17.04. Billing for Expenses

Notice that Rule 1.5(a) says that not only must a lawyer’s fee be reasonable, but expenses must be reasonable as well.  The expenses/costs that a lawyer will incur in the course of representation are varied.  In a litigation matter, there will be expenses for filing fees, copy charges, and expert witnesses just to name a few.  The way expenses are paid varies as well.  The lawyer and client can agree that the client will pay the expenses as they are incurred.  This often happens when clients are billed hourly.  The lawyer sends out a bill periodically that includes both the amount of the lawyer’s fee as well as the expenses the client is responsible for paying.  Another way that fees can be paid usually arises in a contingency fee case.  In those cases the engagement letter will say either:  (1)  the client will not owe anything unless the lawsuit is successful or (2) the client will be responsible for expenses regardless of the case outcome (the client would be responsible for expenses but not for attorney’s fees).  If the case is successful the expenses are taken out before the client receives her share of the proceeds.