New Report Says Alternative Fee Model Has Not Caught On
A report from ALM Legal Intelligence, “Speaking Different Languages: Alternative Fee Arrangements for Law Firms and Legal Departments”, shows that the billable hour model is still strong inspite of the slow economy.
Even with all the talk of moving towards alternative fee models, the survey finds that only six percent of law firm respondents relied on such arrangements for over half of their legal work last year. When it came to in-house departments giving work to outside counsel, the figure was slightly higher - at 12 percent.
The survey also shows that while blended rates and capped fees are becoming popular, 93 percent of law firm respondents and 89 percent of law department respondents preferred flat fee agreements as their main choice of alternative fee arrangement.
The survey had 194 respondents from Am Law 100 and NLJ 250 law firms and 141 respondents from legal departments.