What type of fee structure involves a client paying a specified maximum amount to the law firm?

The fee structure in which a client pays a specified maximum amount to the law firm is known as capped fees. In this arrangement, the law firm agrees to limit its fees to a certain amount, providing clients with predictability and protection against unexpected legal costs. This allows clients to understand their financial obligations upfront, which can be particularly appealing for clients who may have budget constraints or want to manage their legal expenses effectively.

Capped fees are beneficial in situations where the scope of work can be reasonably estimated, allowing the firm to provide valuable services while still giving the client security in what they will spend. This structure promotes transparency and can foster a better attorney-client relationship, as both parties have a clear understanding of the financial implications from the start.