Client Choice: Flat Fee vs. Hourly Rates
The problem with this revolution, though, is that firms that are switching to fixed fee billing are making the same mistake that the traditional hourly billing model makes. These firms are assuming that they know what is best for their clients.
I often tell my clients that they set the goals, and my job is to tell them whether I can meet those goals or not. If I think we can meet the goals, then my job is to use my knowledge of the court process and negotiation to try to reach those goals. In the same way that I do not believe that I can set a client's goals for them in a case, I don't think that I should set their financial goals for them either.
The main disadvantage of flat fee billing is that both the attorney and the client take a risk. If the client refuses to settle the case, or the other party refuses to settle, and the case is litigated, the attorney will likely spend more time than they assumed when quoting the fixed fee. The attorney can accept this risk because they represent multiple clients and the cases that settle quickly will outweigh these cases. The client's risk, however, is that the flat fee is more than they would have spent if their case settles quickly. The client's gain is the settlement, but they do not recover for this risk in other areas of their finances. The law of averages favors the attorneys.
Do the disadvantages outweigh the advantages? Isn't that for the clients to decide? After all, it's their money. That is why at Kelsey & Trask, P.C. we offer both hourly rate representation and flat fee billing. Call us for a free one hour consultation at (508) 655-5980 and let us know if you are interested in a flat fee quote or hourly rate billing (or learn about both options).
This entry was posted on at 9:00 AM and is filed under divorce, flat fee, hourly rate billing. You can follow any responses to this entry through the RSS 2.0. You can leave a response.
- No comments yet.
VIP Followers
Info recommended by:
Webpages of law
Popular entries
-
Several in-the-know readers have passed along an incendiary anonymous memo making the rounds among administrators and trustees regarding fin...
-
UPDATE: There is pending legislation for major changes to the alimony statute in Massachusetts. The Alimony Reform Act of 2011 was filed on...
-
500 Coke employees lost their health insurance the day after they went on strike. The union has sued under ERISA , claiming the action wa...
-
Two weeks ago, a Florida man was arrested for logging on to his Facebook account and requesting that his estranged wife list him as a "...
-
Medical marijuana legal in some states, is creating some employment law problems . Seems employees with prescriptions for medicinal use of ...
-
Today marks day 100 of the Mott's strike . The pro-union writer, Michael Winship, does a pretty good job of outlining the economics of ...
-
This business owner's letter to the editor makes a strong case for preservation of the secret ballot for determining a union's maj...
-
Here is another example (the leather goods industry) of the absolute collapse of domestic manufacturing causing the elimination of high pa...
-
Responding to a request from Congressman Darrell Issa (R. CA), David Berry, the Inspector General for the NLRB has determined Craig Becke...
-
Attorney Kelsey will be appearing on Money Matters with Scottie McCall on Friday, April 30, 2010 at 3:30 P.M. Attorney Kelsey will discuss...