Billable hours are still king of the castle when it comes to law firm billing. Alternative fee arrangements, however, are increasing in popularity for a variety of reasons, according to The Metropolitan Corporate Counsel. The alternative billing scheme can be a benefit to both a firm and clients.

Some 56% of in-house counsel polled in a recent survey responded that alternative fee arrangements may be here to stay. Why? Because they often provide a more predictable measure of costs to clients. Although this may not necessarily translate into savings for a client (or losses for a firm), it can serve to keep business coming in – a welcome sign for many firms hit hard by the recession.

“People are afraid there will be a drop-off in quality in an alternative fee arrangement. They’re worried they will never get the best people working on their account – that they will never get the A-team,” according to Gordon Wylie, Litigation Counsel at Guardian Life Insurance. These concerns are slowly eroding away, however, as evidenced by the increase in alternative fee arrangements.

Related Resources:

  • Alternative fee arrangements gain popularity (Dayton Business Journal)
  • The Endangered Billable Hour (FindLaw’s In House)
  • How Much Should You Charge for Your Service? (FindLaw)

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