Fixed Fees Becoming Increasingly Popular At Many Law Firms
Over at LawBiz Blog, Ed Poll has written about the growing trend among law firms to make use of fixed fees rather than the more traditional hourly rates. Overall it appears to provide some advantages not only to the law firms in terms of profit, but it also is gaining favor with corporate clients. Most larger corporations have there own internal legal staff and by taking advantage of fixed fees, the budget is more carefully managed - definitely a plus in corporate culture.
Buying legal services is generally compensated, still, by the hour. But, according to Wall Street Journal writer, Ashby Jones, on May 2, 2007 (Marketplace Section) says that technology now permits law firms to gather cost information in greater detail than ever… and thus permits them to determine what it cost to deliver those services. With this, law firms are more willing to enter into fixed fee arrangements.
Despite this warm introduction, Poll goes on to warn that the increase in fixed fee billing may lead to a price war akin to cell phone services, airline tickets, and even perhaps used cars. But in the end, good legal counsel is worth the price and is a necessary component to any corporation’s operations.
13 May 2007 | Business, Litigation | Comments
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