navigating the world of alternative fee arrangements the network of trial law firms
DESCRIPTION
Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms Litigation Management: Driving Great Results Naples, Florida May 12-15, 2011 Linda S. Woolf Goodell, DeVries, Leech & Dann, LLP Baltimore, Maryland. Panel Members. Linda Woolf Goodell, DeVries - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/1.jpg)
Navigating the World of Alternative Fee Arrangements
The Network of Trial Law FirmsLitigation Management: Driving Great Results
Naples, FloridaMay 12-15, 2011
Linda S. WoolfGoodell, DeVries, Leech & Dann, LLPBaltimore, Maryland
![Page 2: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/2.jpg)
Panel MembersLinda Woolf
Goodell, DeVriesKevin Schiferl
Frost Brown ToddNicole Bearce Albano
Lowenstein SandlerRick Barnes
Goodell, DeVries
Marjorie Adams-FranzblauADP
Rita McConnellMedtronic
Michael TroisiSamsung Electronics
![Page 3: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/3.jpg)
What’s on the AFA Menu?Risk CollarFixed/Flat FeePhased feesFee Cap PricingTask-Based BillingBlended Hourly PricingReverse ContingencyVariations of all of the above and more
![Page 4: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/4.jpg)
Real Life Experiences with AFAs
MedtronicFord Motor Co.ADPSamsungExperiences of Outside Counsel
![Page 5: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/5.jpg)
Advantages of AFAs for the ClientsPerspective of corporate counsel
Cost CertaintyAlignment of Interests and GoalsEliminate time spent reviewing budgets and billsLaw firm shares in riskInstills trust and loyaltyEarly assessment of case
adds value later
![Page 6: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/6.jpg)
Advantages of AFAs for Law FirmsPerspective of outside counsel
Predictable incomeStronger relationshipBetter understanding of client’s goalsEliminate time spent on
budgeting and billingReduce conflicts over
billing issues
![Page 7: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/7.jpg)
Concerns/Disadvantages of AFAs for Clients
Perspective of corporate counselEarly resolution makes AFA a bad dealPush down of work to less qualified attorneysAFA matters put on back burnerFinancial cushion required by law firm may be
too largeSmaller companies lack experience to properly
price AFAs
![Page 8: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/8.jpg)
Concerns/Disadvantages of AFAs for Law Firms
Perspective of outside counselRequires time up front for which law firm may not
be compensatedDifficulty in pricing case/engagement correctlyDifficulty determining individual attorney
compensationRisk that cost overruns will be shifted to law firm
![Page 9: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/9.jpg)
Concerns/Disadvantages of AFAs for Law Firms
Perspective of outside counsel (cont’d)Training attorneys to focus on efficient
resolution rather than billable timeChange or increase in client’s demandsAgreeing on what is considered a “win”
![Page 10: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/10.jpg)
Ethical Implications of AFAs
Detailed written agreementsInterests of lawyer and client divergeTermination of relationship mid-streamEntering into partnership with non-lawyersStaffing and prioritizing cases with best
interest of client in mind
![Page 11: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/11.jpg)
Metrics
Monitoring and evaluating an AFA program
![Page 12: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/12.jpg)
Practice Pointers
Do your homework in advanceOne size does not fit allInclude fail-safeSpread the riskInvest in up-front time with clientFlexibility is keyKeep lines of communication open
![Page 13: Navigating the World of Alternative Fee Arrangements The Network of Trial Law Firms](https://reader035.vdocument.in/reader035/viewer/2022062520/56815c76550346895dca8bac/html5/thumbnails/13.jpg)