Define Success | Share Risk | Cost Predictability

At Brown Law LLC, both cost and result risk can be shared between attorney and client as an integral part of a litigation management approach.

If defined success is not delivered, the fee structure arrangements discussed below take that shortcoming into account, providing for a reduction in the total legal fee that would otherwise be paid. Should Brown Law LLC stray from budget, a financial penalty could be incurred.

Confidence in the ability to shape and execute a litigation management plan (LMP) that will deliver defined success can be reflected in a law firm’s willingness to accept engagements on a fee basis other than a standard hourly rate. Brown Law LLC believes clients should be afforded the freedom and flexibility to consider fee structures on a case-by-case basis to better meet their objectives while bringing counsel into full alignment with their goals.

Shared risk reflects confidence on the part of the lawyer and creates confidence in the client that their goals are fully aligned with that of counsel in achieving a cost effective result.

Brown Law LLC will record and report hours, but has transformed some of the core operative principles of the prevailing industry hourly rate structure as explained in options A and B listed below.

Upon completion of an early case assessment and submission of a LMP, the client and Brown Law LLC can discuss a range of fee options. Although Brown Law LLC handles matters on a fixed fee, contingent fee, and standard hourly rate basis, options A and B below reflect a middle ground that combines important elements of both cost control and predictability as well as a sharing of risk and success.

Option A

Flexible Fixed Fee Basis:

• At the time a litigation management plan [LMP] is delivered, Brown Law LLC and client will reach agreement on a fixed fee for the matter subject to the provisions in line items 2-5 outlined below, which provide for flexibility and adjustment.
• Attorney and paralegal time will be recorded throughout the period a case is open. Based on mutually agreed to hourly rates, if the total time value at time of final case disposition is less than 90% of the fixed fee, the difference between the time value and 90% of the fixed fee will be refunded to the client.
• If the total time value exceeds the fixed fee, any time value in excess of the fixed fee, up to 120% of that amount will not be billed to client by Brown Law LLC. The client has no financial obligation for time value between 100-120% of the agreed to fixed fee.
• For any time value incurred by Brown Law LLC over 120% of the fixed fee, the client will be billed at an agreed upon discounted hourly rate to be set at the time a LMP is delivered and the fixed fee is established.
• If Brown Law LLC achieves defined success as established by an agreement with client when the LMP is delivered, a success fee will be earned at the final conclusion of the matter.
• Defined success, as agreed to with client when the LMP is delivered, could include: achieving a resolution target, meeting budgetary expectations and avoiding certain costs, time of disposition or other possible factors determined by client.
• The success fee agreed to with client when the LMP is delivered, could include a fixed dollar amount or a percentage multiple over the fixed fee.
• Any time incurred by Brown Law LLC prior to submission of the LMP to client will be billed on a standard hourly rate basis at a discount of 25% from its customary rate.
• Timing for payment of fixed fee will be agreed to at the time the LMP is delivered.

Option B

Discounted Hourly Rate Basis With Success Fee:

• Brown Law LLC will record attorney and paralegal time throughout the period a case is open. Depending on the nature and complexity of the case, Brown will bill at agreed upon intervals for such time value at a 20-30% discount from its customary hourly rate. The amount of said discount will be mutually agreed upon when the LMP is delivered.
• If Brown Law LLC achieves defined success to be established by agreement with client when the LMP is delivered, a success fee will be earned at the final conclusion of the matter.
• Defined success, agreed to with client when the LMP is delivered, could include: achieving a resolution target, meeting budgetary expectations and avoiding certain costs, time of disposition or other possible factors determined by client.
• The success fee, agreed to with client when the LMP is delivered, could include a fixed dollar amount or a percentage multiple over the discounted hourly fees paid by client.
• Any time incurred by Brown Law LLC prior to submission of the LMP to client will be billed on a standard hourly rate basis at a discount of 25% from its customary rate.

With respect to the alternate fee arrangement structures outlined above, any success fee and overall fee structure must be in accordance with any ethical, statutory, or regulatory requirements of the applicable jurisdiction. Legal fees described above do not include court costs and litigation expenses.

The hourly measure, too ingrained to die as some commentators have suggested, might be in need of the hard tweak Brown Law LLC has suggested above.

If clients want adherence to budgets, they may need to structure the right incentives. The focus should be on achieving results, not recording time and the potential corollary incentive to prolong litigation.