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April 17, 2006
More Comments on Exemplar, and Fixed-Price Alternatives to the Billable Hour.
Christopher Marston, the CEO of Exemplar Law Partners, the Boston-based fixed-price alternative, has joined the still-growing responses (15 total comments to date) to the two April 7 posts on The Billable Hour: Catching Up With Exemplar Law: "No Hourly Bills, No Hourly Bull" and One GC's Take on the Billable Hour, the latter based on comments by Rhino Linings GC James Holden. If I understand Christopher correctly, he argues in effect that fixed-price models are not only supportable in the actual legal services market but, if pursued and applied correctly, could (1) mold and re-define the market and (2) relegate The Billable Hour to a secondary role, if not kill it. Go here and scroll down for his comments. What do I think? I'm still listening. See also, "That Lawyer Dude's" Advice to GCs on Costs, Real Quality and Real Life.
Posted by JD Hull at April 17, 2006 04:47 PM
Comments
Dan:
One of the interesting things that I've seen in the various comments is that in virtually all cases, they are focused soley on the litigation side of the equation. That, however, is only a small portion of the legal requirements of our business. We do enormous amounts of transactional work, including trademarks, patents, etc., in which there is a high degree of cost certainty (or where there should be!). Despite this, firms are loathe to discuss alternative, fixed fee arrangements.
As I've said repeatedly, I know how hard it is to come up with a non-hourly fee arrangment for litigation, much less adhere to a litigation budget, as I've tried to do it myself. Now on the other side of the coin, however, I desperately want that kind of known quantity, despite its difficulty.
Posted by: James T. Holden at April 17, 2006 05:20 PM
I know I sound like a broken record, but--
How much more are your willing to pay in exchange for getting a fixed fee for any of these services?
I have asked this question before, sans response.
Do not misunderstand me. This is not an argument that you should pay more, etc. All that I am putting forth is that, for all its faults, h/m is the cheapest way to buy legal services, as shown by your unwillingness to pay more for a fixed fee.
If your idea is that a fixed fee with reduce your price, you have to understand that law firms who refuse to quote alternative fees are merely acting like car companies who refuse to cut their price, increase warranty, give free options, etc. Business is not a charity. Law firms have no duty or obligation to price their services as clients would have them. Doing such is merely a first step on the quick road to oblivion.
Least one think not, look at Delphi and all the other parts manufacturers who supply the auto industry or the legions of stories about suppliers to Wal-Marts, who have done the bidding of their "customers." Financial ruin has quickly followed.
Have you ever seen a corporation offer to bail out a law firm supplier that was in trouble?
Posted by: Moe Levine at April 18, 2006 05:28 AM