Legal Fees - No Secrets

It's funny you know, but I have never heard employees of a Lawyer comment adversely about the expense of legal services. And I believe I know why - they have special knowledge: of what income their boss really has, that fine margin between succeeding and failing; they know the financial obligation he has to them exceeds the entire balance of all other expenses of his being in business; they know each account contributes towards the expense of running a modern and effective legal practice, one that can deliver the range of services you need.

Not too many years ago the University of New England reported that about 75% of fees charged by Brisbane suburban Solicitors were consumed in office overhead costs. It also reported that they worked 51 hours per week for 49 weeks of the year and that over the 10 years prior to the report -

• Average earnings in Australia increased by 76%.
  
  
• But legal fees increased by 65%.
  
  
• And the Solicitors take home pay (his real earnings) increased by only 48.8%.
  

In reality a legal practice is just the same as any other business - offering a service, observing the applicable laws and trying to make a dollar. However there is a not so subtle difference in the fees chargeable by Lawyers.....

Consumer protection is a relatively topical thing these days. Lawyers however have provided a protection for their clients for over a century. The Costs Act of 1867, the Solicitors Act 1891 and the Legal Practitioners Act 1995 all regulated what and how Solicitors could charge for their services, the time for a client to challenge an account and the right to have the same scrutinised and certified (taxed) by an Officer of the Court. In civil matters, the Rules of Court also provided for the amount applicable, in the absence of agreement, to be chargeable by lawyers.

The Queensland Law Society Act 1952 and the Civil Justice Reform Act 1998 now replace those previous laws governing legal fees and costs. Solicitors are required to become "commercial" by entering written contracts with clients when fees will exceed $750.00. Procedures are provided for disputes.

So, in relation to fees, Solicitors still provide up-front information and consumer protection second to none. Unfortunately there are no specifications applicable to a legal problem. It is not like building a house where the costs can be accurately calculated in advance from plans and specifications. The matter may be complex necessitating lengthy preparation and intense research; the matter may be urgent and demanding devotion to you in preference to other clients; it may result in absence from the office causing a loss of opportunity to win other work; or your opponent may be more obstinate than you anticipated resulting in the trial being lengthier than expected. These are some of the reasons why a fixed fee quotation for legal work may not be appropriate.

Legal fees and costs are so relevant that sometimes they will influence the direction of a case.

So don't engage your Solicitor blindly, discuss what fees are chargeable and how they are payable. Be informed at the outset, not shocked upon completion.