A fee agreement may describe a consultation charge, contingent percentage, stage change, case expenses, advanced costs, outside services, trust funds, termination terms, and a closing statement. Those entries can change at different points in a matter and should not be reduced to one phrase such as “no upfront cost.”

A fee-and-expense ledger should connect every agreement term, percentage, stage, expense, authorization, advancement, receipt, statement, trust transaction, reimbursement, dispute, and closing entry to its source without estimating the client’s net result from incomplete figures.

Begin with the signed agreement and every amendment

  • Client, lawyer, firm, matter, included and excluded work, effective date, signature date, and any condition before representation begins
  • Fee method, percentage or formula, calculation base, stages or events that change it, appeal or separate-matter terms, and termination provision
  • Whether identified expenses are advanced, approved, deducted, reimbursed, charged separately, or owed if no recovery occurs
  • Original agreement, revised agreement, addendum, outside-counsel agreement, referral or fee-sharing disclosure, and written question log

North Carolina Rule of Professional Conduct 1.5 addresses fees and expenses. Its contingent-fee provisions include a signed writing that explains how the fee is determined and whether litigation and other expenses are deducted before or after the fee calculation. The actual written agreement controls the ledger fields for the particular matter.

Record case expenses one transaction at a time

  • Date, vendor, category, description, matter connection, amount, tax, refund, credit, invoice, receipt, payment method, and person who paid
  • Client approval required, approval requested, response, limit, person authorizing, and agreement provision
  • Firm advance, client payment, third-party payment, trust-account payment, later reimbursement, write-off, dispute, or unresolved entry
  • Medical record, imaging, filing, service, transcript, deposition, witness, professional review, investigation, travel, copying, technology, mediation, arbitration, or another actual category without inventing a charge

Keep entrusted-fund records separate from the fee calculation

North Carolina Rule of Professional Conduct 1.15-3 addresses records and accountings for entrusted property. Its requirements include records of receipts and disbursements, client ledgers, and accountings in stated circumstances. A client-facing ledger can compare statements and source documents, but it is not the firm’s trust-account system and should not be used to alter accounting records.

  • Gross receipt, source, date received, trust deposit, client ledger entry, disputed amount, hold, and written notice
  • Disbursement date, payee, purpose, authorization, check or transfer reference, supporting invoice, and cleared status
  • Fee transfer, expense reimbursement, medical or lien payment, client remittance, retained balance, and reason for retention
  • Statement date, version, correction, question, response, unresolved difference, and final reconciliation

Recalculate from the written formula, not a remembered percentage

  • Recovery or other receipt identified by source and whether the agreement includes it in the calculation base
  • Fee stage and formula in effect, event triggering a change, calculation date, and reviewer
  • Expense deduction order, advanced expenses, client-paid expenses, outside obligations, and items excluded from the fee provision
  • Illustrative estimate labeled as an estimate until funds, balances, disputes, and written terms are verified

Use the communication record to resolve questions

North Carolina Rule of Professional Conduct 1.4 addresses keeping a client reasonably informed, responding to reasonable requests for information, and explaining a matter sufficiently for informed decisions. Record the question, document, calculation, date sent, responsible person, response, correction, and remaining issue rather than silently changing a ledger entry.

The State Bar’s before-you-hire guidance recommends discussing fees, expenses, communication, and the written agreement. The related guide to free consultations, contingent fees, and case expenses explains those concepts before an agreement is signed. This page owns the later transaction-by-transaction tracking during the matter.

Rosensteel Fleishman Car Accident & Injury Lawyers provides general information about North Carolina personal-injury representation and written fee questions. The signed agreement, current statements, trust records, third-party obligations, and matter-specific facts govern an actual calculation.

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