Some corporate legal departments are relying more and more on alternative fee arrangements.
According to an article in The Washington Post, some legal departments are saying non-hourly rates for litigation are more common because in-house counsel are able to deal with and understand alternative fee arrangements.
United Technologies’ general counsel says 70 percent of its legal fees and litigation fees with its outside law firms are non-hourly after the company started emphasizing alternative fees in 2007. Instead of an hourly rate, the outside law firms divide litigation matters into phases: investigation, discovery, trial preparation etc. They then charge the company a flat fee for each phase.
Here’s our question for you:
Do you think non-hourly rates will become more prevalent among in-house legal departments?