“In the LUPE” Newsletter Legal Articles

Thinking Globally, Acting Locally

Want the answer to “what are you doing” to be “getting sued”? Follow the lead of an Illinois woman who tweeted that her landlord thinks it’s okay to rent out a moldy apartment, then found herself on the business end of a defamation lawsuit. For questions about the legal implications of Twitter, or anything else about the interplay between technology and the law, contact Matt Bierlein at (614) 229-4403.

The recession has necessitated some gut-wrenching human resources decisions. LNL can provide advice and counsel for the tough calls (example: an employer may reduce the wages, or number of hours, of an hourly employee as long as the employee is paid at least minimum wage). Steer through troubled employment law waters with the help of Melissa A. Izenson at (614) 229-4413, or Deborah Ecker at (614) 229-4402.

These days corporate counsel expect and demand personal service, geographic reach, quality control, AND cost savings from their law firms. So more and more corporate in-house counsel are turning to Meritas-affiliated firms (like, for example, LNL). Meritas’ stable of 6,500 lawyers offers top-flight expertise in all 50 states and over 60 countries worldwide at rates that can be $150 - $200 less per hour than mega-firms charge. Mega-firms = no. Meritas = yes.

At LNL we strive to maximize the value delivered to our clients. This simple concept is the reason why we’re sharing the following list of 10 ways to reduce legal costs, and maximize value, from your legal service provider¹. Not every point will apply to every matter, but we hope this helps you manage the legal aspects of your business (and your personal business) more effectively. 10 WAYS TO REDUCE COSTS & MAXIMIZE VALUE FROM YOUR LAWYER

1. Avoid Lawsuits – Yes, it sounds so simple, yet lawsuits happen. Minimize risk by consulting with your lawyer prior to terminating any business relationship, particularly employment or service contracts, as both are frequent candidates for litigation.
2. Seek expertise - Make sure your lawyer has the right experience and understanding of the project and is compatible with your business philosophy.
3. Choose the right law firm (local vs. regional vs. national vs. international) - Consider the complexity of the project and which type of firm is best suited for the matter.
4. For potential litigation:
   • Get a candid assessment of the merits of the case. Ask for strengths and weaknesses so you can properly evaluate the risk/benefit.
   • Ask for a written budget and timeline. This budget and timeline should be updated by counsel as the case evolves during the course of litigation.
   • Set caps on out-of-pocket costs such as legal research, experts and travel.
   • Understand the number of lawyers/paralegals to be involved in matter.
   • Get a precise engagement letter
     • Include budget details and timeline, which should be updated as required.
     • And the extras? Charges for faxes, small print orders, and in-town meals are things of the past at LNL and most other client-oriented firms. Billing full rates for air travel time is becoming less common.
     • Explore alternative billing arrangements - Consider the following:
       • Contingent fees. (LNL and many other firms will consider contingent fees on commercial cases these days).
       • Fixed fees for certain legal matters (e.g., securities offerings, stock option plans)
       • Monthly retainer for corporate counseling, employment or more routine work
       • Capped fees
       • Success fees
       • Blended hourly rates
       • The “D” word…volume discount
       • Streamline your business/legal process - Don’t have your lawyer do things that you or your staff can do. Ask your lawyer what you can do to assist with the process. To reduce billable time, be prepared for meetings with your lawyer and identify a single point person for dealing with the lawyer.
       • Seek involvement (without the meter running) - Ask your corporate counsel to attend quarterly board meetings for no charge or as part of a fixed monthly retainer.
       • Use form documents prepared by your lawyer - Have your lawyer prepare routine form documents that you can use with only occasional input needed from your lawyer.
       • Provide feedback - Communicate with your lawyer regularly to ensure that you receive the service you expect and deserve.

¹This list is reproduced with the gracious permission of our colleague Doug Holod, of the Minneapolis, MN-based law firm Maslon Edelman Borman & Brand, LLP ( www.maslon.com).

Speaking of feedback, please send us your thoughts about whether or not you think this information is valuable, or any other ideas/comments you have about how to maximize the value from your lawyer. Also, feel free to forward this to anybody else you think could benefit from it.