Lawyer's fees – based on what are fees for representation determined?

A lawyer's fee is the payment the client makes for the lawyer's services to handle a particular legal problem. The fee can be determined based on many parameters, such as the lawyer's seniority and experience, the complexity of the legal issue, the court to which the claim is filed, the urgency of the problem, the number of hours the lawyer will have to invest to handle the problem, and many other parameters that this article will address.

It is important to know that the Bar Association has determined Recommended minimum rate for attorneys' fees, but these rates have not been updated for a long time, and in any case, these are not the rates that the lawyers are obligated to pay. In practice, the lawyers charge much higher fees.

As in any other field, attorney fees are subject to negotiation, so if you receive a quote, do not rush to accept it. Try to see if it is possible to reduce the attorney fee to a lower amount or on more favorable payment terms (for example: more payments on credit). This will not always be possible, but it is always worth examining the attorney's willingness to reduce the fee.

Attorney fees when filing a lawsuit

Submission Civil lawsuit or Financial claim Involves the payment of attorney's fees. Attorney's fees may vary for different claims filed in different courts. For example: Attorney's fees when Filing a lawsuit in the Magistrate's Court Will usually be lower than the attorney's fee when filing a claim in the district court. Handling claims in the district court is usually more complex and involves more working hours, so this is reflected in the payment of higher fees.

We also need to understand the essence of the lawsuit. Lawsuit against an airline A claim for a flight delay will usually be less complex than a claim for personal injury, and therefore the amount of fees in claims against airlines on these issues is expected to be lower. The more complicated the issue, the higher the fees will be.

Sometimes attorney fees are paid based on a percentage of winnings or success.

The client is not always required to pay the lawyer's fee in advance. In some cases, the fee is determined based on a percentage of the winnings or according to the success of the procedure (for example: in the framework of Class action lawsuit). This payment method is common in cases involving road accidents or claims against National Insurance. The advantage of this method is clear – the client pays nothing if he loses the claim, and also pays a certain percentage, which is sometimes far from negligible, if he wins his claim.

שיטת תשלום זו נפוצה במקרים שבהם מתנהלים הליכים משפטיים מול גופים עמידים מבחינה כלכלית, כגון חברות ביטוח, בתי חולים, המוסד לביטוח לאומי, וכו'. שיטת תשלום זו פחות נפוצה כאשר מנהלים תביעות נגד אנשים פרטיים או חברות בע"מ משום שגם אם עורך הדין יזכה בתביעה, אין ודאות שהוא יזכה לקבל את שכרו. במיוחד כאשר מדובר בתביעה על סכום גבוה מאוד, הנתבע יוכל לנקוט בהליכי פשיטת רגל ועורך הדין לא יזכה לקבל שכר טרחה.

Attorney's fees paid to a veteran and experienced attorney

There can be a significant difference in the fees you pay for a lawyer when you go to a veteran and experienced lawyer versus a lawyer who has just received his license. A veteran and experienced lawyer may well charge much higher fees for the exact same matter, compared to a young lawyer.

The differences in fees are due to the fact that a veteran and experienced lawyer has handled many cases on the same issue relevant to you, and may have gained unique expertise in those cases that allows him to win in court. This experience and expertise may certainly justify paying a much higher attorney's fee.

Attorney fees paid to a large versus small law firm

The size of the law firm may also affect the amount of fees. Ultimately, you, the client, are paying for the luxury and ostentatiousness that you sometimes encounter in a large law firm. If it is only the size of the lawyer’s office that has convinced you to pay a higher fee for legal services, you may have made a mistake. As previously reported in the media, a large law firm may charge twice as much as a small firm.

A lawyer at a small boutique firm may provide you with just as good, or even better, legal services than a lawyer at a large law firm. The size of the firm alone should not be a significant consideration in the decision to hire a lawyer, and it certainly should not have a significant impact on the amount of a lawyer's fees.

It is important to know that in many large law firms, the person who will actually handle your case is a junior lawyer or even an intern, and the lawyer you actually contacted will only attend the hearings or go over the documents to make sure there are no mistakes.

Different options for paying attorney fees

Global Lawyer Fees

אפשרות זו מאפשרת לשלם לעורך הדין תשלום כולל בסכום שיוסכם בין הצדדים, ותמורתו עורך הדין יטפל בסוגיה עד לסיומה. היתרון מבחינת הלקוח באפשרות זו הוא שלרוב התשלום כולל את כל הפגישות/הדיונים/הבקשות/התגובות הנחוצות לצורך הטיפול בסוגיה. מבחינת הלקוח אין "הפתעות" לאורך או בסוף ההליך מבחינת תשלום שכר טרחת עורך דין.

Lawyer's fees by the hour

אפשרות זו מאפשרת לצדדים להסכים על תעריף שעתי (לרוב נע בין 750 – 2000 ש"ח – תלוי בניסיונו של עורך הדין ובסוגיה הרלוונטית). במצב זה הלקוח יחוייב אך ורק בהתאם לאותן שעות עבודה בהן עבד עורך הדין. החיסרון מבחינת הלקוח בשיטת עבודה זו הוא שלא ידוע מה יהיה גובה שכר הטרחה בסיומו של ההליך, משום שלא תמיד ידוע כמה דיונים/פגישות/בקשות/תגובות יהיה צורך להגיש במסגרת אותו הליך.

Sometimes this option is preferable if there is a high probability that many working hours will not be required.

Lawyer's fees based on percentage of winnings or success

לאפשרות זו כבר התייחסתי קודם לכן. מדובר בשכר טרחה שמשולם אך ורק אם הלקוח זוכה בתביעה. לא כל עורך דין יסכים לקבל לטיפולו תיק בו לקוח מעוניין לשלם לפי הצלחה או לפי אחוזים מהזכייה. זה לא אומר שעורך הדין לא "מאמין" באפשרות לזכות בתביעה, אלא פשוט לעורך הדין לא תמיד כדאי להשקיע זמן רב בתיק כדי לקבל שכר טרחה בסכום לא ידוע בסיומו של ההליך, וזאת במיוחד אם אותו עורך דין מייצג לקוחות רבים שמשלמים לו עבור שירותיו תשלום גלובאלי או תשלום לפי שעות.

Combination of options: Fee based on percentage of winnings plus upfront payment

In certain cases, attorney fees are determined between the parties through a combination of several options. For example: Defamation lawyer May agree to receive an advance payment for handling a defamation claim, as well as a percentage of the amount awarded in favor of the client at the conclusion of the claim. If nothing is awarded at the end of the procedure (the claim is dismissed), the lawyer did not work for nothing.

Lawyer's fees according to stages or progress in the case

Another common option is to pay attorney fees in pre-defined stages. For example: at the start of the work X shekels; before the first hearing: an addition of X shekels; before The evidence discussion: An addition of X shekels, etc.

The advantage of this working method is that if the procedure is completed before one of the stages agreed upon between the parties, the client will not have to pay the full fee, but only what he has paid up to that stage.

Disputes regarding the collection of attorney fees after payment

It is no longer uncommon these days for problems and disputes to arise between the lawyer and the client after the payment of a lawyer's fee. This is often due to a failure to properly coordinate expectations or a failure to sign a fee agreement that regulates exactly what the lawyer's treatment includes (non-disclosure). Signing a contract which regulates the relations between the parties usually works to the detriment of the lawyer).

On the other hand, sometimes these are justified demands on the part of the client to receive a refund of at least part of the fees because the lawyer was negligent or did not perform part of the work. In these cases, the client may even consider (and rightly so) filing a lawsuit. Lawsuit against a lawyer Who represented him.

In order to handle these disputes, you can contact the Fees Committee on behalf of Bar Association:

In some cases, you need to consider Cancellation of a fee agreement with a lawyer In order to minimize damages, in these cases it will be necessary to hire the services of another lawyer to handle your problem. In the end, you will probably pay higher fees (for both lawyers combined) but you will significantly reduce the possibility of losing in court, especially if up to that point your lawyer did not represent you well.

Frequently Asked Questions Regarding Payment of Lawyer Fees