Lawyers’ fees vary significantly, impacted by geographic location, firm size and prestige, area of law, and other factors. In 2024, according to ALM Global, hourly rates reached a peak of over $2,400. However, Statistica reports that the national average falls between $200 and $400, consistent with average rates seen across Ohio. This indicates a wide variability in what is considered reasonable.

Ohio Rule of Professional Responsibility 1.5 identifies several factors to consider in determining the reasonableness of fees, including the lawyer’s skill and experience, the time required, the amount in controversy, and regional customary fees for the type of legal service rendered. While these factors are helpful in assessing a reasonable fee, identifying cases where a lawyer’s fee was “clearly excessive” may also be instructive.

In a 2024 ruling, the Ohio Supreme Court ordered the permanent disbarment of a central Ohio attorney.  In one of the four matters involving professional misconduct, the attorney was found to have charged clearly excessive fees. A woman’s niece retained the lawyer for estate planning for her aunt who was in her mid-eighties. The objective was to prevent any debt obligations from being transferred to the aunt’s nieces. For an estate worth $28,885, the lawyer proceeded to work on a special needs trust for which the aunt was statutorily ineligible, billing 13.6 hours for work related to the trust, 9.6 of which occurred after the aunt died. The lawyer charged over $14,000 in total legal fees. The Court agreed with the Board of Professional Conduct that the fees for the trust were clearly excessive and ordered the lawyer to pay restitution to the estate for the amount billed for the trust work. The ruling determined that the fees were unreasonable due to the untimely and impermissible attempt to form a trust.

The Court also evaluated the reasonableness of flat fees charged in criminal matters in a 2023 disciplinary case. The northeast Ohio lawyer charged a flat fee of $10,000, including trial if necessary, for a client’s assault case. He also charged that client a flat fee of $2,500 for a motion to suppress in a separate drug case. Two months later the attorney was discharged and he refused to refund any of the fees. While the lawyer had met with the client a few times for approximately five hours and had at least accessed the link for discovery, he had not interviewed witnesses or engaged in other investigation and he had not filed a motion to suppress in the drug case. Determining that the attorney’s refusal to refund any of the fees was unreasonable, the Court found that $12,500 in fees was clearly excessive for the amount of work performed.

The variability in legal fees requires an analysis rooted in the factors of R. 1.5(a), including the attorney’s experience, the amount of time and effort involved, and the customary rates in the region. These recent disciplinary cases illustrate the nexus between fees charged and work performed where the Court has found fees were “clearly excessive.” Lawyers must carefully consider the factors outlined in Rule 1.5 to avoid charging excessive fees and maintain the trust and integrity of the legal profession. By maintaining clear communication with clients about fee structures, billing expectations, and realistic outcomes, attorneys can better align their services with the principles of fairness and reasonableness.

Don’t hesitate to contact OBLIC’s Loss Prevention with questions or to take advantage of the complimentary ethics consults for policyholders.

This information is made available solely for loss prevention purposes, which may include claim prevention techniques designed to minimize the likelihood of incurring a claim for legal malpractice. This information does not establish, report, or create the standard of care for attorneys. The material is not a complete analysis of the topic and should not be construed as providing legal advice. Please conduct your own appropriate legal research in this area. If you have questions about this email’s content and are an OBLIC policyholder, please contact us using the information above.