Free Initial Consultation In Some Cases
Babachanian offers prospective injury, bankruptcy and criminal defense clients free initial consultations. In some cases, he may extend free initial consultations to other prospective clients by prior arrangement, but Babachanian generally charges $100-$250 for initial consultations.
Written Representation Agreements
With few exceptions, Babachanian confirm most representations in writing so that he and clients understand their respective duties and rights. Written fee agreements also serve the purpose of meeting certain legal requirements.; for example, in California, in cases where a contingency fee will be charged or if the attorney reasonably expect total fees and costs to be $1,000 or more, the law requires attorney-client representation agreements to have certain terms in writing.
Invoicing Methods
Babachanian’s invoices are easily auditable with clear explanations of the work done, the time spent, the date work was performed, credits, current and prior charges, hourly fees and – when applicable – a showing of attorney-client trust account activity.
An attorney-client trust account is basically a special bank account into which clients’ money is deposited. Legal fees (and costs such as court filing fees, deposition transcript charges, etc.) would then be subtracted from the trust account as earned (or as the costs are incurred). Any funds left in trust at the conclusion of the matter would be returned to the client.
Types of Fee Arrangements
Babachanian’s fees are flexible. The type of fee arrangement used depends on factors such as the type and complexity of case, the risk of the issues and the likelihood Babachanian would have to turn away other engagements to take on a particular case. In determining fees, Babachanian also consider his level of experience, prevailing market fees and the nature of the client; charities may get fee preferences over businesses, for example.
Depending on the case at hand, fees might be fixed, staged, hourly, by retainer, contingency, modified or statutory:
- Fixed Fee. Babachanian tries to give a fixed fee quotations in appropriate cases like those involving simple wills, trusts and contracts, consumer bankruptcies, and certain criminal matters. Babachanian makes sure his clients knows what’s included and what is not.
- Fee in Stages. This type of fee is best for cases that don’t quite fit into the fixed fee scenario because the work will probably be more involved – like in certain criminal defense matters. For example, in a drunk driving case there may be one fee for the first few appearances in court (to enable discovery of the state’s evidence against our client and to discuss possible dispositions with the prosecutor) and an additional fee for the next stage of the proceedings such as a preliminary hearing or trial. Another example might be a lawsuit where Babachanian would charge a certain fee to respond to a complaint and propound some discovery, and additional fees to depose the adversary, bring motions and try the case.
- Hourly Fee. This is a straightforward method of billing whereby Babachanian charges for time spent on a case. When possible , Babachanian estimates a range for what a total bill will be based on the facts, the client’s needs and other factors. It is generally difficult to offer an accurate estimate due to many factors – the complexity of the area of law involved, how aggressively the other side conducts litigation, changes in circumstances, etc. Babachanian’s clients can nevertheless count on him to charge an ethical fee for quality work reasonably necessary to carefully, effectively accomplish client objectives while not cutting corners. Babachanian’s hourly fees takes into consideration the circumstances at hand including a matter’s complexity, risk and opportunity cost. Clients and counsel would, of course, agree in writing on the manner in which the fee would be calculated before representation commences.
- Retainer Fee. A “retainer” means different things to different people. To Babachanian, it means a monthly fee charged to a business client to have Babachanian available when needed for certain pre-agreed kinds of work. The fee is billed whether or not the client uses Babachanian’s services in a given month; the fee is intended to make sure Babachanian remains “on call” for the client and varies depending on what is expected. In general, certain kinds of legal work would be covered by the retainer fee while other types of legal services would be billed separately. There are three main reasons businesses consider retainer arrangements:
1. Savings – Efficient use of a retainer plan can result in excellent value;
2. Availability – When your business needs help, you have it; and
3. Risk Management – Too many expensive disasters could have been easily averted with a little legal.
- Contingency Fee. This kind of arrangement means Babachanian will charge a certain percentage of any money recovered for you; if there is no recovery, there is no fee (though you may remain responsible for costs). Babachanian uses contingency fees most often in accident injury cases or other cases where our client is claiming a right to money. Of course, contingency fees are not suited to criminal cases, most lawsuit defense matters and other cases where the client is seeking something other than money (an injunction, for instance).
Contingency fees in injury matters are commonly one-third to 40%, and 25% to 50% in collection cases. The relatively high percentage built-in to contingency fees is designed to provide lawyers with a hedge against the risk of taking these cases on a “no recovery/no fee” basis while at the same time offering consumers affordable legal services. While some people may believe contingency fees seem high, it is important to remember that contingency fee arrangements offer an alternative to hourly or flat fees that many consumers simply cannot afford.
- Modified Fee. This kind of fee is some combination of the other fees, usually a reduced hourly or flat fee in combination with a reduced contingency fee. This type of fee is best suited for cases that are too risky to be handled on a straight contingency fee.
- Statutory Fee. In most kinds of legal cases, clients and lawyers are free to agree on fees. The fees in certain types of legal work, however, are set by law. For example, California probate attorneys are permitted to charge a sliding scale fee with a certain percentage of the first X amount of the probate, then a lower percentage of the next Y amount of the estate probated, and so on. A similar rule exists for fees in medical malpractice cases, and in cases involving claims on behalf of minors. For certain other legal problems, the court either sets or must approve the fee to be paid.
Feel free to contact Babachanian for more information.