Alternative Fees for Litigation: Collaborating with Clients to Structure Non-Hourly Billing Arrangements

Because corporate law departments are under intense pressure to reduce outside legal fees, many businesses freeze hourly rates paid to outside counsel and seek alternative billing structures with outside firms. Companies want cost certainty and reduction of risk while continuing to receive quality representation.

Litigation partners must collaborate with corporate clients to determine appropriate alternative billing models based on the type of case involved. Both parties must have a financial stake in the results achieved.

Non-hourly rate pricing introduces risk for the law firm and requires tight management controls and carefully drafted fee agreements with clients. Litigators must also be mindful of the pitfalls associated with alternative fee arrangements.

Listen as our authoritative panel examines the different forms of alternative fee structures, offers guidance on the pros and cons of alternative fee arrangements, and discusses best practices for implementing alternative billing models.

1. Forms of alternative fee structures
   1. Value-based billing
   2. Holdback/success fees
   3. Portfolio pricing
   4. Fixed fees
   5. Flat fees
   6. Blended fees
   7. Contingency fees
   8. Retainers
2. Negotiating and implementing alternative fees
   1. Case and client assessment
   2. Client and firm collaboration
   3. Internal firm management controls
   4. Bidding strategies
   5. Marketing alternative fees
3. Ethical considerations

The panel will review these and other key issues:

• How can counsel structure the alternative fee agreement to suit the particular type of legal matter?
• How can the agreement be structured to minimize risk to the law firm, litigator and client?
• Which alternative fee agreements and provisions should law firms avoid or be wary of using?
• What legal ethics issues may arise with alternative fee agreements?