While hourly billing still dominates, alternative billing arrangements are on the rise. Faced with increasing client desire for more flexible arrangements, lawyers and law firms are experimenting with billing. Alternatives may include not only flat fees and contingency fees but “blended” fee structures, use of “success” fees, so-called “value billing,” and most recently, the “unbundling” of legal services. Under unbundling, clients engage a lawyer for limited and specific legal tasks, rather than for a full representation.
In this seminar, we review the existing principles on ethics in billing, and apply them to some of the latest developments in law firm billing arrangements. Topics include:
- The legal ethics rules applicable to billing arrangements
- The variety of new billing methods, and types of matters for which they work best (and worst)
- The meaning of a “reasonable” fee under alternative billing arrangements
- The lawyer’s duties with respect to advance fee payments, non-refundable fees, and earned and unearned fees
- The very recent changes to the ABA Model Rules to encourage and promote “unbundling” of legal services
- The latest ABA ethics opinion on changing billing arrangements during a representation