When faced with a legal issue, one of the first things you might think about as a businessman is how are you going to pay for an attorney? There are two or three traditional options and several more new and contemporary options that, in my opinion, often fit a client's needs much better. I will address each in turn.

Hourly Fees
This option is exactly as it appears. For every hour an attorney works for you, you are expected to pay an hourly rate. This is usually itemized out to six minute increments. The next natural question, then, is what's a reasonable hourly rate? The answer to this is, it depends.

First, as with any other product, you must research your options. Find out what is the fair market value for what you are buying. You can expect to pay more in large markets like Los Angeles, Miami, and New York City compared to what you might pay in, say, Mobile, Ala., or Milwaukee, Wis. Some lawyers like to bill at $850-$1,000 per hour, but unless you are a Rockefeller, QUALCOMM, or Sony, that is not what you should be paying. There are plenty of things in this world that I might be tempted to pay $1,000 an hour for, but none of them involves a lawyer. Keep that in mind while you are doing your research. You might expect fees between $200-$300 an hour if you are in southern Alabama, and hourly fees under $400 are reasonable in southern California.

The next reasonable question is: why the difference in rates for different firms/lawyers in the same town? This is answered in two parts.

First, there is the experience of the attorney which should come into play. A wet-behind-the-ears attorney should be charging much less than someone who has been in practice for, say, 15 or 30 years. This makes practical sense. A Young Turk, super-smart attorney will only charge you, say, $150 an hour. But it may take that lawyer four to five times longer to find the answer you need as compared to a veteran. The veteran, in contrast, should find the same answer in a much shorter time. To restate this theory, you should be paying the experienced lawyer the same or less for the same results compared to the super-smart Young Turk.

The second reason is simply market economics. Once a lawyer/firm becomes established, everyone knows he/they do good work. Then you, as the client, are paying not only for the experience, but for the premium branding that comes with a dependable product. You can save money going with a newer name but in exchange, in theory at least, you do not know exactly what you're getting.

The Contingency Fee
Here, an attorney will charge a percentage of the compensation a plaintiff receives if there is a recovery from the defendant. This sort of arrangement is more command the attorney goes after the bus company to get the money the plaintiff deserves. The law office will work with no money up front and wait until the case is resolved to get paid. Whether the case is settled through mediation or goes to trial before a judge may affect the fee percentage. The amount that someone might expect to pay will vary by region. In Miami, the average contingency percentage, the amount paid to the lawyer, is about 30-35%. In southern California, 33.3% is the traditional prelitigation rate, but that usually goes up to 40% if a lawsuit is filed. This type of fee agreement can and has been used in business disputes when the facts lend themselves to it.

About the Author, Frederick Gaston - http://www.gastonandgaston.com/frederick-gaston/
 Gaston & Gaston, A Professional Law Corporation - http://www.gastonandgaston.com