Contain legal costs (part 2 of 3): Consider alternate fee arrangements
Tuesday, January 13th, 2009The billable hour has been the Holy Grail of the legal profession for many years. It has always been under attack to some degree for promoting inefficiency. However, the attacks have been increasing and even large prestigious firms are taking note. Famous author/lawyer Scott Turow offered his thoughts on the subject in an article titled “The Billable Hour Must Die” and NYC megafirm lawyer, Evan Chesler, from Cravath, Swain & Moore wants to kill the billable hour.
That’s good news for clients. Use the opportunity to explore alternate fee arrangements. Instead of the old hourly rate that encourages more hours instead of fewer, alternate fee arrangements such a flat fee arrangements promote efficiency and quick resolutions. When properly managed it aligns the interests between you and your lawyer and can save you money.
