What Hourly Billing Actually Costs: Real Numbers
Hourly Rate Ranges for Business Litigation Attorneys
Business litigation attorneys typically charge between $500 and $1,000 per hour. The specific rate depends on factors including the attorney’s experience, geographic location, firm size, and case complexity.
Common hourly rate tiers:
- Junior associates: $300–$500 per hour
- Senior associates: $500–$700 per hour
- Partners: $700–$1,000 per hour
- Specialized or high-profile attorneys: $1,000+ per hour
A single case typically involves multiple attorneys and staff working at different rates, all billing separately for time spent on your matter.
The Initial Retainer: Your First Major Expense
Before any work begins, hourly billing firms require a retainer—an upfront deposit against future legal fees. For business litigation cases, retainers typically range from:
- Simple contract disputes: $25,000–$50,000
- Mid-complexity business litigation: $50,000–$100,000
- Complex cases or high-stakes litigation: $100,000–$250,000 or more
This money must be paid before the firm begins work on your case. The firm draws down the retainer as they bill hours, and you must replenish it when depleted—often multiple times throughout litigation.
With Melmed Law Group’s contingency model, there is no retainer required. The lawyers at Melmed Law Group take on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you.
Monthly Billing: The Ongoing Expense
Once litigation begins, you receive monthly bills. These bills can vary dramatically depending on case activity, but typical monthly costs include:
Low-activity months: $10,000–$25,000
- Routine correspondence and case management
- Document review
- Status conferences
- Strategy discussions
Moderate-activity months: $25,000–$75,000
- Discovery requests and responses
- Depositions
- Legal research and brief drafting
- Client meetings and case updates
High-activity months: $75,000–$200,000+
- Multiple depositions
- Expert witness preparation
- Significant motion practice
- Trial preparation
- Intensive document review
For a case lasting 18–24 months, monthly bills can easily total $500,000 to $1,000,000 or more in attorney’s fees.
Total Case Costs: Realistic Examples
Example 1: Breach of Contract Case (Moderately Complex)
- Initial retainer: $50,000
- Pre-trial litigation (12 months): $300,000
- Trial preparation and trial (3 months): $200,000
- Total attorney’s fees: $550,000
Example 2: Partnership Dispute with Discovery
- Initial retainer: $75,000
- Discovery phase (10 months): $350,000
- Motion practice and mediation: $100,000
- Trial preparation and trial: $275,000
- Total attorney’s fees: $800,000
Example 3: Shareholder Oppression Case
- Initial retainer: $60,000
- Investigation and pleadings: $80,000
- Discovery including forensic accounting: $400,000
- Expert depositions and trial prep: $200,000
- Trial: $180,000
- Total attorney’s fees: $920,000
These costs are paid regardless of whether you win or lose your case.
Melmed Law Group eliminates this financial burden. The lawyers at Melmed Law Group take on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.
How Contingency Representation Changes the Economics
No Upfront Costs
With contingency representation at Melmed Law Group, you pay no upfront retainer and no initial fees. You can begin pursuing your legal rights immediately without depleting business capital.
The lawyers at Melmed Law Group invest their time and resources with no guarantee of payment, taking on the financial risk of the representation.
No Monthly Bills
Throughout your case, you receive no monthly bills for attorney’s fees. There’s no ongoing cash flow drain, no scrambling to pay legal bills, and no diversion of business resources to fund litigation.
Your business capital remains available for operations, payroll, growth, and other business needs.
Fee Only from Recovery
The lawyers at Melmed Law Group are paid only if they recover money for you. The fee is calculated as a percentage of the recovery and comes directly from the settlement or judgment proceeds.
Melmed Law Group takes on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.
Guaranteed Positive Net Result
With contingency representation, you always receive a net positive result:
- Recovery of $500,000 with 40% contingency fee = You receive $300,000
- Recovery of $1,000,000 with 35% contingency fee = You receive $650,000
You never face the situation where legal fees exceed recovery. The contingency model ensures that pursuing your case makes financial sense.
Predictable Cost Structure
You know from the beginning exactly what percentage of any recovery will constitute the firm’s fee. There are no surprises, no escalating hourly rates, and no unexpected bills for additional work.
This predictability allows for clear financial planning and decision-making.
Cost Comparison: Hourly vs. Contingency
Let’s compare the same case under both fee structures:
Breach of Contract Case: $800,000 in Damages
Hourly Billing Scenario:
- Upfront retainer: $60,000
- Litigation costs over 18 months: $420,000
- Trial and resolution costs: $180,000
- Total attorney’s fees paid: $660,000
- Settlement recovered: $650,000
- Net to client: -$10,000 (you lost money)
Contingency Fee Scenario (35% contingency):
- Upfront retainer: $0
- Monthly legal bills: $0
- Total attorney’s fees unless recovery: $0
- Settlement recovered: $650,000
- Contingency fee (35%): $227,500
- Net to client: $422,500 (positive result)
The difference is stark. With hourly billing, you would have lost money by pursuing your valid claim. With contingency representation, you recovered over $400,000.
This is why Melmed Law Group takes on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.
The Alignment of Interests Problem
Hourly Billing: Misaligned Incentives
With hourly billing, the attorney’s financial interest and your interest are not aligned:
You want:
- Efficient resolution
- Controlled costs
- Maximum net recovery (recovery minus fees)
- Quick settlement when offers are adequate
The hourly attorney’s financial interest:
- More hours = more revenue
- Prolonged litigation = more billing opportunities
- Extensive discovery = more billable time
- Going to trial = maximum fee generation
This doesn’t mean hourly attorneys are unethical, but the economic structure doesn’t encourage efficiency.
Contingency: Perfectly Aligned Interests
With contingency representation, your interests and the attorney’s interests are identical:
You both want:
- Maximum recovery
- Efficient resolution
- Strategic case management
- Appropriate settlement when offers are fair
- Trial only when necessary for adequate recovery
The lawyers at Melmed Law Group make more money when you make more money. The firm makes money faster when your case resolves efficiently. The firm’s success depends entirely on your success.
This alignment exists because Melmed Law Group takes on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you.
When Does Contingency Representation Make the Most Sense?
Contingency representation at Melmed Law Group is particularly advantageous when:
Substantial Damages Are at Stake – Cases involving significant financial harm justify contingency representation because the potential recovery supports both client compensation and attorney fees.
Hourly Fees Would Be Prohibitive – When hourly fees would cost $200,000, $500,000, or more, contingency representation removes the financial barrier to pursuing valid claims.
Cash Flow Constraints Exist – Businesses that cannot afford to pay $30,000–$100,000 per month in legal bills can still pursue their rights with contingency representation.
Risk Avoidance Is Important – When you cannot afford the risk of paying substantial legal fees without guaranteed recovery, contingency representation eliminates that risk.
Strong Cases on the Merits – Cases with clear liability, solid evidence, and defendants who can pay judgments are ideal for contingency representation.
Alignment of Interests Is Desired – When you want your attorney’s financial interests completely aligned with yours, contingency representation provides that alignment.
The True Cost of Not Pursuing Valid Claims
One often-overlooked cost is the financial loss that occurs when valid claims go unpursued because hourly fees are unaffordable:
- Fraud losses that are never recovered
- Breached contracts where you absorb the damages
- Stolen business opportunities that go uncompensated
- Partnership misconduct that benefits the wrongdoer
- Shareholder oppression that continues unchecked
When hourly billing makes litigation financially impossible, wrongdoers face no consequences and you absorb losses that should be compensated.
Melmed Law Group’s contingency model solves this problem. The lawyers at Melmed Law Group take on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.
This structure allows you to pursue valid claims that would otherwise be economically infeasible.
Making the Right Choice for Your Business
When evaluating how to pursue business litigation, consider:
- Can you afford $50,000–$250,000 upfront for a retainer?
- Can your business sustain $30,000–$100,000 monthly legal bills for 18–36 months?
- Can you risk spending $500,000 in legal fees for uncertain outcomes?
- What happens to your business if you pay these fees and lose the case?
For most businesses, the answers to these questions make contingency representation the clear choice.
Melmed Law Group takes on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.
This model provides:
- Zero financial risk
- No upfront costs
- No ongoing monthly bills
- Guaranteed positive net results
- Complete alignment of interests
- Access to experienced representation
Contact Melmed Law Group
If your business has been harmed by fraud, breach of contract, breach of fiduciary duty, or other wrongful conduct, the lawyers at Melmed Law Group offer a free initial consultation to evaluate your case.
Don’t let the fear of hourly legal fees prevent you from pursuing justice and compensation. With contingency representation, you can pursue your rights without financial risk.
Contact Melmed Law Group today. Remember: Melmed Law Group takes on business litigation cases on contingency, which means the firm’s compensation is tied directly to the results obtained for you. If Melmed Law Group recovers money through settlement or judgment, the firm receives a percentage of that recovery. If Melmed Law Group doesn’t recover anything, you owe nothing in attorney’s fees.