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High legal fees!!!!!

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ajfarms1

Member
What is the name of your state (only U.S. law)? texas
I had a friend recently crippled in an auto accident. Every single firm he consulted asked for a very high percentage of what he will get to survive the rest of his life on. Please help me understand why a lawyers financial needs are equal to or greater than a person that probably will never work again. Does not seem fair.
 


quincy

Senior Member
What is the name of your state (only U.S. law)? texas
I had a friend recently crippled in an auto accident. Every single firm he consulted asked for a very high percentage of what he will get to survive the rest of his life on. Please help me understand why a lawyers financial needs are equal to or greater than a person that probably will never work again. Does not seem fair.
I am not sure that a lawyer's financial needs are necessarily equal to or greater than anyone else's needs (although after graduating from law school, most will have hefty education loans to repay).

But it is a misperception that all lawyers are wealthy. It makes a big difference what field of law one decides to enter.

With that said, there is an awful lot in life that is not fair. I personally think that teachers are underpaid and movie stars are overpaid. It is what it is, ajfarms1.

I am sorry to hear about your friend.
 

ecmst12

Senior Member
A contingency fee is typically 33-40% depending on whether it goes to court or not. And in a complicated/large case, it's usually well worth it. Hopefully there is sufficient coverage available to compensate him for his injuries.
 

Ohiogal

Queen Bee
I am not sure that a lawyer's financial needs are necessarily equal to or greater than anyone else's needs (although after graduating from law school, most will have hefty education loans to repay).

But it is a misperception that all lawyers are wealthy. It makes a big difference what field of law one decides to enter.

With that said, there is an awful lot in life that is not fair. I personally think that teachers are underpaid and movie stars are overpaid. It is what it is, ajfarms1.

I am sorry to hear about your friend.
Things lawyers are responsible for in addition to their personal living expenses:
1) Malpractice insurance -- this increases every year regardless of whether you have any claims;
2) CLE credits -- need 24 or so every two years and they can cost $50-100 a credit;
3) Office rent -- that nice conference room and office you go to costs money;
4) Utilities for the office -- water, telephone, electric, gas, internet, cell phone;
5) Employee pay/benefits -- that receptionist that greets you gets a salary plus medical and other benefits;
6) Expert fees -- personal injury usually requires consultations with doctors and such in order to get an expert to testify and that costs money;
7) Storage fees -- those files we open on clients? We have to keep them for at least several years past the close of a case and because of the fact our offices normally don't have huge basements, many rent a storage locker just for files;
8) ABA/state/local bar fees -- many times these can be $1000 a year when you add them all up but they are a necessary evil due to the benefits that may accompany them (discounts on insurance, CLEs, ancillary services);
9)Law library memberships -- unlike normal libraries, there are fees to be able to use or borrow things from the law libraries;
10) LEXIS/Westlaw fees -- you can pay a monthly charge (sometimes $500 to $1000 for just a small firm -- 1 to 5 attorneys) or a per search charge (a couple dollars) in order to find caselaw and shepherdize it;
11) Health insurance -- someone pays for it and it comes out of fees collected.

Now if the attorney is not in a fancy office (works out of their home or the cloud) then they may not have all of those expenses but they almost definitely have 1, 2, 4(to a certain extent), 8 and/or 9 and/or 10 at a minimum. Certain things are almost definite. The bigger the firm the higher the costs. So yes, attorneys have lots of expenses in addition to personal expenses (the average attorney has $100k in student loans then include housing, food, clothing -- suits are almost a uniform that courts expect and they are not cheap, and all the expenses other people have).
 
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quincy

Senior Member
Things lawyers are responsible for in addition to their personal living expenses:
1) Malpractice insurance -- this increases every year regardless of whether you have any claims;
2) CLE credits -- need 24 or so every two years and they can cost $50-100 a credit;
3) Office rent -- that nice conference room and office you go to costs money;
4) Utilities for the office -- water, telephone, electric, gas, internet, cell phone;
5) Employee pay/benefits -- that receptionist that greets you gets a salary plus medical and other benefits;
6) Expert fees -- personal injury usually requires consultations with doctors and such in order to get an expert to testify and that costs money;
7) Storage fees -- those files we open on clients? We have to keep them for at least several years past the close of a case and because of the fact our offices normally don't have huge basements, many rent a storage locker just for files;
8) ABA/state/local bar fees -- many times these can be $1000 a year when you add them all up but they are a necessary evil due to the benefits that may accompany them (discounts on insurance, CLEs, ancillary services);
9)Law library memberships -- unlike normal libraries, there are fees to be able to use or borrow things from the law libraries;
10) LEXIS/Westlaw fees -- you can pay a monthly charge (sometimes $500 to $1000 for just a small firm -- 1 to 5 attorneys) or a per search charge (a couple dollars) in order to find caselaw and shepherdize it;
11) Health insurance -- someone pays for it and it comes out of fees collected.

Now if the attorney is not in a fancy office (works out of their home or the cloud) then they may not have all of those expenses but they almost definitely have 1, 2, 4(to a certain extent), 8 and/or 9 and/or 10 at a minimum. Certain things are almost definite. The bigger the firm the higher the costs. So yes, attorneys have lots of expenses in addition to personal expenses (the average attorney has $100k in student loans then include housing, food, clothing -- suits are almost a uniform that courts expect and they are not cheap, and all the expenses other people have).
I don't at all dispute that attorneys can have many expenses. But in many jobs and professions there are expenses that equal those of attorneys (including professional fees and memberships, student loans, health insurance costs, office costs, etc) and these often must be handled without the higher pay that some attorneys get.

That said, I would not want anyone but a well-trained plumber messing with my house's plumbing problems, or a well-educated teacher educating my children, or a well-educated and well-trained neurosurgeon operating on my brain - and I would not want anyone but an experienced attorney handling my legal needs, especially if the legal needs were criminal in nature.

In that respect, I agree with OhioRoadwarrior, that an attorney will charge what the market will accommodate.
 
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Ohiogal

Queen Bee
I don't at all dispute that attorney's have many expenses. But in many jobs and professions there are expenses that equal those of attorneys (including professional fees and memberships, student loans, health insurance costs, office costs, etc) and these often must be handled without the higher pay that some attorneys get.

That said, I would not want anyone but a well-trained plumber messing with my house's plumbing problems, or a well-educated teacher educating my children, or a well-educated and well-trained neurosurgeon operating on my brain - and I would not want anyone but an experienced attorney handling my legal needs, especially if the legal needs were criminal in nature.

In that respect, I agree with OhioRoadwarrior, that an attorney will charge what the market will accommodate (and the attorney would be silly not to). ;) :)
I would say doctors probably have similar expenses. And higher pay? Really? What do you think an average attorney makes? Most earn $45-60k. Which is NOT a lot based on the education and such.
 

quincy

Senior Member
I would say doctors probably have similar expenses. And higher pay? Really? What do you think an average attorney makes? Most earn $45-60k. Which is NOT a lot based on the education and such.
That is what I said in my first post. ;)

Many (probably most) attorneys do not make what the average consumer may think they make. Not all attorneys are wealthy. That is a common consumer misperception.

However, attorneys are not alone in having expenses that can stretch their incomes, and some people must stretch their lower incomes to cover the same type of expenses that an attorney may have. Some jobs and professions are just valued more than others in the marketplace. In that respect, I agree with OHR.

But I am not arguing with anything you wrote, OG. In fact, you have spelled out nicely why some attorney fees are what they are. :)
 

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