Fairy billing is a simple concept. Instead of ordering legal services on the basis of hourly billing and without a fixed budget, with flat billing, your lawyer agrees to pay fixed project fees in advance. In general, the lawyer assesses how long the project will last, multiplies the number of hours estimated by their hourly rate, perhaps add a little buffer for the unknown and, presto, there are the flat fees. If it takes a little less time or much more time, you only pay the package, provided the project stays within the original planned amount. Reality, with the exception of a few small projects (example. B a founding solo training) with few moving parts and without negotiation with third parties, most of the company`s legal projects are difficult to implement over time. We are working on $1 million worth of ATM contracts, for which the client spends $8,000 and others for which the client spends $25,000. We can assure you that the difference is not that we sometimes decide to do a lot of unnecessary work. Partnership and development agreements, capital raising, joint ventures and even partnership agreements, if implemented correctly, are unique projects that require important tailored advice and work. They also lead to important negotiations with third parties. And customers have very different needs and desires.
Beyond very simple transactions, the time we spend on projects varies considerably, and the higher costs for one research and development agreement compared to the other are quite understandable in the context. Most lawyers are also writing hourly fees and flat-rate agreements and require a client`s signature. If your lawyer does not voluntarily provide a written fee agreement, you should either insist on one or hire another lawyer. Counsel X`s fee agreement is unethical, since his fee agreement provided for a “non-recoverable custodian” for the payment of legal services prior to trial, which cannot be done by a non-recoverable babysitter after PEC 611 notice. In addition, Lawyer X levies another “non-refundable” judicial fee. Counsel Y`s fee agreement is unethical because the lump sum fee is reimbursed when the representation is not or is not essentially concluded.