out an attorney in the near future. But of course if this happens to be the case, it is all about how you pursue and choose your lawyer service representative, and ultimately the deal you both agree to, that makes the most difference on your overall cost in the long run. Learning to negotiate can be beneficial in so many occasions.
I think doing some of the work yourself is a great trip. Then you will also be more familiar with your entire situation and as you said, save some money along the way.
I have only used an attorney briefly and it was to draw up paperwork for when we sold our home by owner years ago. It was a great investment though. I think it cost me about four hundred dollars but saved me a ton of work. I didn’t even think to negotiate the fee though. Probably because he was a friend,and I knew I was saving a ton by not using a realtor.