Business of Law: Companies finding ways to motivate attorneys, limit risk, and save money.

By: Jeremi Young

Publication Date: 07/01/06

No love has been lost between trial lawyers and Corporate America.

Now, however, big business has discovered something about its archenemy that has placed the trial lawyers in a new light: They know how to win. What's more, they know how to win on a budget.

Companies that need to initiate litigation have traditionally turned to the same firms that have defended them from lawsuits in the past. These "defense" firms typically bill by the hour - $200, $300, $400 or more an hour, regardless of the results.

Savvy consumers of legal services across the nation are beginning to realize that this fee model encourages the expenditure of time rather than fostering a focus on results. Trial lawyers, however, tend to take cases on a contingent-fee basis. That usually means they aren't paid unless they win. This approach aligns the lawyers' immediate economic interests with the client: Both want to win as much as they can at the least amount of cost.

A recent article in the National Law Journal discussed this trend, noting that hiring lawyers on a contingent-fee basis is attractive for companies trying to control litigation costs.

Business of Law: Companies finding ways to motivate attorneys, limit risk, and save money cont.