Attorney Fees and Legal Costs Flashcards
7 cards from real Accident Lawyer Tips practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Attorney Fees and Legal Costs flashcards as text
What does the term 'pro bono' mean in the context of legal services?
Answer: Legal services provided free of charge or at significantly reduced cost
Pro bono refers to legal work performed voluntarily at no charge, typically for clients who cannot afford legal representation.
How do most contingency fee agreements typically handle the cost of obtaining medical records?
Answer: The cost is typically included in case expenses and deducted from the final recovery
Medical record retrieval costs are generally treated as case expenses advanced by the firm and deducted from the settlement or award along with other costs.
What is a 'fee dispute' between a client and their accident attorney?
Answer: A disagreement between the client and attorney regarding fee amounts or charges
A fee dispute arises when a client disagrees with their attorney about the amount charged or the application of the fee agreement, which can be resolved through negotiation or state bar arbitration.
What is the primary purpose of a law firm's IOLTA (Interest on Lawyers' Trust Accounts) account?
Answer: To hold client funds separately from the firm's own operating funds
An IOLTA account holds client funds — including settlement proceeds — separately from firm operating funds to protect clients and comply with legal ethics rules.
Under what circumstance might an attorney ethically charge a higher contingency fee percentage?
Answer: When the case is highly complex or has a low probability of success
Higher contingency fees may be ethically justified when a case involves significant complexity, legal risk, or a low probability that the attorney will ultimately be compensated.
What is the appropriate first step if you believe your attorney is charging unauthorized or excessive fees?
Answer: Request an itemized billing statement and discuss the discrepancies directly with your attorney
Requesting an itemized statement and addressing concerns directly with your attorney is the proper first step; unresolved disputes can be escalated to state bar fee arbitration.
What is the key distinction between attorney fees and case costs in a personal injury settlement?
Answer: Attorney fees are the lawyer's compensation for services, while case costs are litigation expenses like filing and expert fees
Attorney fees represent compensation for the lawyer's professional services, while case costs are the out-of-pocket expenses incurred during litigation such as filing fees, deposition costs, and expert witness fees.