Many serious cases are not suitable for conditional pricing agreements for a variety of reasons. For example, if a lawyer defends a company in a lawsuit, a good outcome for the client can result in a court victory or an order granting a summary assessment application. The good result is that the customer does not have to pay judgment or transaction. Despite the correct result, such an outcome does not create funds from which counsel can collect a conditional fee, so a conditional agreement would not be appropriate in such circumstances. However, such a case may be appropriate for a reverse contingency pricing agreement or any other alternative royalty regime. The flat fee is reasonable for relatively simple matters, such as an undisputed divorce or the writing of a basic trust. They may also work in more complex cases where representation can be subdivided into different segments or phases, such as, for example. B, an immigration case that clearly delineates the visa procedure, including filing the visa application, filing the immigrant visa application and representation during the consular interview. Instead of a pricing agreement that indicates a plan for these services, the lawyer can break down each segment and charge a separate flat fee for each service. An hourly fee contract is a contract between a client and the law firm, in which lawyers and para-professionals incriminate the client on time for legal services. Any lawyer, paralgal or legal assistant who works on a case records his time for each task.
At the end of each month, the company invoices the client for the legal services provided in the previous month. The law firm multiplies the countable hours of each timekeeper by the person`s hourly rate; it makes adjustments when it feels that a person has not been effective in a given task. The company then calculates the invoice with the funds deposited by the client into a trust account or sends the invoice to the customer for payment. For clients who are individuals, families or small businesses, conditional pricing agreements or other AAAs may be the only way to access justice. The flat-rate tariff agreements can be combined with other hybrid pricing agreements, such as. B conditional pricing agreements or reverse contingency pricing agreements. Here too, the customer is generally required to pay the procedure fee in addition to the flat fee. A lawyer who accepts a flat fee for legal services must comply with Rule 1.15 (b) in order to avoid possible breaches of the loyalty manual.
The other important provision is that counsel must keep specific time records on all lump sum cases, since counsel must be able to determine which portion of the flat-rate tax was earned if the lawyer is dismissed before the end of legal services. A package is won only at full power. Once the lawyer had fully executed, the lawyer earned only the lump sum fees, not the value of all the time invested in the case.  Until the lawyer has completed a full fee, the lawyer is entitled only to quantum meruit or the reasonable value of the services and must provide accounting upon request.  Time data are invaluable in proving quantum menuit. However, in the case of a flat fee, hourly statements are not the last word on the fair value of the lawyer`s benefits, even if the work done every hour exceeded the flat fee. This is due to the fact that the client is not in an hourly agreement with the lawyer, but an agreement for the lawyer to complete the contractual services for a certain lump sum.