How to Maximize Value for Your Attorney Fee
Dollars:
Tips to Decrease your Legal Bill
By: Gary J.
Jaburg
If you are faced with needing the services of an attorney either
for a personal matter or a business matter, the cost of quality
legal services may seem expensive The more educated you are
about purchasing legal services, the more value you will
receive. The following are 10 important considerations when
hiring an attorney.
Know when to use a
lawyer
The old cliché of "an ounce of prevention is worth a pound of cure"
is especially relevant with legal services. It is relatively
inexpensive to have an attorney review or help negotiate a
contract. Compare that to the cost of litigating an ambiguity
or a "what if" that was not anticipated. Verbal agreements
and "simple" contracts created without the benefit of a lawyer are
often a precursor to expensive litigation to resolve an ambiguity
or misunderstanding.
Select the right attorney for
your legal need
Find an attorney who has expertise in your particular matter.
I am frequently surprised that more clients do not specifically ask
their attorney how often they have dealt with matters similar to
their issue. Most attorneys charge by the hour. Knowing
what to do, how to do it, and when to do it, can make the cost for
an experienced attorney significantly less than an inexperienced
attorney who is learning at your expense.
You also need to match the complexity of the matter with the
specific experience of the attorney. While it is obvious to
most people that if you have a large complex matter you need an
attorney with experience in handling large complex matters, what
many clients do not appreciate is that such an attorney would not
be the best choice for a basic contract dispute. The same
applies to transactional attorneys. The expertise and
experience to handle large complex transactions does not translate
into the best attorney to draft a relatively simple
contract.
The hourly rate does not
necessarily correlate with the actual cost
Logically, you would assume that an attorney at $400 per hour costs
more than an attorney at $300 per hour. Not
necessarily! For a variety of reasons the attorney charging
less per hour may actually be more expensive. Attorneys, who
have comparable skills, hourly rate may vary by 20% or 30%.
However, the time clients might be billed for resolving the issue
can vary by up to ten times. The final cost, in part, depends
on the attorney's strategy and tactics in dealing with the
problem.
What is it really going to
cost?
An informed consumer would never think of taking their car to the
dealership, be told that they charge $100 per hour for repair work
and just tell the dealer to "fix it". Like all goods and
services you purchase, you want to know as precisely as possible
what the actual cost of your legal matter is going to be.
While some legal services are not as susceptible to precise pricing
as others, it is almost always possible to develop more specificity
to the actual cost of resolving the issue. For example,
pricing could be based on an hourly rate not to exceed a specified
amount. Under certain circumstances, the fees could be a set
dollar amount, plus a certain percentage or recovery known as a
modified contingency fee arrangement. A contract or
transaction could be a flat amount to prepare the contract and a
different price depending upon negotiations and revisions to
complete the transaction. As many attorneys may under estimate the
actual amount of time it will take to perform a task, it is almost
always to the client's benefit to get the attorney to commit to a
flat fee or a not to exceed fee. Even if the ultimate price
for a flat fee is the same or slightly higher than it would have
been if priced by the hour there is psychological comfort to both
the client and their attorney to know what a project is going to
cost so that expectations are aligned.
Most attorneys ask for a retainer at the inception of a new legal
matter. It is important to note that the retainer is
NOT an estimate of total fees, unless
the attorney specifically states this. Retainers are often a
"good faith" prepayment of the initial work.
Be efficient - don't spend
your attorney's time and your money wastefully
Come to the first meeting or consultation with your attorney,
prepared and organized. If the facts and circumstances
surrounding your issue are complicated, prepare a simple narrative
providing significant dates, amounts in controversy, if applicable,
and the essential facts of your situation. This is a more
efficient way to transfer information than having your attorney ask
multiple questions to obtain information. In addition, you are more
likely to remember all of the vital facts if you put them in
writing. Bring all relevant documents with you. If the
matter involves a real estate transaction bring all of the closing
documents. If it involves a contract dispute bring the
contract and all correspondence before and after the contract was
signed. Little discrepancies can make big differences in the
legal world. If your attorney knows the specifics and nuances
of your issue, they will be more effective and hopefully more
efficient as they developing a strategies and tactics to resolve
your issue.
Discuss and establish your
goals
If not at the initial meeting, shortly thereafter, discuss your
goals in resolving your legal matter. What is the most
realistic outcome for you? There needs to be a mutual
agreement between yourself and your attorney on essential
elements.
Establish shared expectations as to the probable result, such as
money to be received or paid if it is a litigation matter, or
essential deal terms if it is a contract. Create common
expectations as to the anticipated time frame, costs and legal fees
to resolve your legal issues.
Establish a strategy and
tactics to reach your goals
If not at the initial consultation, shortly thereafter, your
attorney should establish a strategy for achieving your goals and
the underlying tactics to support the strategy.
Unfortunately, all too often, attorneys have not formulated their
strategy and tactics to support their client's goals early in the
representation. Without a game plan, you may spend more in
attorney's fees.
"Reality check" your
attorney's strategy and tactics
Do not assume the attorney understands your business and all of the
ramifications of their strategy and/or tactics on your
business. Ask clarifying questions. Play devil's
advocate. Keep in mind that the best strategy will fail if it
is not supported by well-reasoned and skillfully executed
tactics. Conversely, the tactics can be executed perfectly
but if your attorney has a flawed strategy - or it doesn't align
with your business - it is unlikely that will not achieve your
goals.
Communicate with your
attorney efficiently
Most attorneys will bill you in one-tenth's of an hour or six
minutes. If you ask one question in five different telephone
calls you may get five different six minute billings for a total of
30 minutes. If you ask five questions in one telephone call
you will only get billed for that call and most likely it will be
for less than 30 minutes. If you ask the questions in an
e-mail, it may be even more efficient. Written communications
are generally more time efficient and -importantly - help avoid
misunderstandings. Face-to-face meetings should be reserved
for important complex issues and they will almost always take
longer than either sending e-mails or telephone
calls.
Don't zigzag on your goals,
strategy or tactics
If you have chosen the right attorney, provided the appropriate
documents and information to them and have spent time developing
reasonable goals, underpinning those goals with a well thought out
strategy and tactics; there should be no reason to significantly
adjust your plan. In some legal situations facts and
circumstances change and these changes may require a modification
of your - and your legal team's - goals, strategy and
tactics. Significant changes in any crucial areas can have a
considerable cost impact on resolving your legal matter. As
circumstances change and your goals, strategy or tactics need to be
modified make certain that you again have established reasonable
expectations with your attorney.
Conclusion
Find the right attorney who has expertise in your legal
matter. Ask about the fee arrangements and educate yourself
on how the attorney bills his clients. Be prepared at your
initial meeting with them and plan a strategy for resolving the
conflict or issue. Don't be surprised, if the strategy is
revised if facts change. Be efficient in using your
attorney's time and in doing so, you will be efficient in using
your money.
About the author: Gary J.
Jaburg is the managing partner of the Phoenix law firm of Jaburg Wilk. He assists
clients with business
matters, workouts
of financial issues and business
divorce. Gary can be reached at 602.248.1020 or gjj@jaburgwilk.com.
This article is not intended to provide legal advice. Always
consult an attorney for legal advice for your particular
situation.
3200 North Central Avenue
. Phoenix . Arizona