Chapter Five: Fees and Billing Flashcards
attorney or paralegal hourly rate
Fee based on the attorney’s or paralegal’s level of expertise and experience in a particular area.
client hourly rate
Fee based on one hourly charge for the client, regardless of which attorney works on the case and what he or she does on the case.
blended hourly rate fee
An hourly rate that is set taking into account the blend or mix of attorneys working on the matter.
activity hourly rate
Fee based on the different hourly rates, depending on what type of service or activity is actually performed
contingency fee
Fee collected if the attorney successfully represents the client.
flat fee
A fee for legal services that is billed as a flat or fixed amount.
earned retainer
Term for the money the law office or attorney has earned and is entitled to deposit in the office’s or attorney’s own bank account.
unearned retainer
Monies that are paid up front by the client as an advance against the attorney’s future fees and expenses. Until the monies are actually earned by the attorney or law office, they belong to the client.
trust or escrow account
A separate bank account, apart from a law office’s or an attorney’s operating checking account, where unearned client funds are deposited.
cash advance
Unearned monies that are the advance against the attorney’s future fees and expenses.
retainer for general representation
Retainer typically used when a client such as a corporation or entity requires continuing legal services throughout the year
case retainer
A fee that is billed at the
beginning of a matter, is not refundable to the client, and is usually paid at the beginning of the case as an incentive for the office to take the case.
pure retainer
A fee that obligates the office to be available to represent the client throughout the time period agreed upon.
court-awarded fees
Fees given to the prevailing parties pursuant to certain federal and state statutes.
prepaid legal services
A plan that a person can purchase that entitles the person to receive legal services either free or at a greatly reduced rate.
value billing
A type of fee agreement that is based not on the time spent to perform the work but on the basis of the perceived value of the services to the client.
outside counsel
Term referring to when corporate and government law practices contract with law offices (i.e., outside of the corporation or government practice) to help them with legal matters, such as litigation, specialized contracts, stock/ bond offerings, and so forth.
criminal fraud
A false representation of a present or past fact made by a defendant.
time sheet or time slip
A record of detailed information about the legal services professionals provide to each client.
billable time
Actual time that a paralegal or an attorney spends working on a case and that is directly billed to a client’s account.
nonbillable time
Time that cannot be directly billed to a paying client.
pro bono
Legal services that are provided free of charge to a client who is not able to pay for the services.
overhead
General administrative costs of doing business, including costs such as rent, utilities, phone, and salary costs for administrators.
leveraging
The process of earning a profit from legal services that are provided by law office personnel (usually partners, associates, and paralegals).
