We all ask the same question when hiring a lawyer: how much is it going to cost? The fear of high-priced lawyers in the popular culture (especially TV) can be overwhelming. Yet, the lawyer fees may be not as scary as one suspects. It all depends on the type of the case and... whether there is a cost-agreement or not.
The safest lawyer fees are in the form of the cost-agreement. This means you and your legal representative agree on the pricing method. The most common methods to calculate the lawyer fees are:
The costing agreement is the safest but not necessarily the cheapest form of the payment. It is ok not to enter into the cost agreement but then, your payment will be determined by the appropriate statutory scale. The statutory scale sets the minimum lawyer fees. It also determines the court costs, should the matter reach the courtroom.
The conditional lawyer fees are popular method of payment in recent times.
Essentially, part or all of the professional costs are subject to the successful outcome of the case.
The court fees remain unchanged though.
The conditional lawyer fees may have a form of "no win no payment" or "uplift fee".
The former expects no fees for the lost case, the latter gets higher fees for the winning outcome.
Not all legal cases can use the conditional lawyer fees.
Australian law does not permit conditional lawyer fees for criminal proceedings and some family court cases.
What happens if the lawyer fees are too high? You may or may not come into the cost agreement with your lawyer. However, you have the right to contest the fees. Generally, tribunals handle the matter in Australia. For example, in Victoria the Victorian Civil and Administrative Tribunal (VCAT) deals with legal costs agreements.
Practitioner Remuneration Order describes in detail fees and charges for legal professionals.
It also deals with court costs.
The high profile firms will almost exclusively be more expensive then costs set in the Remuneration Order.
On average you can expect about $40 per hour to be a reasonable charge.
However, different types of cases require different charges.
Preparation of documents is often priced per item rather than hour.
If you get into the cost agreement with your lawyer then you must pay the agreed amount.
Even if the cost is higher than that in the Remuneration Order, you are still bound to the contract.
Only the inappropriate behaviour of the legal firm can nullify the contract.
Things like the lack of disclosures towards: additional costs, client's right to negotiate, legal avenues for cost disputes, etc can release the client from contractual obligations.
Lawyer fees, same as charges for any other service, are subject to civil complaints.
However, legal service is also scrutinised and has to follow strict legal procedures.
Lawyers can sue clients for unpaid bills.
However, clients can sue lawyers for incompetence.
Most complaints against lawyers (below $25K) are treated as civil complaints.
Here, the Legal Services Commissioner may interfere to settle the matters.
As for the unpaid fees, the Tribunals decide on the outcome.