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Anyone thinking about hiring a lawyer (or buying any other kind of
professional service) needs to keep in mind these fundamental principles of the
real world:
- Good. Fast. Cheap. At best, you can have two of those. You can
almost never have all three. If the work is good and fast, it probably
won't be cheap. If it's good and cheap, it probably won't be fast. If it's
fast and cheap, it probably won't be good. You're the client: tell
the lawyer which two are most important to you. If you don't, the lawyer
will have to decide for you.
- Sometimes, rule #1 does not apply. That is, sometimes you can't have the
work be either fast or cheap. Some matters are just too complicated,
high-stakes, or unusual. Some adversaries are just too nasty or
unreasonable. Some judges are just too cranky, unreasonable, or obtuse.
Sometimes your position is just dead wrong on the law or the facts.
Sometimes all of the above.
- Sometimes, neither rule #1 nor rule #2 applies. You could be lucky and
get something for nothing. You could also win the Mega-Millions lottery. I
wouldn't count on it, though.
Like most lawyers, I usually bill for my work on an
hourly-rate basis. I am, however, receptive to alternative billing arrangements
in particular matters, so long as they make economic sense for me, my client,
and the matter.
When billing on an hourly-rate basis, I usually follow these
practices:
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My initial
hourly rate for a matter is guaranteed to remain the same for at least one
year. (As a practical matter, I do not recall ever having raised my hourly
rate for a matter during the pendency of that matter. So far, my few rate
increases over the years have applied to new matters only.)
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I never
raise my hourly rate without giving at least a month's advance notice.
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My bills
provide detailed descriptions of what was done, when it was done, who did
it, how long it took, and what it cost.
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All outside
services are billed at their actual cost. Part of what my clients get when
they hire me is access to my outside suppliers and vendors at cost. I never
add any mark-up or profit margin to any disbursement.
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I do not
bill for routine disbursements, more appropriately regarded as overhead (e.g.,
routine photocopying, ordinary postage, faxes, telephone, routine office
supplies).
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I do
bill for extraordinary or significant disbursements, directly attributable
to specific matters (e.g., outside copying, travel, overnight
delivery, court costs).
-
For
WestLaw, I have access to my most-used databases for a flat monthly fee. I
therefore bill only for those additional WestLaw charges not included in my
WestLaw plan and directly attributable to a specific matter.
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All air
travel is billed at the coach rate, unless no coach seating was available
when travel arrangements were made. If I buy a first-class or business-class
ticket for any other reason, I am responsible for the difference. I apply
the same general approach to hotel and rental car reservations: even if I
make "deluxe" arrangements for some reason, I bill only for standard
arrangements.
If a client prefers, the following alternatives are also
available, for either a particular client or a particular matter:
-
No billing
for any disbursement, but client pays a higher-than-standard hourly rate.
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Client
receives a monthly allowance for disbursements and there is no billing for
any disbursement within that monthly allowance, but client pays a
higher-than-standard hourly rate. Client reimburses disbursements in excess
of the monthly allowance.
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