Hourly Rates for Defendants

April 13, 2006

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For a small business owner navigating the court system, there are a number of inherent economic disadvantages when being sued.

Contingent fee arrangements are not generally available to defendants, who usually are not attempting to collect damages. Thus, if you're sued, you must hire an attorney on an hourly fee basis, at rates usually in the range of $150 to $250 per hour. A retainer, or "down payment," typically in the range of $1,000 to $5,000, will be required upfront.

A defendant who does not have significant financial resources will not be able to hire an attorney and, thus, will not be able to effectively defend against the claim. This is in stark contrast to the plaintiff who will bring the claim and enjoy the benefits of a contingent fee arrangement.

So before you even get your day in court, economic factors put two strikes against you when preparing for the suit.