Legal Fees

In Japan, attorney’s fees for corporate legal matters are often calculated on an hourly basis. However, for cases such as litigation or settlement negotiations, it is common to use a system based on a retainer fee and a success fee, calculated in proportion to the benefit ultimately obtained.

In the United States, by contrast, the general rule is that legal fees are charged on an hourly basis not only for corporate matters, but also for litigation, settlements, and other cases. In fact, in certain matters—particularly family law (such as divorce) and criminal defense—hourly billing is the only method permitted, and contingency or success-based fees are prohibited.

I often hear concerns such as, “Won’t hourly billing make attorney’s fees very expensive?” However, in the U.S., given the nature of divorce and criminal cases, it is considered unreasonable to tie attorney compensation directly to the result. For example, divorce is about creating flexible solutions for the future of the spouses and children, so a fee structure that rewards an attorney only if the divorce is finalized does not reflect the true purpose of the case. Instead, it is deemed more appropriate to charge based on the actual time spent.

That said, under the retainer/success fee system in Japan, clients generally do not see their total fees increase simply because they called their attorney multiple times, or because the opposing party filed additional motions to delay proceedings. By contrast, under an hourly billing system, each call might add an hour, each email another thirty minutes, and each filing from the other side several more hours. Naturally, clients often worry about how much their legal costs are adding up as the case progresses.

While I primarily work on an hourly basis, I also offer flat fee arrangements in some cases. Even when I charge hourly, I make every effort to provide an estimate of the expected costs at the outset. These estimates vary depending on the nature of the matter, and I will need to ask open and candid questions to understand the key issues from a legal perspective.

Whether in person, by phone, or via online conference, I am happy to have an initial consultation and then provide you with a cost estimate. Please feel free to contact me.