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LSDefine

Simple English definitions for legal terms

extraordinary compensation

Read a random definition: Juris Doctor (J.D.)

A quick definition of extraordinary compensation:

Term: extraordinary compensation

Definition: Extraordinary compensation is when a lawyer asks for extra money for doing special tasks that are not part of their usual job, like doing extra accounting during a tax audit. The lawyer has to prove to a judge that they deserve the extra money before they can get it.

A more thorough explanation:

Extraordinary compensation

Extraordinary compensation, also known as extraordinary fees, refers to the payment an attorney seeks for performing irregular tasks that are required in administering an estate. These tasks may include extra accounting during a tax audit or handling complex legal issues that are not part of the attorney's usual responsibilities. In order to receive the extra fees, the attorney must prove to a judge that the compensation is justified.

An attorney may seek extraordinary compensation for:

  • Handling a lawsuit or legal dispute related to the estate
  • Defending the estate against a creditor's claim
  • Preparing and filing complex tax returns
  • Managing and selling unique or valuable assets, such as artwork or real estate

For example, if an attorney is representing an estate that includes a valuable art collection, they may need to hire an appraiser, arrange for transportation and storage of the artwork, and negotiate with potential buyers. These tasks are not part of the attorney's usual responsibilities and may require a significant amount of time and effort. In this case, the attorney may seek extraordinary compensation for their work beyond their usual hourly rate.

Another example could be if an attorney is defending an estate against a creditor's claim. This may require extensive research, preparation of legal briefs, and court appearances. The attorney may seek extraordinary compensation for this work, as it is not part of their usual responsibilities in administering an estate.

extrajudicial | extraordinary fees

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