The legal services market, fee agreements between solicitors and their clients, and getting it right!
To protect their interests many clients decide to be represented by solicitors in relation to transactions and disputes. Their counterparties, or opponents, are probably represented and naturally enough a client wants, at the very least, a level playing field. But in relation to the first step that a client must take – agreeing the terms of his solicitor’s retainer – the playing field may be far from level.
Like all markets it takes time to understand them, the different pricing structures, and the boundaries. The market for legal services is no different. A litigation solicitor will be aware of his firm’s time charges and those of other firms, and some (probably most) litigation solicitors will be aware of different fee arrangements, eg fixed fees and the various types of contingency fees. But solicitors are in business – they are unlikely to suggest to a prospective client, that other firms may be prepared to offer more attractive terms. For example, a firm with a preference for time charges is unlikely to point out that another firm might act on a contingency basis.
On the assumption that the quality of advice and the level of service available from a number of firms is similar, what should a client do who wants to understand the market and to agree terms that are fair to him as well as the solicitor? How should he go about selecting the right solicitor?
Two things come to mind. He can instruct a solicitor who knows the market to help him make his selection, agree a suitable retainer, and perhaps even monitor the appointed solicitor’s performance and billing. As most cases wouldn’t justify this approach, the other thing he could do would be to identify a small number of firms as best he can and go and talk to them. If there is a prospect of a promising case, most solicitors will be prepared to take part in an informal beauty parade, which is a fairly common practice for solicitors and their clients when selecting a barrister. Hopefully, from this process, the client may obtain the information he needs to make an informed decision about who to instruct as his solicitor, and the most suitable terms of engagement.
If you’d like to discuss anything arising out of this blog, including different types of fee arrangements, don’t hesitate to contact us: 020 7832 6410 or info@dewarhogan.co.uk