Many individuals hesitate to hire lawyers due to concerns regarding the costs involved with legal services. Lawyers should charge fair and reasonable rates.
Legal fees depend upon the nature and experience of legal services being rendered, with typical fee structures including hourly rates, flat fees and contingency arrangements.
Some chapters of the Integrated Bar of the Philippines have established Standard Minimum Attorney Fees Schedules for their members.
Hourly Rate
People tend to worry about the cost of legal services when seeking them, yet it is essential that expertise, strength, records and experience of lawyers be considered prior to determining how much services should cost.
Most attorneys charge by the hour to cover their work on a case, which many clients feel provides them with fair and equitable compensation for their time. Unfortunately, many clients remain wary about agreeing to this billing arrangement due to fear that fees will accumulate quickly.
To prevent overcharging, lawyers should be transparent when calculating their fees. To provide their client with transparency when calculating charges and indicate whether or not they will charge at their usual hourly rate or reduced hourly rate. In case any disputes arise they should provide contact details and address. Any excessive charges should also be reported directly to either IBP (Integrated Bar of the Philippines) or to judiciary bodies.
Flat Fee
Flat fees are charged by lawyers as an upfront charge for legal services rendered in one matter, such as issuing duplicate owner’s certificates of title for property or filing suit to remove an illegal structure. They can be particularly useful when legal matters involve straightforward services that don’t require lengthy consultation processes such as issuing duplicate certificates.
Lawyers may charge a flat fee per case or phase of legal representation; this arrangement is often seen for divorce proceedings, labor issues and real estate transactions.
No matter the nature of fees charged, clients should prioritize transparency and budget considerations when selecting an attorney. They should also be mindful that any violation of ethical standards could lead to disciplinary actions by either the Integrated Bar of the Philippines or courts; such measures usually include fines and mandatory ethics training programs; in extreme cases however revocation of their license could occur.
Retainer Fee
Retainer fees are agreements between lawyers and clients that entail having their lawyer available when needed for legal advice or consultation, usually at an agreed upon fee. Businesses looking for regular legal guidance often find retainers more cost effective.
Retainer legal fees differ from hourly rates in that they are determined and agreed upon upfront, providing more transparency and open communication about any charges that will arise. In addition, retainers allow lawyers the freedom to charge what they consider fair for their services knowing that their retainer clients will provide consistent work over time.
IBP has released a standard minimum attorney fees schedule as an aid for lawyers charging clients. While it may provide guidance, legal fees should always be decided upon according to market forces and reputation and experience of each lawyer.
Acceptance Fee
Preference should be given to lawyers with clearly stated and transparent pricing structures for their services, along with budget considerations and qualification/reputation assessments of potential lawyers.
Hourly rates for lawyers in the Philippines typically range between P3,000 to P25,000 per hour, with senior or established attorneys requesting higher hourly rates. Clients should cover costs associated with filing and docket fees as well as miscellaneous expenses such as additional professional fees, publication costs, printing, transportation and stenographic fees. It may be prudent to opt for solo practitioners since their fixed fees tend to be lower compared with large firms; however they must be open about their pricing scheme as well as inform clients of risks involved with contingency fee agreements in advance.