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

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Specifically, they want to know more about flat-fee billing, a method that can prove more client-friendl y than hourly billing. Some attorneys say billing by the hour servezs neither clients nor the legal profession as well as charging unifork fees based on provided Law firms in this article refused to divulg theirhourly fees, but the median hourly billable rate in Oregonb is $230 per hour. Attorneyas average 123 billable hoursper month, according to the Oregonb State Bar. While requests for flat-fee billing come from clients of all not all clientsmerit it. “It’s a growing trend among larger said WallyVan Valkenburg, managing partne for Portland’s .
“Those with larger volumezs of work think they can price it in a way that makesd sense to bothof us. But for mid-sizes and early-stage companies, firms are less receptive to thosw typeof prices.” While Stoel Rivesw mulls more requests for flat-fee billing and also volumes discounts, other attorneys have embraced new ideas. “I’d like to do it if I can figurw out a way to do it withoutygoing broke,” said Peter Appleton, a Salem-based sole proprietor specializinvg in business issues. “Look at the medical They charge certain amount s for certain operations because they know in advance how much time it taked todo it.
“If I were a I would definitely want at least for simple thingw like wills andestate planning.” Ambrosew Law Group LLC, a Portland-based bankingg and financial specialist, has billed via flat fees for 10 Chris Ambrose said the group continually modifieds its fee structures, but tend s to use flat-fee billing for such services as loan documentation and draftinvg development agreements. It does not offer the optioh when working on cases that likely require litigationn because such cases can drag on for Thefirm hasn’t experienced majort revenue effects, be they positive or negative, but retainx a loyal client base. “It gives them predictability,” Ambros e said.
“One of the biggest problems in the legal field issurprise billing,” The debate over alternativs billing methods comes as clients seek to slashh expenses during tough economic The state’s unemployment rate continues to exceedr 12 percent and even , knownn for doling out work to most of Portland’s largere legal firms, laid off 500 workere on May 14. Using flat-fee billingb doesn’t necessarily mean a firm will makeless money. The Shepherf Law Group, in Boston, began usinb flat-fee billing on Jan. 1, 2007. Revenue that year rose by 250 percen t comparedto 2006.
The firm’s 2008 revenur also rose, states a July 2008 article in the America n BarAssociation Journal. However, many law firms have resisteds the urge to chargeflat fees. Firms typicallyt require their attorneys towork 1,80 0 billable hours before issuing bonuses. Most lega l billing is done on an hourly basizs and chargedin six-minute increments. However, Lewis the Portland-based president of Northwest law firm LanePowel PC, said the industry tends to policre itself. “Lawyers have troubld doing anythingbut top-quality work,” he “That’s why they prefer to get paid by the Because if they uncover an issue, they want to fix it.
” Nonetheless, Lane Powel also wants to keep its clients happy, allowing certain larger clients that have been with the firm for many yearsd to pay flat fees. One of them is a real estate outfitt that’s currently working on 50 deals. Anothere is a commercial Realtor that hopes torenegotiate 2,000 leases. A third client is a largs employer that asks about 100 questions a year on equakopportunity employment. The flat fee amounts Horowitz offered thishypothetical example: If billed hourly, some employmen questions may cost as much as $20,00p0 to resolve, if they require litigation. Others can cost as littl as $3,000.
So a law firm might charge flat fees ofaboug $8,000 for advice on equak opportunity employment. “It works best with clients with whom you have a good Horowitz said. “And it’s not made available on a one-timse basis. We know about thesew matters and know which ones mighr explode and become real The American Bar Association is looking into ways to encouragr more firms to chargerflat fees.