Alternative Fee Arrangements

more+
less-

The most significant current public discourse regarding law firm revenues is the increasing popularity of Alternative Fee (or Billing) Arrangements. The tide has even provided a generally accepted acronym of AFA. These arrangements are aimed at destroying or at least seriously maiming the invidious hourly billing process, which economically incentivizes inefficiencies and subordinates a law firm’s economic interests to those of the client. The hourly rate may be either dead, suffering a lingering death or in a simple state of somnolence, depending only on whether the observer is an optimist, a pragmatist or an ostrich. Nonetheless, keeping careful track of hours billed will remain a much needed tool to monitor productivity, efficiency and, most significantly, profitability on engagements.

The facts are plain. We all know about the rising tide of fixed fees, alternative billing, and holdbacks depending on results, success fees, radical convergence and fixed retainers. Let’s be completely clear on what this means: Clients, particularly those of significant economic clout are passing all or most of the risk on legal engagements to the law firm.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jerome Kowalski, Kowalski & Associates | Attorney Advertising

Written by:

more+
less-

Kowalski & Associates on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×