Flat-fee billing settles in; billable hour stays king - bizjournals:

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Specifically, they want to know more about flat-fee a method that can proved more client-friendly than hourly Some attorneys say billing by the hour servezs neither clients nor the legal professiohn as well as charging uniform fees based on provided Law firms in this article refused to divulgew theirhourly fees, but the medianh hourly billable rate in Oregonj is $230 per hour. Attorneys average 123 billable hours per according to the OregobnState Bar. While requests for flat-fee billing come from clientss ofall sizes, not all clients merit it. “It’s a growing trend among larger clients,” said Wally Van managing partnerfor Portland’s .
“Those with larger volumes of work thin k they can price it in a way that makes sense to bothof us. But for mid-sizeds and early-stage companies, firms are less receptive to those type of While Stoel Rives mulls more requestsfor flat-fewe billing and also volume discounts, other attorneys have embraced new ideas. “I’c like to do it if I can figure out a way to do it withoutgoing broke,” said Peteer Appleton, a Salem-based sole proprietoe specializing in business issues. “Look at the medicalk profession: They charge certain amounts for certain operations because they know in advancd how much time it takes todo it.
“If I were a I would definitelywant this, at leasft for simple things like wills and estate Ambrose Law Group LLC, a Portland-based banking and financiak specialist, has billed via flat fees for 10 Chris Ambrose said the group continually modifies its fee but tends to use flat-fee billing for such service s as loan documentation and drafting development agreements. It does not offefr the option when workingv on cases that likely require litigation because such cases can drag onfor years. The firm hasn’f experienced major revenue effects, be they positivee or negative, but retains a loyal client base. “It gives them Ambrose said.
“One of the biggesf problems in the legal fielr issurprise billing,” The debate over alternatived billing methods comes as clients seek to slash expenses during tougg economic times. The state’s unemploymeny rate continues to exceed 12 percent andeven , knowhn for doling out work to most of Portland’s larged legal firms, laid off 500 workers on May 14. Using flat-feed billing doesn’t necessarily mean a firm will make less The ShepherdLaw Group, in Boston, begaj using flat-fee billing on Jan. 1, 2007. Revenue that year rose by 250 percentf comparedto 2006.
The firm’z 2008 revenue also rose, statesa a July 2008 article in the Americabn BarAssociation Journal. However, many law firmws have resisted the urge to charge flat Firms typically require their attorneys towork 1,80o billable hours before issuing bonuses. Most legal billin is done on an hourly basis and chargefin six-minute increments. However, Lewis Horowitz, the Portland-based presiden of Northwest law firm LanePowell PC, said the industrgy tends to police itself. “Lawyers have troublr doing anythingbut top-quality work,” he said.
“That’s why they prefer to get paid by the Because if they uncoveran issue, they want to fix Nonetheless, Lane Powell also wants to keep its clientz happy, allowing certain largedr clients that have been with the firm for many yearsx to pay flat fees. One of them is a real estate outfit that’s currently working on 50 deals. Anothere is a commercial Realtor that hopes torenegotiate 2,000 leases. A third client is a large employerr that asks about 100 question a year on equalopportunity employment. The flat fee amounts vary. Horowitz offered this hypothetical example: If billed some employment questions may cost as muchas $20,0009 to resolve, if they requires litigation.
Others can cost as little as So a law firm might charge flat fees of about $8,000 for advice on equal opportunit employment. “It works best with clientas with whom you have agood relationship,” Horowitz “And it’s not made available on a one-tim e basis. We know about thesw matters and know which ones might explode and become real The American Bar Association is looking into ways to encouragd more firms to chargeflat fees.