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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102584
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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How much does it cost for a small corporation to retain an

Customer Question

How much does it cost for a small corporation to retain an attorney, not by the hour basis? This has to do with a home owner suing a termite company and 5 other parties involved having to do with the purchase of their home.
Submitted: 1 year ago.
Category: Legal
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Is the corporation defending itself a lawsuit, or, initiating it? And, can you please tell me a little more about the issue, in general?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 1 year ago.
We are being sued by the homeowner who says we didn't finish the authorized work and that we failed to call termites. Both of which are incorrect. There are 5 other parties being sued. We seem to have gotten thrown into the mix as in a blanket lawsuit. I was a procrastinator and have failed to file. This is a tort liability and I must file an answer with the court by this Wednesday (8/31) or be in default which would cost the corporation $200,000 + attorney fees. A lawyer is willing to take this on today for a 25,000 retainer fee. Is that reasonable?
Expert:  Ely replied 1 year ago.

Thank you. First of all, you make an assumption that most attorneys will agree to take a flat fee for a defense of a civil case. This is not true. Most defense attorneys (civil) charge hourly, between $150 to $250 or more per hour. They work off a retainer of anywhere of $5,000 and up.

At $25,000, that flat fee is a little high but may be justified if the lawsuit is large, and/or, if the attorney expects to spend as much time so as to justify the $25,000 if he were billing hourly at a reasonable rate.

If you mean that the $25,000 is a retainer, then understand that the attorney would actually, actively be billing against it. Then, that retainer is not unusual for a big company, but of course this is with the presumption that the attorney's hourly rate is reasonable.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.