Blame it on this nearly week-long flu virus of mine, if you must. While the blawg world is abuzz with discussion of Sunday’s Boston Globe article “Beat the clock: A Boston law firm says no to billing by the hour, and its clients say they are pleased” (October 8, 2007), I’d really rather be thinking about pumpkin haiku than hourly billing. (In truth, a nice long nap or two would be my preferred activity this afternoon).
pumpkin patch –
this one is big enough
for my son………………… by Yu Chang, from Upstate Dim Sum (2005/1)
The Globe article focused on the Shepherd Law Group, as did a swarm of posting that is collected by Jay Shepherd himself at his Gruntled Employees weblog (via LegalBlog Watch; ABA Journal news). Jay says “Our up-front pricing places our interests squarely aligned with our clients’ interests, which makes them happy and forces us to be more efficient.” And the “Amen, Hourly Billing is the Devil’s Spawn” chorus is at it again. Thankfully, Carolyn Elefant again tries to focus on the most important issue: What do clients want and how do we best serve their interests? After noting that even value-billing guru Ron Baker stresses that “It’s up to law firms, not their customers, to make this change. It simply won’t happen any other way,” Carolyn asks:
“If value billing benefits clients, then why do we lawyers need to sell them on it? Have clients become so entrenched in the billable-hour concept that they don’t realize that there’s a better way? Or is value billing another way for firms to charge more for the kind of value that as lawyers we’re obligated to provide anyway?”
I’m going to Plead the Fifth (day with the flu), and refuse to deal at length with this topic at this point in time. [For some depth, and lots of links, on the issue of hourly billing — and the ethics and practicalities of alternatives (and even what makes Ron Baker tick) — see my August 18th post on broadening the hourly billing debate.] Instead, I will point out a few important ideas for the law firm or law client to keep in mind, when thinking about the pros and cons of hourly billing and alternatives such as flat fee or value billing:
- Billing by the hour does raise the issue of law firms doing too much (being inefficient) because they earn more by doing more, but pricing in advance through a flat fee inherently creates the potential of doing too little for the client, since more effort won’t earn more money and less effort won’t (immediately, at least) reduce the size of a bill.
- A too-busy lawyer or law firm (and the best almost always are too busy) has no particular incentive to do unnecessary work for a client when billing by the hour; but, a too busy lawyer has plenty of incentive to do less for a client when a fee is fixed in advance.
- When an hourly-billing lawyer does extra (“too much” or perhaps “unnecessary”) work for a client, the result is often a better-written pleading or contract, or a better understanding of precedent; when a flat-fee-billing lawyer does “too little” (cutting corners or eliminating tasks), the result is very likely to be lower quality work product and possible injury to the client’s interests.
- As always, it is important to distinguish condemnation of high billable hour quotas for each attorney, which are set by law firms, and which raise many ethical red flags, from billing by the hour, which is not inherently unethical. And,
- What might be good or fair for savvy clients, who have lots of experience with lawyers and legal problems and offer the potential for significant repeat business, may not be automatically fair for clients who have little relevant experience and, therefore, may have no real idea how much work is required, what a reasonable fee would be, how difficult or unusual their situation is, nor how qualified a law firm is to handle the matter. In many situations, they also won’t be better able to judge the quality or value of the services even when they are completed.
a giggling coven–
stunted pumpkins
left in the patch
………………………………… paul m. (3rd place, Shiki Kukai, Nov. 1997)
Before jumping with both feet on the Flat Fee (or Flat Earth) Bandwagon, clients and lawyers need to remember the roots of the practice of hourly billing — which grew out of discontent with a system largely built upon flat fees and “eyeballed” billing [see, e.g., The Hours, Niki Kuckes, Legal Affairs, Sept-Oct. 2002]. Also, remember that most lawyers will construct a flat fee by estimating how many hours of attorney time a client or a project is likely to require — and making sure the law firm is not being shortchanged by the guestimate. (Thus, Jay Shepard says “his fees for unlimited legal advice range from $1,000 to $30,000 a year, depending on a client’s legal needs.”) It comes down to trust between the client and the lawyer — and, most clients will want to be able to “trust but verify.” How will you verify that you are getting your money’s worth?
One tip: If a flat-fee or value-billing lawyer, who wants to be hired by you, is only telling you the good things about alternatives to hourly billing, and only the bad things about paying by the hour, you should think long and hard about whether you are dealing with a trustworthy lawyer who puts your interests first. If he or she won’t give you an estimate of how much actual lawyer time will be put into your matter, run.
One more tip: If you want to see more pumpkin haiku, click here.


afterthought (10 PM, Oct. 10): I’ve often thought that the Amen Chorus Against the Billable Hour is a great example of a few people with a financial incentive artfully stoking an inbred dislike for a particular topic or phenomenon into a wrongheaded Any-Change-Must-Be-Good movement. That notion kept poking its way into my psyche the past two days, after seeing John Tierney’s Findings article yesterday, in the New York Times, “Diet and Fat: A Severe Case of Mistaken Consensus” (New York Times, October 9, 2007). Tierney raises the important concept of the Informational or Reputational Cascade, and just how easily “large groups of people can reach a ‘consensus’ without most of them really understanding the issue: Once a critical mass of people starts a trend, the rest make the rational decision to go along because they figure the trend-setters can’t all be wrong.” The primary culprit is turning acceptance of a notion into a binary choice — for it or against it — with no room for nuanced partial acceptance.
See his follow-up Tierney Lab weblog posts on the Low-Fat Diet Cascade (Oct. 9, 2007); and on Schopenhauer on Cascades (Oct. 10, 2007). And, for more information, go to Informational Cascades and Rational Herding: An Annotated Bibliography and Resource Reference (by Sushil Bikhchandani, David Hirshleifer, Ivo Welch, who wrote the seminal paper on informational cascades).
The economics, ethics and practicalities of billing for lawyer services should never be seen as yes-or-no propositions. Far too much depends on the factual circumstances and on the traits of the people involved (lawyer and client). By constantly attacking and deriding anyone who points out that there are pros and cons to every billing method, those with a stake in killing the billable hour are trying to create a forced binary choice — one that is likely to hurt those with the least power in the marketplace for legal services: the unsophisticated (or un-wealthy) client and the inexperienced and easily-replaced young attorney.
pumpkins rumble
in a passing pick-up…
october sunset
……………
pumpkin field
i look back on the face
of a summer love
………………………… .by ed markowski


One tip: If a flat-fee or value-billing lawyer, who wants to be hired by you, is only telling you the good things about alternatives to hourly billing, and only the bad things about paying by the hour, you should think long and hard about whether you are dealing with a trustworthy lawyer who puts your interests first. If he or she won’t give you an estimate of how much actual lawyer time will be put into your matter, run.
See his follow-up
This Wednesday (October 10, 2007), the eyes of America’s “sex offender stakeholder community” will be turned to the Ohio Supreme Court, when it hears oral argument in the case of Francis Hyle, Green Township Law Director, et al. v. Gerry R. Porter, Jr. (Case No. 2006-2187, 
We believe that the courts that have ruled against retroactivity have the better argument. And, Porter has received support from a broad array of friends of the court. The 
And, we hear from Cor van den Heuvel, co-editor of
Nameless and Unheard: Ever since 

Earlier this week, at Legal Blog Watch, Carolyn Elefant asked “
The most maddening and sad intellectual weakness I have seen in two years spent within the blogosphere has been the inability of so many young lawyers and law students to know when distinctions make a difference, and whether analogies are weak or strong. Thus, Adam Cohen’s op/ed piece in today’s NYT should be required reading for all educators and all who wish to fulfill the role of lawyer, pundit, politician or citizen competently.
I’m afraid that every law student and graduate has faced the situation humorously
A couple years ago, I ran across two thought-provoking law review articles with very different perspectives on legal thinking. The first is “
The second article was written in response to Jim Elkins’s; it is “
Do we need more and better “thinking like a lawyer” within the legal profession and at our law schools? If the term is understood the way Peter Teachout describes it, we surely do. [find more excerpts from the Teachout article below the fold, by clicking on the
[cover detail]
from 
[
…..
The non-profit, nonpartisan
Sen. Obama stated that “Antitrust is the American way to make capitalism work for consumers. Unlike some forms of government regulation, it ensures that firms can reap the rewards of doing a better job. Most fundamentally, it insists that customers—not government bureaucrats, and not monopoly CEOs—are the judges of what best serves their needs.” After noting that America has been a longtime leader in antitrust,” with more than a century of “broad bipartisan support for vigorous antitrust enforcement, to protect competition and to foster innovation and economic growth,” the Senator charged that “Regrettably, the current administration has what may be the weakest record of antitrust enforcement of any administration in the last half century.”
update (Sept. 27, 2007): Nobody in the blawgisphere covers spanking by the bench and bar like David Lat at 
Is the Ex-Spanker-Ex-Priest Fit to be a Lawyer? Way back in 2004, ethicalEsq spent some time wondering about the possible effects of
Another case handled the same day by the Iowa Supreme Court was a lot easier.
A Movie, Not Just a Joke: “A Lawyer Walks Into a Bar . . . “ I haven’t yet seen the documentary “
Writer-director Eric Chaikin’s feature-length documentary A Lawyer Walks Into A Bar. . . offers a witty, seriocomic look at myriad aspects of the American legal process and judicial system. It hones in on six individuals, all prospective attorneys at the time of the film’s production, and follows them through trials and travails as they approach and take the formidable bar. Chaikin then uses the subjects’ stories as springboards to broader digressions on U.S. litigation. The film features a myriad of celebrity guest appearances, from both well-respected attorneys and entertainers. Participants include: attorneys Alan Dershowitz, Mark Lanier and Joe Jamail; comics Eddie Griffin and Michael Ian Black; TV commentators John Stossel and Nancy Grace, and many others.
Like atheists in fox holes, a lot of rather non-religious law students seem to turn to the heavens for assistance when taking the bar exam. Although I’m not a believer in divine intervention (for baseball batters, Emmy nominees, or test takers), I tried to help the prayer-inclined back in 2005, with my post “
Speaking of Spanking (and silly geese, but not bar admissions): Yesterday’s
I have no legal insights into Marsinko’s case or the policy issues. Nonetheless, I’ve been rather goose-silly lately over at the 
When you go around doing a lot of assuming, your mental baggage will sometimes impede the journey down the road toward enlightenment. So, even opinionated pundits (and crusty curmudgeons) need to travel with eyes and mind open. Fueled with copious amounts of caffeine, my eyes were sufficiently open this Monday morning to discover an important truth: despite assumptions and experience that might suggest otherwise, not every theme-oriented edition of
Exhibit A is “
If you want to renew your respect for the jury system, or just learn about a commemorative stamp that is neither too cloying nor too obscure to use on your holiday mailings this year, see Eric Turkewitz’s post about the new
Here are Deliberations top rules on jury selection. At Blawg Review #127, each of them is accompanied by a pointer to a worthwhile recent weblawg posting. Here, some of them are accompanied by a haiku or senryu by recovering (perhaps soon relapsing) lawyer, 

Many thanks to Anne Reed for including 

The international civil rights sentinel,
“Laws aimed at people convicted of sex offenses may not protect children from sex crimes but do lead to harassment, ostracism and even violence against former offenders, Human Rights Watch said in a report released today. Human Rights Watch urges the reform of state and federal registration and community notification laws, and the elimination of residency restrictions, because they violate basic rights of former offenders.”
Some lawmakers admit to another purpose for residency restriction laws. Georgia State House Majority Leader Jerry Keen, who sponsored the state’s law banning registrants from living within 1,000 feet of places where children gather, stated during a floor debate, “My intent personally is to make [residency restrictions] so onerous on those that are convicted of [sex] offenses … they will want to move to another state.”5 Yet people who have committed sex offenses must live somewhere. For those who do pose a threat to public safety, they should be able to reside in communities where they can receive the supervision and treatment they need, rather than be forced to move to isolated rural areas or become homeless.
Value Billing is Not Always a Great Value: On April 21, 2005, in our posts
Baker’s parting wisdom: “change orders have ‘value pricing’ written all over them and should be priced accordingly.”

– lawn sign in Mt. Upton, Chenango County, NY [
In addition, here in the New York Capital Region, the Albany Times Union published a major original piece of journalism about sex offender residency laws today: “
The newest edition of the bi-monthly online magazine
“In the face of this unrelenting challenge to change, how are law schools responding? In this edition of TCL we hear from law school deans and professors from across the country, from large law schools and small, who share their insights, experience, and hope on the critical topic: What can law schools do better?”
You’ll also find a
A federal district court ruled today that Ohio’s sex offender residency law could not be applied to Lane Mikaloff of Akron, a rapist whose crime occurred two decades before the law was passed in 2003. See
Selections from 