Attorney Grievance Commission explores flat fee challenges in criminal defense cases

During a recent administrative public hearing held by the Michigan Supreme Court, discussions centered on the complexities of attorney fee structures, particularly in criminal defense cases. The meeting, which took place on May 21, 2025, highlighted concerns regarding the fairness and transparency of flat fee arrangements for legal consultations.

One key issue raised was the challenge of determining the value of initial consultations, especially when attorneys charge a flat fee of $1,500. Participants noted that while some attorneys may charge this amount for a single hour of work, the rapid pace of criminal defense cases complicates how these fees are justified. The conversation underscored the need for clarity on how attorneys can invoice clients fairly while ensuring that clients receive adequate representation.

A suggestion was made to require attorneys to deposit flat fees into an Interest on Lawyers' Trust Accounts (IOLTA) for a brief period before transferring them to their operating accounts. This approach aims to mitigate concerns about non-refundable fees and protect clients' interests. The discussion acknowledged that advancements in technology have made managing these transactions easier, reducing the burden on attorneys.

The hearing concluded with a call for further examination of these practices to ensure they align with the best interests of clients and the legal profession. As the Michigan Supreme Court continues to refine regulations surrounding attorney fees, the outcomes of these discussions could significantly impact how legal services are delivered and perceived in the community.