I see great disparity among legal fees on matters where a small firm is representing someone as opposed to a large firm. When is a fee excessive?
The starting point for a fee analysis is Rule of Professional Conduct 1.5. That rule is fairly straightforward. It notes that a lawyer “shall not enter into an agreement for, charge or collect an illegal or clearly excessive fee.” The rule then lists eight factors to consider whether a fee is excessive, including: the novelty of the issue and time spent; whether or not the lawyer had to turn down other cases; whether other attorneys are charging similar fees; the amount and result involved; time limitations; the nature and length of the professional relationship with the client; and experience, reputation and ability of the lawyer. As noted under Rule 1.5(b), all fee arrangements have to be in writing and given to the client within a reasonable time after the representation begins.
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