The next part of my series on “Better Decisions with Business Intelligence and Competitive Intelligence” will be about using BI and CI when pricing legal services. (Part One is here.) As I draft that post it occurs to me that we need some more common vocabulary, specifically around Alternative Fee Arrangements (AFAs). We’ve been kicking this term around for several years now, but I rarely meet two people who have exactly the same things in mind when they talk about AFAs.
To each their own, but here are the forms of AFA with which I have worked and how I think of each:
Billing all attorneys and every attorney class (partner, associate, of counsel) at the same hourly rate
Traditional straight contingency for plaintiff cases
“Reverse” contingency for defense cases
Often gradated based on phase of the matter
Percentages increase as case nears trial
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