From time to time, we will have a guest on our blog.
This week, Erik M. Pelton with Erik M. Pelton & Associates, PLLC is our guest blogger.
One of the keys to a successful law practice of any size is communication. Not only communication with staff and colleagues but communication with clients.
Smaller law firms have the advantage of being more transparent and having less bureaucracy. Clients of smaller firms expect to receive more personal service, and rightly so. Here are some simple tips for maximizing the benefits of client communications:
Lawyers’ days are just as long as everyone else’s but the amount of work can be exponentially greater. Today’s clip offers some time management tips so that you can accomplish more in less time.
Fee suit exclusions seem to be the latest insurance ploy to cheat unsuspecting lawyers.
An engagement agreement is designed to be a "two way street." The lawyer promises to do certain things… address the needs (and wants?) of the client; represent the client to address the challenge being faced by the client, whether it be a lawsuit or a transactional issue. And, of course, the lawyer is representing that he/she is competent to do so.
The client, on the other hand, promises to tell the truth to the lawyer, provide information and documents relative to the matter when requested by the lawyer to do so … and to pay the fee as billed in accordance with their arrangement.
What are the consequences of failure to honor the respective promises? For the lawyer, it is a malpractice suit and/or a disciplinary proceeding. For the client, it’s withdrawal by the lawyer (unless on the eve of trial or otherwise would prejudice the client) or a lawsuit for payment of the fee.
BUT, some insurance carriers are lining up with clients, saying that if the lawyer sues for fees, and the client cross complains or counter sues for negligence or files a disciplinary complaint with the state bar, the carrier will not provide defense costs or pay any judgment against the lawyer. The effect of this is to deny the lawyer the ability to collect the fee when the client fails to pay. Why pay insurance premiums for something you will not receive? The $64 question.
Fee suit exclusions are a veiled attempt by insurance companies to raise premiums without notice to the lawyer. And, the lawyer generally isn’t even aware of this exclusion.
Both law schools and insurance companies conspire to keep lawyers ignorant of the business nature of their practice. In no other industry do creditors ignore their rights and fail to sue debtors for refusal to pay legitimate debts resulting from their purchases. Why should lawyers be placed in a different position? Why should clients be encouraged not to pay their lawyers’ fees?
The reality is, according to people I’ve spoken with in the industry, that there are few lawsuits filed by lawyers. (Perhaps it’s because lawyers have been scared away.) Further, the reality is that there are few counter suits for negligence. The further reality is that lawyers win most of these lawsuits; the figure I’ve been given is winning 9 out 10.
Seems that the lawyers face a big challenge: Failure of the law schools to teach business practices so lawyers can more effectively represent clients and efficiently deliver legal services; insurance carriers looking out for themselves, not their customers (lawyers); and bar associations believing their sole function is to protect the public, rather than a dual function of protecting the public AND helping their members (lawyers) to become better practitioners (including business skills).
Lawyers who survive in this environment should be commended.
Departures from large law firms continue. And more than one person is now asking what is the "normal" rate of departures? One estimate suggested 7%.
We are living in an environment that many people call a “new normal.” Our economy, as well as the legal community, has been turned upside down in the last couple of years. There is no ”typical” answer that has emerged yet. Departures are sometimes voluntary for better opportunities (or retirement) and sometimes involuntary where law firms are seeking to adjust their supply of lawyers with their clients’ demand.
As I mentioned in a recent interview in the New York Times, older lawyers are being asked to leave law firms when their productivity declines. That didn’t happen so frequently in the past. Generally, the age factor is only coincidental with the decrease in productivity. Though sometimes it is directly correlated because of a change in attitude by the experienced practitioner who wants to slow down and spend more time in other adventures. This tends to be a personal decision, not a trend. We have many lawyers in their 70s and 80s still active and capable contributors to their clients and the profession.
At the other end of the spectrum, newer lawyers who are not asked to become a partner in a firm believe their opportunities will be greater with another firm. They seek to make a lateral transfer from their existing firm to another one. The second law firm may accept them because they see a skilled practitioner, someone who received training at the expense of another law firm, who will fill a gap in their business model. This comes when they want to grow and enhance their capacity for clients or begin a new practice area to enhance their service offerings for existing clients. The nes lateral fits well under these circumstances.
Then, there are the new law school graduates who are finding the pipeline from education to practice being clogged up by the decrease in client demands and oversupply in some law firms. It will take several years for this phenomenon to adjust. Until then, I don’t think we can say there is a “typical” law firm departure rate.
On one evening of the year, we can be legitimately scared. But, don’t run your practice out of fear the rest of the year. Know the financial metrics for your success and how to achieve it by improving the condition of your clients.
From time to time, we will have a guest on our blog. This is something new for LawBiz Blog and we hope you find value in the expertise of those who will join us on occasion.
This week, Erik M. Pelton with Erik M. Pelton & Associates, PLLC is our guest blogger.
A steady stream of new clients and new business is critical to the success of any small law firm. Key marketing decisions such as to whom, about what, and in what manner will marketing be done should be well planned to be targeted, measured, and efficient. When developing a marketing plan, it is key to consider and include the following factors:
What can law firms do to interact with their clients more effectively? In today’s clip, Ed will share a few ideas, such as developing a checklist of questions and creating surveys that will address this issue.
Minnesota has many who express their opinions. This is the home of the "great walkout." After the last great bru-ha-ha, recall votes were taken … and now the legislature is more evenly balanced .. Surprise! The legislators are actually doing what their supposed to … legislating and compromising to meet the issues of importance to the people
This protester was seeking to complain to Pres. Obama. A hunger strike for 68 days .. could have fooled me. He didn’t look too hungry. He must have been HUGE when he started his strike.
From time to time, we will have a guest on our blog. This is something new for LawBiz Blog and we hope you find value in the expertise of those who will join us on occasion.
This week, Erik M. Pelton with Erik M. Pelton & Associates, PLLC is our guest blogger.
Creating and managing a successful solo or small firm is no easy task. But given the tools available today, it is easier than ever. And more and more clients today appreciate and even seek the personal relationships provided by boutique firms. Here are ten keys areas which every small or solo firm can master to propel it to greater success, growth and profit.
