In the past, Sophia Jones (not her real name), a former accounts manager in New York City, relied on attorneys to handle her divorce proceedings; help her file for bankruptcy; and, as a favor, write a letter to the neighborhood dry cleaner when it refused to replace a ruined linen suit. In 1999, she moved to Martinsburg, West Virginia, bought a new home, and the builder refused to fix the laundry list of unfinished work. Then, in 2002, her son got arrested on charges of burglary after following friends into an unlocked dorm room. Jones admits that she never imagined she would need so much legal assistance at one time in her life.
“You should retain and build a relationship with an attorney before you need one,” says Malcolm S. Robinson, co-founder and partner at the law firm of Robinson & Hoskins L.L.P. in Dallas and president of the National Bar Association, a 77-year-old organization comprised of African American lawyers and judges. “People often wait too late. They call for representation after…it [becomes] more difficult to protect their rights, so, consequentially, they’re looking at higher legal fees,” he adds.
According to a survey conducted by Leo J. Shapiro & Associates, a research firm in Chicago, for the American Bar Association, 71% of U.S. households report experiencing some event in a 12-month period that might have led them to hire a lawyer. The study also indicated that for consumers, legal services are among the most difficult services to buy because of trepidation in the beginning of the search. Most American adults have not used a lawyer more than once, even though the average person has several matters per year with which a lawyer’s help might be useful. But how do you go about choosing an attorney?
Jones joined more than 100 million other Americans and signed up for legal insurance. Pre-Paid Legal Services Inc. and U.S. Legal Services Inc. are two such plans, similar to health plans, which cover the member, spouse, and dependent children. The most basic plans provide free initial consultation from preselected lawyers in regular private practice and discounts on legal fees if further services are needed. Almost every legal service plan provides advice and consultation by telephone as a basic service. These plans may also include brief office consultations, review of simple legal documents, preparation of a simple will, and short letters written or phone calls made by a lawyer. More comprehensive plans cover trials, divorce, bankruptcy, and real estate issues and are designed to meet 80% to 90% of a client’s personal legal service needs.
In a prepaid legal service plan, the customer pays a fixed amount in advance each month, ranging from $9 to $25, to defray the cost of legal services furnished in the future. Some prepaid plans also offer fixed annual payments.
“You’re probably better [off] signing up with a legal services plan than you are going out and interviewing people yourself, unless you have an immediate need. It means having the person on retainer, being able to call anytime, and having a network available. That’s all valuable. Any plan is better than no plan,” says William Bolger, executive director of the National Resource Center for Consumers of Legal Services (NRCCLS), a nonprofit research group that has tracked legal service plans for 25 years.
You may have access to a plan and not even know it. Although the American Association of Retired Persons’ group legal plan covers 17 million members, and the AFL-CIO’s group plan remains the largest of any kind, covering 40 million people, Bolger states that these no-fee plans are not regularly used because many of their members may not realize that this perk comes with membership.“The biggest mistake that we encounter is when somebody has a particular legal problem — a divorce or a dispute with a neighbor — then instead of finding the right lawyer for that problem, they join a legal plan to save money,” Bolger adds. “That’s the wrong thing to do. The way you find a lawyer is the same way you find someone for any other service position, be it a plumber or electrician.”
Get referrals: Ask around. A good referral will come from a client with a similar case who was satisfied with the attorney’s performance. Once you’ve got a few names, check the attorneys’ qualifications, educational background, and professional history. You can find this information through your state bar association (www.palidan.com/statebar.htm).
Check advertisements: Lawyers were prohibited from advertising until 1977. The NRCCLS suggests that the yellow pages is the best single source of lawyer ads.
Use lawyer referral services: Sponsored by state and local bar associations, these services interview potential clients and help assess their legal needs. If the problem requires a lawyer, referrals are then offered, otherwise clients are directed to a community resource that may help. You will have to pay an initial consultation fee to help support the service. Commercial lawyer directories that match clients and
lawyers can be found online, as well. Attorney Locate, Lawyers.com, and Cyber Bar Association are just a few. Post your problem on Websites such as Attorneys Bid or LegalMatch and see which lawyer bids the lowest to handle your case. The American Bar Association cautions that client confidentiality can become an issue after you’ve posted your information on the Internet. So write your query in general terms.“Get an attorney who gives you candid advice and counsel,” says Robinson. “You want to make an informed decision and you need someone who’s going to lay it out for you, give you options within the law, and tell you what the ramifications are of making certain decisions,” he says.
After you receive referrals, call to set up interviews with at least two attorneys. Most lawyers do not charge for answering inquiries about what they can do. Be wary of attorneys who guarantee results. After the interview, there are several factors to consider in choosing an attorney.
Cost: Bolger says that competition in the field is holding down lawyer’s fees. There are several payment options:
Hourly rates can range anywhere from $50 to $1,000 or more. Make certain to get a written fee agreement that also states when the amount due is payable. It should also specify what other charges you are responsible for, such as court costs, phone calls, and so forth. There may be room for negotiation. It’s also important to know that more expensive does not mean better representation. When the total amount of work is uncertain, get a written estimate of the probable number of hours and require that you be notified when it appears that the total will exceed the estimate.
Flat fees are most common for routine matters where the time involved is predictable. House closings are a good example. Bolger suggests not forcing your lawyer to set a flat fee because the lawyer may build in a hefty risk premium. Chances are you’ll end up paying more than you would have if billed by the hour. The benefit of a flat fee is that if the case requires more time and effort than originally anticipated, the attorney may not later demand more money.
Contingent fees are commonly used when seeking money damages, such as in personal injury and workers compensation cases. The lawyer receives his fee out of the amount he helps you obtain. Attorneys typically receive about one-third of the recovery, but it may range between 20% and 40% of the client’s recovery. These fees can vary.
Retainers are considered advanced payment or an initial fee paid by the client. The lawyer will bill against the retainer at whatever hourly rate you agree on. The attorney then agrees to be available to handle the client’s day-to-day legal affairs. Bolger suggests that most people don’t have enough legal concerns to keep an attorney on retainer. He also says if the lawyer asks for what seems to
be an excessive retainer, it may mean that the lawyer isn’t really interested in your business or sees real problems in pursuing the matter effectively.
Credentials: Don’t be embarrassed to ask questions: How long an attorney has been in practice? What percentage of the lawyer’s cases is similar to your type of legal problems? How the lawyer accepts payments?