3 things you should be happy about before you hire a lawyer.

animals-talking

Hiring a lawyer is a big, BIG deal. As I’ve said before, a great lawyer will facilitate your business and help you get to the next level, a bad lawyer will leave you feeling frustrated, perplexed and out of pocket. So when you decide to give some of your hard earned profits to a lawyer, you need to make sure that you get it right. Here are 3 things you should satisfy yourself of before you sign that retainer!

  1. Do you believe them? Lawyers are great talkers AND charmers. As soon as you tell them what you need help with, they will tell you that that specific thing is their particular expertise (sorry fellow lawyers). I’ve seen it done many times. A prospective client asks for help contracting with aliens on Mars and suddenly that lawyer has not only done some similar work in the past, they’ve been to Mars and had dinner with those very aliens! Don’t get me wrong, lawyers are excellent at coming up to speed on any issue, even if they’ve only remotely come across it before however you should still make them prove themselves! So the questions you have to ask are why can they do the job and will they do the job? The answers will help you to decide whether to believe them. WHY – ask for their qualifications and their actual experience. Ask them questions about your business and your industry – do they really know what they’re talking about? WILL – as you already know, in business, execution is key. You need to be confident that your lawyer will actually do what they say they will and that you won’t be chasing for updates. Do they have the relevant resources? In respect of bigger instructions, do they have a team to carry out the work? If they prove that they can do the work and will do the work in good time, then you can believe them. Stay away from the lawyers that reel off their client list to try and impress you….you could end up being the back of the queue.
  2. How do they help their community? Good old corporate responsibility! Do not over look this. Lawyers will flatter you to high heaven and impress you with their catalogue of work BUT a good way to tell if they really CARE is by assessing their charity. The best law firms know this and have a glossy pro bono team offering free legal services to those unable to afford legal representation. They also send their lawyers out to lecture, teach or tutor in their spare time. If you hear about a law firm or lawyer working in the community, that’s usually a sign that they have a soul and really will do what they say they will do. Ask the prospective lawyer what they do outside of work in their wider community?  What are their interests? This will also help you to get to know their personality and decide whether you  actually LIKE them.
  3. Meet everyone! In most cases your lawyer will be supported by a team of junior lawyers which they may head up and those junior lawyers will be the ones doing the work.  Ask to meet those people so that you can assess their personality and their experience. Are they bright? Do they know about your business or will they just be taking orders? How does the team function? It is important to feel confident that you will be looked after and that everyone who handles your work will give it the same level of care and attention. Also, meeting the team will inspire them. If that junior lawyer can out a face to the email address, they’ll work harder!

Ok so those are my 3 things to be happy  about before you hire a lawyer. It is well known that legal fees are not cheap BUT that doesn’t mean that you should part with your money just like that. You need to make sure that you’re in good hands. It’s not just about getting the work done. Engage a lawyer that you would want to hire as an employee in your business. The lawyer/client relationship is one that is built up and developed over years, so get it right!

Please like and please share.

Advertisements

Legal fees can be flexible.

 

seal-pup-watches-you-upside-down-big

How many of you pay your legal fees as part of a pay as you go plan? It’s expensive right?The reality is that a good lawyer with some sort of experience, should be able to give you a fee quote give or take a few pounds. They should be able to offer you some sort of fixed fee arrangement . HOWEVER there are circumstances where legal fees can easily spiral out of control and such circumstances tend to arise in litigation. Often lawyers can get away with saying “how long is a piece of string” when it comes to estimating their legal fees in litigation and this is UNFAIR because in litigation there is NO guarantee that you will win. You could easily pay £50k in legal fees and not see a dime from the other side or even have to pay the costs of the other side too! SCARY!

The good news is that there is a way to get lawyers to buy into the risk of litigation and CARE about that piece of string. In the UK there are Conditional Fee Agreements (CFAs) and Damage Base Agreements (DBAs) and they are pretty good at encouraging realistic assessments of litigation, from your lawyer. Here’s a brief breakdown.

CFAs

A CFA is an agreement whereby a lawyer and a client can agree to share the risk of the litigation by coming to a financial arrangement whereby part or sometimes all of the solicitors’ fees will only be payable by the client in the event of success. So for example you might agree that you only pay your legal fees if you win (your lawyer will scream) but in return for the risk that you may lose, your lawyer might say ok but you will have to pay me an additional amount of X% of my fees if you win (you will scream BUT it’s not a bad offer as this only arises if you win). Or you may say to your lawyer I will pay you half of your fees and if I win, I’ll pay the other half. Your lawyer may say ok but, again, if you win, you pay the other half and a success fee of x% of my total fees. Can you see the bargaining power shift and settle in these examples. Each side has a stake in the litigation. You care because it’s your law suit BUT now your lawyer cares because he or she may not get paid!

DBAs

A DBA is an agreement between a lawyer and a client under which the client agrees to pay the lawyer a percentage of its damages if it wins its law suit. So for example you might agree with your lawyer that if you win your claim for breach of contract which is worth £300,000, your lawyer will get half of whatever you recover from the other side. This is  a huge risk for your lawyer as they won’t be getting paid unless you win BUT it forces your lawyer to consider if the claim is actually worth bringing. Your lawyer will be forced to seriously consider whether they will realistically get paid and therefore whether you have a decent case. You can make DBAs more complex too. For example you may say if you win £300,000 from the other side, your lawyer gets 50%, if you win £200,000 from the other side your lawyer gets 40% and if you win £100,000 your lawyer gets 30%.

Also do not forget FIXED FEE arrangements. If you are instructing your lawyer to do some standard conveyancing work or some corporate work, get a fixed fee! They do that kind of work all the time so the variables never really grant a “pay as you go” regime. If you are not in the UK I’m sure that these payment plans exist in some form or other in your country, so look it up!

Please like and please share!