| Around the internet, you will read advice that tells you | | | | fee. |
| to negotiate attorney fees with your attorney, or to | | | | 4) Retainers and Hourly Billing: This is the most |
| inquire about alternate billing methods to save you | | | | traditional method that attorneys use to charge for |
| money in your federal disability retirement application or | | | | their services. You pay a sum, called a retainer, to the |
| appeal. Usually, however, the article stops there. Here | | | | attorney. That retainer is held in a Trust Account (in |
| is a summary of some of the different types of fee | | | | Texas, they are called IOLTA accounts). Periodically, |
| structures that are available. Before starting, however, | | | | the attorney takes money out of the trust account for |
| it is helpful to understand that certain fee structures | | | | hours worked and fees expended. The amount that |
| may not be appropriate for your case and may end | | | | the attorney takes out is based on the number of |
| up costing you more than you expect. Other fee | | | | hours worked in that period times the hourly rate that |
| structures might be unlawful (in Texas, for example, it | | | | you and the federal disability retirement lawyer agreed |
| is illegal to charge a contingency rate for a criminal law | | | | to. If your retainer runs low, or reaches an agreed on |
| case). | | | | thresh-hold, you will have to replenish the retainer. |
| 1) Consultation Fee: This is the first fee that you might | | | | Many Firms are moving to what is called the |
| run across as you look for a federal or postal disability | | | | "evergreen retainer", where the client is required to |
| retirement lawyer. Most Firms that charge this fee do | | | | automatically replenish the retainer to a certain dollar |
| so to cover the costs and time involved in evaluating | | | | amount any time it reaches a certain dollar amount. |
| your case. Not every firm does charge a consultation | | | | The plus side of an hourly fee arrangement is that if |
| fee, however. If you are not paying a consultation fee, | | | | the attorney doesn't spend all of the retainer, the |
| you are probably not getting any specific legal advice | | | | federal employee or postal worker client will receive a |
| about your situation; you are probably getting a | | | | refund of the unused portion. The down side is that |
| cookie-cutter type analysis meant to help the attorney | | | | these types of fees are usually unpredictable, and can |
| or Firm assess if they want to go further. This isn't a | | | | get quite expensive, particularly when an attorney has |
| bad thing - certain types of cases lend themselves | | | | a higher hourly rate. |
| well to such an approach. | | | | A word about hourly rates: hourly rates are set by an |
| 2) Contingency Fee: This type of fee arrangement | | | | attorney or a firm based on its own internal |
| occurs where the law firm agrees to represent you, in | | | | calculations and policies. The hourly rate can vary |
| exchange for a percentage of any recovery. Usually, | | | | drastically from city to city. |
| that percentage will range from 20% to 45%. If it is | | | | For example, the hourly rate at my firm is generally |
| any lower, you should be suspicious: this amount would | | | | computed by totaling the costs of running the law |
| usually not be enough to fairly compensate an | | | | office (hiring staff, equipment, office space, storage |
| attorney for his or her time on a case, so you should | | | | space, copiers, computers, fax machines, insurance, |
| be wary of the old adage that you get what you pay | | | | etc.) divided by the number of hours the Firm needs to |
| for. If it is any higher than 45%, you should be | | | | be open for clients. Because it is cheaper to run a law |
| extremely suspicious - I have only heard of | | | | office in Dallas, Texas than in Washington, D.C., the |
| contingency arrangements higher than 45% of the | | | | average hourly rate of an attorney in Dallas should be |
| award in a select few cases. Read the language on a | | | | lower than a similar attorney in Washington, D.C. Many |
| contingency fee contract carefully. While not having to | | | | attorneys are maligned for high hourly fees - the |
| pay costs up front, you will likely have to pay costs out | | | | greater public thinks we get rich off our hourly rates - |
| of your share of the award. Be wary of firms that | | | | not true. I agree that some of the big firms tend to |
| charge you a percentage of your future disability | | | | have unusually high or exorbitant hourly rates; for most |
| retirement benefits - this is an unusual practice and | | | | small law firms, boutique or niche practices, or solo |
| hamstrings the federal retiree on a fixed income. | | | | practitioners, the hourly rate is just enough to keep the |
| 3) Fixed Fees: Some attorneys will agree to represent | | | | power on and the phones ringing. |
| you in your MSPB appeal or application to OPM for a | | | | 5) Engagement Retainers: More and more law firms |
| fixed fee. This type of fee is a one-time fee that you | | | | are using engagement retainers. This type of retainer, |
| pay to the attorney in exchange for legal | | | | also called a True Retainer, is a one-time payment to a |
| representation. The attorney's representation is strictly | | | | firm or attorney which enables them to make time |
| limited, in terms of time or scope. For example, a | | | | available to represent you (and not some other client). |
| Federal Disability Retirement lawyer may charge a | | | | The Firm and the client anticipate getting attorney fees |
| federal employee or postal worker a fixed fee for the | | | | paid later (usually through some sort of fee-shifting |
| first application for federal disability retirement. Once | | | | provision), and so the Engagement Retainer is a |
| the application is filed, the representation is over, unless | | | | payment that is consideration for keeping the time |
| you agree to something different. The fixed fee can | | | | open to be available to work a case. |
| be a monthly fee for each month that your case goes | | | | 6) Blended Arrangements: Any one or more of the |
| on, or one fee for the whole application, or one fee for | | | | above approaches can be blended together. At my |
| the MSPB appeal: there are unlimited ways that a | | | | Firm, for example, we charge Federal employees and |
| fixed-fee approach can be structured to help fit your | | | | postal workers a fixed fee for the first application for |
| budget needs and the attorneys need to run a | | | | disability retirement, and other fees for the MSPB |
| business. The nice thing about a fixed-fee is that it | | | | appeal phase (depending on the client's needs, ability to |
| fixes your legal costs to a known dollar amount. The | | | | pay, and the facts and complexity of the particular |
| down side? Fixed fees can, in complex cases, be | | | | case, etc.) Blended arrangements are more and more |
| somewhat high, as the attorney or law firm does not | | | | common - attorneys as an industry are striving to find |
| want to run the risk that they will put more time and | | | | a balance between affordable legal representation and |
| costs into the case than they can recover with a fixed | | | | covering the high costs associate with a law practice. |