Organisation Description Year
Baker Tilly

Climate Change: Forecasting the Impact of the Legal Services Act October 2010

Reports on a new law form MJ Hudson that is offering an
alternative to hourly billing by following the investment bank model of a monthly retainer and a percentage of any successful transaction (although

2010
Ministry of Justice

Scoping project on no win no fee arrangements in England & Wales

Discusses payment schemes for media cases (privacy etc), employment tribunals (page 6).

2009
Kings College London

The Work of the Family BarReport of the Week-At-A-Glance Survey 2008Debora Price PhD & Anne Laybourne MSc

FGF fees calculator showing how fees are compiled for family legal aid work undertaken by a barrister – variables include type of activity, function, category and level of advocate.
Pages xiv – xv

2008
Acritas

2010 Global Elite Analysis

Information on charging structures and expected changes

2010
Fordham Law Review

Supply Chains & Porous Boundaries: The Disaggregation of Legal Services, Milton C Regan Jr & Palmer T Heenan

Issues with hourly billing and efficiency. Long term pricing model based on fixed fee is seen a s key to efficiency – page 2155

2010
Harvard Law School

Overview of the Professional Services Industry and the Legal Profession

Looking at law firms in the US corporate clients are exerting more control over costs:
Roughly one-third of companies also are experimenting with alternative fee arrangements. IKON Office Solutions, for example, uses fixed-fee arrangements for all of its non-compete litigation. Such agreements provide valuable predictability for companies seeking to create budgets at the beginning of the year. Other corporations have experimented with more complex fee regimes in order to give firms an incentive to resolve matters quickly. Blended rates, in which the client and law firm share both the up-side and down-side of legal risk, are becoming increasingly common. Still other companies, most notably General Electric, have conducted online-auctions to find cost-effective firms. Page 6

2008
Oxford University

Why every economist should learn some auction theory

paper asks whether price transparency is always a good thing (page 13) – firms can see what their competitors are charging (page 14). Sealed bid actions are generally preferred (page 15) to avoid dangers of collusion.

2001
Department for Constitutional Affairs

The funding of personal injury litigation: comparisons over time and across jurisdictions Paul Fenn, University of Nottingham Alastair Gray, University of Oxford Neil Rickman, University of Surrey Yasmeen Mansur, University of Nottingham

Reports a study of personal injury cases involving different sources of plaintiff finance (in particular legal aid, private finance, legal expenses insurance and trade union finance). This allowed the researchers to consider the impact of the source of finance on the handling of the case. They found that:

Legal aid appears to focus on the severity of an injury, whereas other sources of finance such as trade unions are more likely to take account of liability. Privately financed cases were likely to be associated with high levels of defendant (perceived) liability.

Legally aided cases consistently are associated with longer delay to case closure than alternative sources of third party funding (legal expenses insurance and trade unions) or private funding, even having controlled for case severity. This reflects different incentives facing clients and lawyers to settle. From the NHS Trust dataset, we found that:

2006
University of Oxford

University of Oxford questionnaire on funding, costs and proportionality

Barrister

2009
University of Bristiol - Professor Paul A Grout

The Clementi Report: Potential Risks of External Ownership and Regulatory Responses – A Report to the Department of Constitutional Affairs

Lawyers undertake training at the start of their career to obtain relevant qualifications, they then develop these skills over time, develop reputations, valuable contacts, etc. If the lawyer acts as a sole trader then these skills will be reflected in their fees with the better lawyers being in a position to command higher fees. Economists tend to refer to these personal skills as human capital and think of the fees as the return on that capital – Page 1

we have good evidence in other professions that behaviour is

2005
Bar Council

The Public Access Scheme – Guidance for Lay Clients

Overview of how barristers set their fees – page 10

2010
Society of Trust & Estate Practitioners

Trusted advisor: THE FUTURE A report on the future of UK trust and estate practice by the Society of Trust and Estate Practitioners

Highlights increasing resistance from clients to pay by the hour, wanting fixed fees. – page 10

2010
Ministry of Justice

The extent and value of pro bono work provided by legal executives

A quarter of legal execs surveyed said they had carried out pro bono (i.e. free) legal work – page i.

2008
Department for Business Innovation & Skills

Zero

Services delivered by Citizens advice, substantiated by research:
Around 3 million people are helped each year, covering over 5 million problems. The satisfaction rate of clients is very high.

2006
Kings College London

The Work of the Family BarReport of the Week-At-A-Glance Survey 2008Debora Price PhD & Anne Laybourne MSc

Argument for highly graduated fees – costs are driven by Characteristics of Client, Characteristics of Case, Client’s Role & Related Preparation, Seriousness of Consequences of Failure in Court – Pages 71-96

2008
Civil Justice Council

Improving access to justice: contingency fees – a study of their operation in the United States of America – Richard Moorhead, Judge Peter Hurst, Robert Musgrove.

In the US, contingency fees are typically around 33% (page 8). There’s no regulatory cap on them.

2008
AdviceUK

It’s the system, stupid! Radically rethinking advice

Summary of fixed fee payment reforms (page 20) – and some of the challenges this new system posed.

2008
Pinsent Masons

Introducing Certainty The Pinsent Masons approach to successful tribunal management

Breakdown of fee calculation for clients who are employers where a case goes to tribunal – fixed price risk analysis – pages 2, 6 & 7.

2010
Routh Clarke Solicitors

Guideline rates

Brief history of Guideline Hourly rates used as a starting point for assessment of solicitors costs and how they have been set

Historically the hourly rate covered the cost of the solicitor (33.3%), the office overheads (33.3%) and a profit element (33.3%). More recently it has become much more a question of what the market will pay, or sometimes what the market will bear.

2010
HMCS

Guideline Hourly Rates for 2010

List of guideline hourly rates 1999-2010 split by Bands of Location, type of court, grades of fee earner, and length of hearing for counsel.

2010
Europe Economics

Report for Bar Council – A critique of the evidence used by the LSC for its BVT proposals

The LSC pays a range of fees for criminal work (pages 4-6).

2009
Criminal Bar Association

Legal aid – funding and access

Mention of best value tendering etc – which the bar (page 2).

2010
Judiciary

LORD NEUBERGER OF ABBOTSBURY, MR 25TH ANNUAL BAR CONFERENCE THE TYRANNY OF THE CONSUMER OR THE RULE OF LAW 6 NOVEMBER 2010

Equates low cost with poor value in terms of the overriding public interest – Page 5.

2010
Institute of Legal Executives

ILEX Members are Fee Earners

Once they have completed their first stage of academic training (the ILEX Level 3 Professional Diploma in Law and Practice course), employers (on a court assessment of costs) can charge Trainee Legal Executives fee-earning time up to

2010
Centre for Socio-Legal Studies / University of Lincoln

International conference on litigation funding

Fees for various litigation funding models in different countries summarised (page 27 onwards)

2010
The Law Society

Starting a business

Fees will vary by individual circumstances, experience and knowledge of your solicitor, the type of advice.

2010
Ministry of Justice

Study of legal advice at local level

Report covers fixed fees for legal aid work (page 7). Report explains how this fee level was first set (page 8). Further explanation of fixed fees for legal aid (page 40 onwards).

2009
Association of British Insurers

MARKETING COSTS FOR PERSONAL INJURY CLAIMS Evidence of market failure Report from Oxera Consulting Limited

Report into PI market:
defendants

2009
Marc Galanter & Simon Roberts

From kinship to magic circle: the London commercial law firm in the twentieth century

In the 1990s, for city law firms an entrench culture of long term client loyalty and limited fee negotiation came to an end, as corporate client sought to reduce costs. Fees set against an hourly rate or by reference to the value of a transaction gave way to the price for the job, via competitive tendering. Page 19

2008
Bar Standards Board

Perceptions of barristers Research study conducted for the Bar Standards Board by IPSOS MORI November 2007

Suggestion that higher rates of pay is linked to better service -
when asked what would improve the service that they provide, 19% of barristers say better pay, 9%, more specifically, say better pay for legal aid, and 9% say better listing by courts – page 21
See Figure 12.

2007
European Commission for the Efficiency of Justice (CEPEJ)

European judicial systemsEdition 2006 (data 2004):Efficiency and quality of justice

Table 60 How lawyers fees are set by country – page 131

2006
Winand Emons

Credence Goods & Fraudulent Experts

Discussion of incentives for experts in delivering credence goods – where consumers are never sure how much of the good they need. Experts incentives are determined by the interplay of prices capacity and size of their client base. Pages 106-109

1998
Judiciary

Advisory Committee on civil costs – Guideline Hourly Rates

For Personal Injury (PI) and Clinical Negligence (CN) cases, the hourly rates charged by defendants

2010
FindLaw

Client Driven Innovation in Legal Services – The State of the Legal Profession, Part 1 By Andrew Zangrilli of FindLaw

Reports on large corporates demands for value billing:
Value billing can be defined in different ways in the legal context. The basic idea is that a firm prices its services based on an understanding of the client’s goals and perceived value of reaching those goals. The usual result is a predefined fee for a specified legal service.
value billing ensures that legal work is performed and staffed efficiently. A firm can benefit from value billing if it can complete work under budget. There are, of course, risks and consequences for overworking a matter. As a result, firms are encouraged to operate with both eyes on operational efficiency.
The prevailing hourly billing method, under which law firms charge for “actual” time expended on a matter, has proved too unpredictable for corporate budgetary frameworks.

Value billing ensures that legal work is performed and staffed efficiently. A firm can benefit from value billing if it can complete work under budget. There are, of course, risks and consequences for overworking a matter. As a result, firms are encouraged to operate with both eyes on operational efficiency.

2008
Cardiff University

Damage based contingency fees in employment cases

In relation to survey, percentage rates for conditional fees discussed (page 42). Notional hourly rates for contingency fees discussed (page 47). Report indicates that DBCFs are less profitably than hourly rate work (page 51).

2008