Baker Donelson recognizes that alternative pricing models can reduce inefficiencies, increase productivity, and improve the way we deliver legal services, while better aligning the cost of the engagement with value to the client. We believe AFAs are truly a collaborative effort with clients. Pricing models require a thorough evaluation of several key factors such as matter type, amount of required work, whether the matter involves repetitive or complex issues, client exposure to damages, client philosophy and approach to litigation, and historical cost of similar matters. Baker Donelson has employed models including fixed fees, fee caps, phased fixed fees, blended rates, collars/incentives, tiered volume rate discounts, and annual portfolio-based success fees to achieve objectives such as predictability and risk-sharing.

Case Study

  • Client: Baker Donelson’s Labor and Employment Practice Group
  • Problem: The Group wanted to develop a consistent alternative fee model for certain types of cases to provide clients with more predictability and a pricing model that shared risks between client and Firm.
  • Solution: Baker Donelson’s LPMO initiated pricing strategy meetings with the Labor and Employment Practice Group and an in-house counsel representative to bring subject matter experts together to investigate innovative pricing solutions. The team met for two days to evaluate the life cycle of typical L&E matters, historical spend, and jurisdictional practices to develop pricing options based on these factors. The meetings resulted in phased fixed fee alternative pricing models. Additionally, the teams produced supporting resources such as budgets, model agreements to be presented to clients, and checklists to increase matter efficiency.

“The price of legal services is not as important as the lawyer, and I hire my lawyers based upon trust. What appeals to me about Baker Donelson’s pricing process and the integration of LPM is having a roadmap, identification of the tasks to be accomplished, and instilling discipline into the process. Again, although trust is more important than price, inherent in trust is clarity, and that is what is guaranteed by Baker Donelson’s approach.”

In-House Counsel for a National Property Development Company

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