13 Apr More on Flat Fees for Legal Matters – Call Us More!

In this continuing series on the benefits (and challenges) of flat fees for transactional legal services, here we focus on the way it changes the relationship between lawyers and their clients. Imagine the following really happens: you call your lawyer as much as you want during a deal and the fee is the same. Your lawyer is on a call with you and two other lawyers are on the call as well listening and taking notes, and you’re happy about it! Your lawyer works hard to complete the deal speedily and efficiently, not only because that’s his moral obligation, but because he has an actual financial incentive to do so.

Almost without exception, when I offer a flat fee to a client and talk about the benefits above, the client gets it immediately. Once you reach agreement on the amount, the ticking clock disappears. Clients really do love this. I know in hiring lawyers in my personal life (buying a house, etc.) I am very mindful of my lawyer’s time (and my bill) and don’t call except when it is very important. I want my clients to feel that they can consult with me on all matters large and small and not feel constrained by my hourly rate. As a legal team, it allows me the freedom to staff a deal as I deem appropriate without worrying about a client complaining about double (or triple) billing them for work. We know in the end the team approach is more efficient with much of the work handled by lower hourly rate lawyers, but the concept of multiple attorneys on a deal concerns some clients. Not with a flat fee!

Clients nearly universally embrace the flat fee idea. Why have law firms not done so? Fear. In future posts we can talk about ameliorating that fear with some of the keys to making flat fee arrangements work not only for the client but also for the law firm.