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Johannesburg - After some hard-hitting criticism of the legal profession and a few of its practices on Fin24, a lawyer* has contacted us with the following tips for small business owners and individuals to protect their wallets:
Attorneys are often confronted with issues that are far from unique. You would be surprised, but many a legal issue is resolved through skilful Google searches. This is particularly the case when your query has an international dimension.
Do yourself a favour and spend a little time on the internet researching the issue. At worst you can throw in the towel none the wiser; at best you may solve or gain a better understanding of your problem and/or its context.
Granted, attorneys understand the discourse and you may feel like some of the information you have found is out of your depth. If possible, educate yourself before consulting an attorney and remember that a problem clearly explained will cost you less than one that first requires identification and then solving.
Attorneys have earned a reputation for being tough and ruthless – something that inspires a degree of fear or admiration on the part of the ordinary person.
To a large extent, the knowledge attorneys possess is neither difficult to understand nor inaccessible to the lay person. View attorneys as you would any other service provider who possesses skills and knowledge you don't (think plumber, electrician, IT specialist, and so on).
Most attorneys are simply ordinary people struggling to cope with the pressure of a monthly budget demanding up to 140 billable hours a month. The incentive to provide reasonable fees accordingly diminishes as job security is threatened, to the extent that budgets are consistently not met.
To a certain extent, senior attorneys are often technically weak when compared to their younger counterparts, as many have resisted technological advances and have not adapted with the fast pace of the modern environment.
In large firms, seniority is one of the main inputs that determine an hourly rate; expertise and skill are lesser criteria. Try to establish whether your attorney can talk the talk and walk the walk, not simply the former. Where possible, in larger firms opt for junior attorneys as they are cheaper and probably just as qualified to assist in the vast majority of cases (and if not, there is always a senior partner to bounce ideas off).
Attorneys sell time. The incentive is therefore not to work particularly quickly or efficiently. For attorneys, the simplicity of a practical solution may be undesirable because this would compromise the ability to charge high fees. Instead, the driving force behind most attorneys' decisions is the profit-maximising motive. Prolonged negotiations, discussions and meetings simply make more money.
Of course, if attorneys took this to the extreme no one would use ABC Inc because of the firm's gross inefficiency. Attorneys therefore have the difficult job of balancing the apearance of efficiency without actually being so.
The information asymmetry means laypersons are often not in a position to judge what is or is not a reasonable fee. Attorneys thrive on their clients' ignorance, particularly in the case of individuals. Don't be afraid to ask questions about how a quote or fees are reached
Although usually reserved for big corporates, individuals should get the attorney to commit to a fee ceiling which cannot be exceeded without the client's prior written consent. Attorneys' hourly rates are exorbitant, despite protestations that they are market-related.
Ironically, most junior attorneys at large firms would not be able to afford their own services. Do not be shy in trying to "squeeze" an attorney's hourly rate down. Feel free to shop around before instructing an attorney, or tell him or her that a competitor has offered a lower hourly rate.
The more urgent and desperate the client, the less likely they will be to question fees upfront. Try and avoid this type of situation where possible.
Most importantly, never feel like the attorney is doing you a favour by assisting you with your problem – it's their job and they are often overpaid. Directors at bigger law firms earn more than R100 000 per month (excluding annual bonuses), so don't feel bad for being that finicky, annoying client – you're paying for it.
One of the best-kept secrets in the legal world is that attorneys often have little input in relation to the end product, particularly when the matter is not unique or complex. Most of the work is often done by candidate attorneys or CAs (formerly article clerks), who are attorneys-in-training.
The attorney's role is often limited to a supervisory one, but that fact is hardly ever disclosed to the client. Budget pressure often results in attorneys converting CAs' time into their own and then charging at their hourly rate.
In real terms, this means that your attorney is in all probability not the one who drafted the contract or the legal pleadings. At larger firms, CAs charge between R800 and R1 000 an hour from their first day of employment.
So the trick is to highlight your price sensitive nature and your understanding of the profession when you instruct your attorney, and that you would like the majority of work to be done by the CA. The attorney can then supervise or review the work at his or her rate. This will definitely save you a lot of money.
In litigious matters, insist that all filing and serving be done by messengers (if it is a medium- to large-sized firm) because the simple delivery of a letter can cost you R1 000 if done by a CA.
Although it is often unavoidable, try not to instruct attorneys on an urgent basis. Although it is not permitted, attorneys have been known to add a couple extra hours to their bill as a form of penalty for making them work unusually hard, late or on an urgent basis.
As a general rule, the bigger the firm, the less important the individual client. Corporate clients take precedence every time over the individuals and attorneys will prioritise their workload accordingly. Also, individuals tend to be more ignorant and more conducive to exploitation.
Finally, do not feel shy to question the bill when it arrives. Even better, request detailed itemised billing upfront.
The vaguer the bill, the more likely that the attorney has manufactured a couple of hours here and there.
Many attorneys use the description "professional services rendered" on their invoices. Advise your attorney that as a condition of his/her mandate, the bill needs to be appropriately detailed in order for it to be paid.
- Fin24
* Fin24 has this lawyer's contact details.
- Research
Attorneys are often confronted with issues that are far from unique. You would be surprised, but many a legal issue is resolved through skilful Google searches. This is particularly the case when your query has an international dimension.
Do yourself a favour and spend a little time on the internet researching the issue. At worst you can throw in the towel none the wiser; at best you may solve or gain a better understanding of your problem and/or its context.
Granted, attorneys understand the discourse and you may feel like some of the information you have found is out of your depth. If possible, educate yourself before consulting an attorney and remember that a problem clearly explained will cost you less than one that first requires identification and then solving.
- Don't be intimidated
Attorneys have earned a reputation for being tough and ruthless – something that inspires a degree of fear or admiration on the part of the ordinary person.
To a large extent, the knowledge attorneys possess is neither difficult to understand nor inaccessible to the lay person. View attorneys as you would any other service provider who possesses skills and knowledge you don't (think plumber, electrician, IT specialist, and so on).
Most attorneys are simply ordinary people struggling to cope with the pressure of a monthly budget demanding up to 140 billable hours a month. The incentive to provide reasonable fees accordingly diminishes as job security is threatened, to the extent that budgets are consistently not met.
To a certain extent, senior attorneys are often technically weak when compared to their younger counterparts, as many have resisted technological advances and have not adapted with the fast pace of the modern environment.
In large firms, seniority is one of the main inputs that determine an hourly rate; expertise and skill are lesser criteria. Try to establish whether your attorney can talk the talk and walk the walk, not simply the former. Where possible, in larger firms opt for junior attorneys as they are cheaper and probably just as qualified to assist in the vast majority of cases (and if not, there is always a senior partner to bounce ideas off).
- Negotiate
Attorneys sell time. The incentive is therefore not to work particularly quickly or efficiently. For attorneys, the simplicity of a practical solution may be undesirable because this would compromise the ability to charge high fees. Instead, the driving force behind most attorneys' decisions is the profit-maximising motive. Prolonged negotiations, discussions and meetings simply make more money.
Of course, if attorneys took this to the extreme no one would use ABC Inc because of the firm's gross inefficiency. Attorneys therefore have the difficult job of balancing the apearance of efficiency without actually being so.
The information asymmetry means laypersons are often not in a position to judge what is or is not a reasonable fee. Attorneys thrive on their clients' ignorance, particularly in the case of individuals. Don't be afraid to ask questions about how a quote or fees are reached
Although usually reserved for big corporates, individuals should get the attorney to commit to a fee ceiling which cannot be exceeded without the client's prior written consent. Attorneys' hourly rates are exorbitant, despite protestations that they are market-related.
Ironically, most junior attorneys at large firms would not be able to afford their own services. Do not be shy in trying to "squeeze" an attorney's hourly rate down. Feel free to shop around before instructing an attorney, or tell him or her that a competitor has offered a lower hourly rate.
The more urgent and desperate the client, the less likely they will be to question fees upfront. Try and avoid this type of situation where possible.
Most importantly, never feel like the attorney is doing you a favour by assisting you with your problem – it's their job and they are often overpaid. Directors at bigger law firms earn more than R100 000 per month (excluding annual bonuses), so don't feel bad for being that finicky, annoying client – you're paying for it.
- Junior attorneys
One of the best-kept secrets in the legal world is that attorneys often have little input in relation to the end product, particularly when the matter is not unique or complex. Most of the work is often done by candidate attorneys or CAs (formerly article clerks), who are attorneys-in-training.
The attorney's role is often limited to a supervisory one, but that fact is hardly ever disclosed to the client. Budget pressure often results in attorneys converting CAs' time into their own and then charging at their hourly rate.
In real terms, this means that your attorney is in all probability not the one who drafted the contract or the legal pleadings. At larger firms, CAs charge between R800 and R1 000 an hour from their first day of employment.
So the trick is to highlight your price sensitive nature and your understanding of the profession when you instruct your attorney, and that you would like the majority of work to be done by the CA. The attorney can then supervise or review the work at his or her rate. This will definitely save you a lot of money.
In litigious matters, insist that all filing and serving be done by messengers (if it is a medium- to large-sized firm) because the simple delivery of a letter can cost you R1 000 if done by a CA.
- Other practices and fees
Although it is often unavoidable, try not to instruct attorneys on an urgent basis. Although it is not permitted, attorneys have been known to add a couple extra hours to their bill as a form of penalty for making them work unusually hard, late or on an urgent basis.
As a general rule, the bigger the firm, the less important the individual client. Corporate clients take precedence every time over the individuals and attorneys will prioritise their workload accordingly. Also, individuals tend to be more ignorant and more conducive to exploitation.
Finally, do not feel shy to question the bill when it arrives. Even better, request detailed itemised billing upfront.
The vaguer the bill, the more likely that the attorney has manufactured a couple of hours here and there.
Many attorneys use the description "professional services rendered" on their invoices. Advise your attorney that as a condition of his/her mandate, the bill needs to be appropriately detailed in order for it to be paid.
- Fin24
* Fin24 has this lawyer's contact details.
