The way lawyers decide their fees depends on each lawyer. However, in general, there are two main fee structures.

First, there is a structure that combines a retainer fee and a success fee. Under this structure, the client pays an initial fee when the lawyer starts handling the case. If the case ends successfully, the client pays an additional fee based on the amount the client gains as a result of the case. The percentage of the success fee varies from lawyer to lawyer. In Japan, although the official fee schedule issued by the Japan Federation of Bar Associations was abolished, many lawyers still refer to the former standard in practice.

This structure is beneficial for clients because if they do not win the case, they do not have to pay the success fee. However, if the amount recovered is large, the success fee can also become quite high.

The other common structure is the hourly fee system, often called a time-charge system. Under this system, the client pays based on the time the lawyer spends on the case. The total fee depends on the lawyer’s hourly rate, the number of lawyers involved, and the time spent. This system makes it easier for lawyers to estimate their revenue. However, in cases involving a large financial claim, a success-fee structure may be more profitable for lawyers.