How Flat Fee Billing Savings on Legal Fees Can Evaporate When Other Factors Are Considered

“When fully paid beforehand, you are more than a common mortal if you can feel the same interest in the case, as if something was still in prospect for you, as well as for your client. And when you lack interest in the case the job will very likely lack skill and diligence in the performance.” A. Lincoln

In looking back at prior posts for the past couple of years, I see that I made some promises to follow-up on some posts with some additional information or insight. So a part of my New Year’s resolutions for 2016 will be to make good on these promises. And to get a start on this resolution, I will follow-up a prior post on Alternative Fee Agreements (AFA) entitled “Alternative Fee Agreement Savings: Real or Illusory?”

In my prior post on AFA, I wrote that the articles on the successes of AFA tend to state success in a conclusory fashion and offer few, if any, details on how that success is measured. As I noted, I am left to wonder if the insurer or corporation using the AFA “actually reduced legal costs by some degree, are they still paying too much for legal expenses? (If not, how do they know this?)” Also with regard to insurers with flat fee agreements for litigated files, I wanted to know “how did the flat fee agreements affect cycle times or indemnity results?”

[For a complete copy of this post please copy clientservices@legalbillaudit.com.]

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