"WE WILL WORK ON FIXED FEE ARRANGEMENTS SO THAT CLIENTS CAN BUDGET "

OUR CHARGES

“Microsoft, the software giant, has told law firms across the globe that they must trim fees and scrap hourly-rate billing if they want to continue working for the company. In a letter from Microsoft HQ in Washington, seen by the Gazette this week, Brad Smith, senior vice president and general counsel, outlined the launch of a plan designed to slash Microsoft’s legal spend over the next 12 months”. Source - The Law Society Gazette, 24 July 2008.

Why our charges are lower

We charge less as we are not based on the typical City firm pyramid structure. Although our overheads are lower, quality is never compromised. It is always the individual lawyer who matters, not lavish offices or huge teams of support staff.

Typically we charge less than half the rates of our opponents or competitors. We don’t charge for every minute spent on a matter. We will work on fixed fee arrangements so that clients can budget. We use experienced lawyers and counsel. Clients speak at once to a lawyer with a solution to their problem. Our charges and personalised approach result in very good value for money and high quality service. We seek practical, commercially aware solutions for the economic and commercial pressures faced by our clients.

“Conditional Fee Agreements”

Unlike larger firms we work more on Conditional Fee Agreements (“CFAs”) in contentious matters. If we cannot work on a full CFA we can consider a “discounted CFA” where we get paid a percentage of our basic charges by you if you don’t win. If you win in any CFA all of our basic charges and a success fee can be recovered from your opponent. In this way your opponent can expect to pay double if you win.

We are regulated in all of this area by the Courts and the Solicitors Regulation Authority. We operate a Complaints Policy based on the Lexcel Standard.

So, why is Microsoft so concerned about charges?

Other firms may charge between £700 (partner) and £200 (trainee) per hour. Fee-earners bill up to 1400 hours per annum, i.e., fees from £1m to £280,000 per head. The least experienced fee-earner might be paid as little as £40,000 p.a. but bill fees up to 5 times that salary.

Typical hourly rates are said to comprise in equal parts:-

(i) the fee-earner’s actual salary,

(ii) the overhead of support and facilities and

(iii) the profit which the firm makes on each hour.

Other firms have a pyramid structure with descending layers of (a) partners, (b) associates (c) assistants and (d) trainees. Partners take care of all mattes and usually work in teams. To maintain the core knowledge of a matter more fee-earners may work on a case. If counsel is instructed to attend court a firm may send several fee-earners to simply sit with counsel - pointless duplication. When work slackens rates may have to rise to maintain profits. To “reach partner level” the lower layers must bill more. Clients may like the “brand” of a large firm but paying more does not necessarily result in better service or value for money.

Partners of larger firms can make profits of over £1m p.a., all of which is paid for by their clients.