Posted by Jamie Dokovna on May 14, 2012

Another Look at the Death of the Billable Hour

iStock_000002919926XSmall.jpgLast year, I wrote about an article written by a colleague of mine, D. Andrew Byrne regarding the billable hour and its demise.  Well, it seems that this topic has continued to generate interest in the business world and for good reason.  It simply makes sense because when it comes to clients, one size does not fit all when it comes to billing.

Alternative billing arrangements are nothing new for lawyers.  With the ever increasing cost of doing business, companies have to think about the bottom line and what makes sense when it comes to hiring and using law firms and lawyers. 

While the traditional billable hour model may make sense for some clients, not all clients can afford to do business entirely under that model.  And so, the push away from the billable hour model is occurring and the move for some is toward the alternative fee arrangement because the bottom line depends on it.

For some companies this means hiring more attorneys or assigning more work to their own company lawyers.  For others it means flat fee arrangements or contingency fee agreements but usually some form of billing other than the billable hour model. 

Either way, the message is simple: legal work needs to be cost effective for both the lawyer/law firm and the client.  Undoubtedly, the future of the billable hour is becoming less certain and staying competitive in the legal marketplace will inevitably have to include more alternative billing arrangements.

Posted by Gary Schaaf on April 29, 2011

If I win the suit, will the other side have to pay my legal fees?

franklins_color.jpgIt’s a question that my savvy litigation clients know to ask, before filing suit.  No one wants to go through the time and expense of a lawsuit, only to find, after winning the case, that they’ve spent more money on legal fees than they were awarded from the other side.

A good rule of thumb (with some procedural exceptions) is that the prevailing party in a lawsuit may be awarded fees only if a claim for fees is expressly provided in a contract or in a statute which is at issue in the lawsuit.  So, prevailing parties in negligence suits, for example, aren’t typically entitled to fees.

Keep in mind, however, that since only “reasonable” fees will be awarded, and the amount to be awarded is largely in the judge’s discretion, even if you win, you will rarely be awarded 100% of the money you spend on the litigation, and an award of fees is, of course, only as good as your opponent’s ability to pay.

One way to protect yourself, is to consult with counsel, before entering into any contract, regarding the pros and cons of including an attorneys’ fees provision.

Posted by Jamie Dokovna on April 05, 2011

The Death of the Billable Hour

A colleague of mine, D. Andrew Byrne recently wrote an interesting article about the billable hour called "The Birth and Death of the Billable Hour – One Approach for Dealing with the New Reality" [PDF] and why its death may be near.  When he first told me about the article, I could hardly wait to read it and now after reading it, I have to share it.

The article takes an interesting look at the origin of the billable hour and how one doctor’s idea of how to improve the quality of medicine is changing the way he practices.  By creating a checklist, an idea he borrowed from pilots, Dr. Atul Gawande says that he’s dramatically improved the results obtained during surgery.

For example, by doing something as simple as introducing oneself before surgery, Dr. Gawande found that doctors made 35% less mistakes because doctors were more willing to speak up if a problem arose.  While the task of creating a checklist may have seemed tedious, the results were undeniable – the checklist worked.

Applying this idea to the legal profession, my colleague makes a strong point that we need to spend more time upfront analyzing our cases before doing anything else which will allow us to better serve our clients.  I personally have witnessed this idea in action and think it’s how we should all practice. 

In fact, a client recently told my colleague that one of the reasons he recommended the firm was because of the way his case was handled from the beginning – a full analysis of the case and all related legal issues was thoughtfully prepared in advance of taking on his representation.  This helped the client and put us in a tactical advantage throughout the litigation.  By taking the time to analyze the case in the beginning and figuring out how to best serve the client’s interests and needs, we were able to achieve a great result and land another client!  Now that’s a win/win.