LAW OFFICE ECONOMICS,
MANAGEMENT, AND FEES[1]

 

2006 Update by:

Brenton G. Burry, Esq.

Lisa M. Yurwit

Baltimore, Maryland

 

 

Revisions/Supplements by:
Heather J. Crenshaw, Esq.

Robert S. McNeill, J.D.

 

Original Text by
Laurence S. Graham, Esq.
Greenville, North Carolina

 

Table of Contents

I.     SCOPE OF BOOK ............................................................ 7

II.    THE CLIENT ...................................................................... 8

A.    Getting and Keeping Clients Satisfied — Marketing ............. 8

B.    Meeting the Client ................................................................ 10

C.    Interview Sheet .................................................................... 11

D.    Interruptions During the Interview ....................................... 12

E.    The Client’s Goal ................................................................. 12

F.    No Guarantees .................................................................... 12

G.    Discussion of Fee ............................................................... 12

H.    Following Up on Initial Client Contact .................................. 13

I.      When, How, and Whether to Say “No” ............................... 14

J.     Keeping the Client Advised ................................................. 16

III.   OFFICE EFFICIENCY .................................................... 18

A.    Office Operations — Basic Employment Issues ............... 18

B.    Office Operations — Staff .................................................. 19

C.    Office Operations — Office Meetings ................................. 20

D.    Office Operations — “Things To Do” ................................. 20

E.    Office Manual ...................................................................... 21


F.    Filing and Indexing ............................................................... 23

1.    Organizing the file ........................................................ 23

2.    Filing and indexing ....................................................... 24

G.    Forms File ........................................................................... 26

1.    The “key word” index ................................................... 27

2.    Note card index ............................................................ 27

3.    The forms .................................................................... 27

H.    Informational Intake and Assimilation .................................. 28

I.      Systems .............................................................................. 29

J.     Selecting the Proper Form .................................................. 30

1.    Your own form file ........................................................ 30

2.    World’s largest form file ............................................... 31

K.    Risk Management — Docket and Date Control ................. 31

1.    Tickler cards ................................................................ 32

2.    Personal information managers .................................. 32

3.    Diary letters .................................................................. 32

4.    Calendars .................................................................... 32

5.    Law practice management systems ........................... 33

L.    Client Informational Copies ................................................. 33

M.    Intra-Office Communications .............................................. 34

N.    Establishing Priorities ......................................................... 35

IV.   DELIVERING A QUALITY PRODUCT ........................ 36

A.    Cosmetic Appearance ........................................................ 36

B.    The “End Product” .............................................................. 37

C.    The Opinion Letter .............................................................. 38

V.    ESTABLISHING THE “AFFORDABLE PRICE” ...... 39

A.    The “Why” of Timekeeping ................................................. 39

1.    Setting a fee ................................................................. 39

2.    Establishing an in-house fee schedule for
routine or frequently-performed work .......................... 39

3.    Analysis of bill for client ................................................ 39

4.    Risk management ....................................................... 39

5.    Law firm management ................................................. 40

B.    The “How” of Timekeeping .................................................. 40

C.    Fee Setting .......................................................................... 41

1.    Contingent fee .............................................................. 42

2.    Fixed fee ...................................................................... 42

3.    The hourly rate ............................................................. 43

D.    Bill Rendering and Follow Up .............................................. 44


VI.   USE OF TECHNOLOGY ................................................ 48

VII. PROFESSIONAL RESPONSIBILITY .......................... 55

A.    IOLTA Accounts .................................................................. 56

B.    Lobbyists ............................................................................. 57

C.    Pro Bono Activities .............................................................. 58

D.    Maryland State Bar Association Code of Civility ................. 58

VIII. PRACTICAL TIPS ........................................................... 58

A.    Envelopes ........................................................................... 58

B.    Paper Shredders ................................................................. 59

C.    Express Mail Service, Facsimile, E-mail,
and E-mail Attachments ..................................................... 60

D.    Toll-Free Numbers .............................................................. 61

E.    Maryland Manual and Maryland Lawyers’ Manual ............... 61

F.    Additional Materials ............................................................. 61

IX.   THE LAWYER ................................................................. 61

X.    BIBLIOGRAPHY ............................................................. 63

XI.   FORMS ............................................................................. 63

Form 1.    Client Interview Sheet ................................................ 64

Form 2.    Confirmation of Legal Representation
Letter to Client ........................................................... 65

Form 3.    Simple Hourly Rate: Single Rate ............................... 67

Form 4.    Hourly Rate–Letter Format: Mixed Rates .................. 69

Form 5.    Discounted Hourly Rate: Mixed Rates ...................... 71

Form 6.    Flat Rate .................................................................... 73

Form 7.    Contingent-Fee Agreement ....................................... 75

Form 8.    Contingent-Fee Contract ........................................... 77

Form 9.    Non-Engagement Letter ............................................ 79

Form 10. Declination Letter ....................................................... 80

Form 11. Sample Index Note Card ........................................... 81

Form 12. Sample Daily Time Log ............................................. 82

Form 13.  Individual Client’s Time/Ledger Sheet ....................... 83

Form 14. Client’s Expense Ledger ........................................... 84

Form 15. Sample Itemized Billing Statement A ........................ 85

Form 16.  Sample Itemized Billing Statement B ........................ 86

Form 17. Sample Itemized Billing Statement C ........................ 87

Form 18.  Sample Itemized Billing Statement D ........................ 88

Form 19. Sample Office Memorandum .................................... 89

Form 20. Courthouse Checklist ................................................ 90

Form 21.  Opinion Letter ............................................................ 91


XII. APPENDIX ........................................................................ 93

A.    Improving Your Practice with Case Management .............. 93

B.    Law Firm Backup Plan Best Practices ............................... 97

C.    Personal Digital Assistants for Lawyers —
Eliminating the Information Archipelago ............................ 101

D.    Maryland State Bar Association Code of Civility ............... 106

E.    Selected Rules of the Maryland Lawyers’ Rules of
Professional Conduct ....................................................... 109

F.    Selected Provisions of Maryland Rules ............................ 138



[1]Reproduced (with appropriate changes for Maryland) from Practical Skills Course Manual 1987, with permission of the author and the North Carolina Bar Foundation. Copyright© 1990 by the North Carolina Bar Association Foundation, Inc.