Minimum-fee schedules are used as a means of setting fees. It provides clients and members of the legal profession with information regarding schedule of charges for various legal services. Compulsory minimum-fee schedules were prevalent in the United States until 1975 when the Supreme Court of the country prohibited them (Koeltl & Kiernan, 1999, p. 614), due to the fact that lawyers regularly go through losses measured in money from inappropriate and injudicious payment practices.
Lawyers work in an ever more litigious and regulated environment therefore requiring them to take account of the increasing body of law on their lawyer’s fees. Retainer fees typically come into play when a person or company engages the legal services of a lawyer. This signifies that the client compensates the lawyer a monthly payment that enables the client to receive every routine legal advice needed (Entrepreneur Connect, n. d. ).
Contingent fees, on the other hand, is an agreement between the client and the lawyer wherein the latter’s fee, which is generally a predetermined fraction of what may be recovered in the claim, is made to rely upon the success in the attempt to defend or enforce the rights of the client. In legal profession, contingent fee is considered as a valid agreement. Conversely, fee splitting is the practice in legal profession of giving out fees with other professional associates in response for being sent legal appointments. The practice of fee splitting is often clandestine since it is deemed improper and unethical.
Lastly, padding is the practice within the legal profession wherein the actual cost of the legal service to the client is excessively augmented throughout the course of the action. Padding fees is a serious problem in the legal industry since the fees can add up to thousands of dollars. Nevertheless, with the several methods of securing payment, the most logical way for a lawyer to bill a client for the latter’s criminal defense is to implement a stipulation that would allow the lawyer to have a lien to the client’s documents, property and money, as well as charges for money judgments.
By this means, the lawyers will be insured of being compensated for their professional fees and settlement for their lawful expenditures initially made. References Entrepreneur Connect. (n. d. ). Retainer Fee. Retrieved January 8, 2009, from http://www. entrepreneur. com/encyclopedia/term/82562. html Koeltl, J. G. , & Kiernan, J. (1999). The Litigation Manual: Special Problems and Appeals. United States: American Bar Association.