Photo courtesy of PunkJr 8 Frugal Tips for Legal Matters
“The good lawyer is not the man who has an eye to every side and angle of contingency, and qualifies all his qualifications, but who throws himself on your part so heartily, that he can get you out of a scrape.” - Ralph Waldo Emerson
I recently was asked some questions from readers about legal matters, especially when it comes to trying to deal with legal matters while living on a budget. As these things are a bit beyond my level of expertise, I turned to a friend, Andrew Flusche, a lawyer in Virginia who has done some excellent work for me in some of my online ventures. In addition to being a good lawyer, he’s a great guy, and someone I trust, and intelligent to boot.
I asked him for some frugal tips for people dealing with legal matters, and what follows are some of his suggestions and thoughts, in his words.
1. Do you need a lawyer?
Before you do anything, ask yourself this question: Is a lawyer necessary? The best way to save money on legal expenses might be to keep lawyers out of the equation. This definitely isn’t right for every legal matter, but it could be right for yours.
If there is very little money at stake, hiring a lawyer may not be cost effective. You might be better off trying to resolve the matter yourself. Sometimes a polite phone call or letter can go a long way.
Even if the issue is significant, helping yourself might be an option. A variety of good do-it-yourself legal handbooks exist, such as those by Nolo Press. Your local library will probably have similar books ready to check out.
2. Go to small claims court.
Small claims court exists for a reason. It helps people have their day in court to resolve small disputes. The precise rules and requirements vary by jurisdiction, but it can be a cheap option to litigate a monetary claim.
You can generally pursue amounts up to a few thousand dollars in small claims court. The filing fees are usually a small amount. You typically do not hire a lawyer in these cases; you pursue the case on your own.
3. Buy unbundled services.
Perhaps you need a lawyer for part of a matter, but you can handle some things on your own. Unbundled legal services could be the frugal solution. This innovation breaks down legal services into discrete parts, letting clients purchase only what they need.
Under this model, you could hire an attorney to just give advice on a certain situation. Or you could hire someone to review contracts for you.
Unbundled services can be a win-win deal for clients and lawyers. The client gets exactly the needed services and only has to pay a minimum amount. And the lawyer can work on discrete matters for a variety of interesting clients.
4. Educate yourself.
Regardless of the legal option you choose, you need to educate yourself. Even if you hire an attorney for all your legal needs, you should make sure you understand what’s going on.
One simple thing you can learn is legal terminology. Your attorney should be able to speak to you in plain English, but there are still legal terms involved. If you take the time to find definitions for things, you save your attorney’s time in explaining them to you. In most arrangements, saving time for your attorney saves you money.
5. Provide all the details.
After you have decided to hire a lawyer, you have to communicate with him. To help your lawyer work as efficiently (and cheaply) as possibly, get all your details together. If you’re prepared to answer the lawyer’s questions, you can make the most of any meetings you have.
In today’s computer age, it’s easy to keep records and documents handy. You could just create a Google Doc of information about your case. When something happens or a memory resurfaces, make a note of it. You could share this Doc with your attorney through Google or just email it to him.
6. Group your questions.
If your attorney is billing by the hour, you want to minimize the time he has to spend on your matter. Most attorneys bill in six-minute increments, so even a quick phone call to your attorney will cost 1/10th of an hour (possibly $25).
This doesn’t mean you shouldn’t contact your attorney. But you should be efficient in that contact.
Don’t call your attorney five times during the day. Make a list of things you’d like to talk about and call once. The same applies to email.
7. Ask for alternative billing.
Lawyers don’t have to bill by the hour all the time. In fact, many lawyers are using different billing methods precisely to lower the cost of legal services. If you want to lower your attorney’s fees, ask about alternate billing arrangements.
Contingency fees are a popular method of billing in cases like personal injuries. You pay your attorney a percentage of the amount you recover.
Attorneys use flat rate billing when the amount and nature of work is predictable. If you have a routine traffic court matter, a flat rate might make your cost easy to foresee. Flat rates can also help you get a simple will drafted and signed.
8. Stay focused on the goal.
A wise business attorney told me that the client is truly in trouble when they’re fighting “for the principle of the matter.” If you’re fighting for prinicples, your costs will likely skyrocket. That doesn’t mean you shouldn’t stand up for your beliefs, but sometimes fighting in the legal arena can be a bad business decision.
The same rationale applies to people who want to harass people through the courts. An unscrupulous attorney might help you, but it will likely be expensive. Do you think an attorney who will simply harass your adversary will turn around and bill you fairly?
Always keep your focus on the end goal, and make sure your attorney knows that goal as well. Ask yourself how certain decisions might affect reaching that goal. If you get off course, talk it over with your attorney and get back on track. You’ll save money in the end.
Andrew Flusche runs his own private law practice in Fredericksburg, Virginia. He helps with Virginia legal matters, including trademarks, copyrights, litigation, and probate.
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- Posted on 29 May 2008 in Finance & Family |
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Comments (32)
SpaceAgeSage Says:
May 29th, 2008, 21:29 pm
Legalzoom.com worked for me in setting up a will, power of attorney, and medical power of attorney. Total cost was around $140.
Marc and Angel Hack Life Says:
May 29th, 2008, 21:59 pm
When you are faced with any form of legal battle, you have to make sure that you have your facts straight. Any fluctuation of your story or stand at any time during the process undermines the integrity of your entire argument.
Marelisa / Awakening the Warrior Says:
May 29th, 2008, 22:15 pm
You can try mediation before resorting to a court of law. Also, approach a law school nearby and see if they have a clinic that caters to your particular type of case (clinics allow law students to practice on real cases and are set up around many different issues; they will represent you for free and there’s always a faculty advisor so you’re not just getting the advice of inexperienced law students). Also, check the lawyer’s reputation before you hire them. When you’re in a legal mess a good lawyer can be your best ally; a bad lawyer, however, can rob you blind and lose the case to boot.
Laurie Says:
May 29th, 2008, 22:34 pm
In starting a new small business I used an online legal service to file legal papers and to set up the LLC that my company would be opporating under. It was very helpful and a lot cheeper!
Vered Says:
May 29th, 2008, 22:42 pm
As a former attorney, happily not practicing anymore, I absolutely agree with #1. Hiring an attorney, and especially going to court, are so costly, that they should only be a last-resort.
Bob Says:
May 29th, 2008, 22:46 pm
“A lawyer who represents himself has a fool for a client.” This is a longstanding adage in the legal profession, and for good reason: When it comes to trial, there is no substitute for actually knowing what your’e doing.
A reasonably intelligent person can handle most paperwork-type legal issues - filling out government forms, drawing up a simple contract - but when an issue is adversarial, foregoing an attorney is asking for an adverse verdict. What seems like a common sense approach to settling that angry client’s suit may well be what earns him a judgment against you, punitive damages, plus costs.
The only way anyone should ever consider representing themselves in a matter that may end up in court is if they’re wiling to risk their business, their home and possessions, their finances, and potentially bankruptcy. Otherwise, drop the dedication to the cheapest way out and pay for a good lawyer; it can literally be the difference between being a successful businessperson and being penniless on the street.
The Daily Minder Says:
May 30th, 2008, 0:40 am
And don’t stress!!!
Stress makes any legal matter 100 times worse than it already is.
TDM
Edwin | Fitness Chapter Says:
May 30th, 2008, 5:52 am
Exercise before attending a court session! Well, at least it works for me. Keeps my mind going so I can think straight.
Edwin
Dave Says:
May 30th, 2008, 6:59 am
I like the post, but in truth I just popped in to see if the ALL ONE guy had been in yet. LOL.
Amram Jochabed Says:
May 30th, 2008, 7:20 am
ALL ONE, Dave! All One your case will save!
All One, All One!
Without All One, legal matters will not be won … victorious cases NONE!
All One, One True … representation for you!
1, 2, 3 … Legal ABC’s … All One principles set you FREE!
Four, five, to stay alive … CODE FIVE, CODE FIVE!
ALL ONE cannot be UNDONE … All One or legal matters NONE!
Tell the people, DAVE … ALL ONE to SAVE!
Leo will not tell; all with him cannot be well.
ALL ONE, Leo! All One for ZH … before it’s TOO LATE.
Jeff@My Super-Charged Life Says:
May 30th, 2008, 8:16 am
I like the emphasis here on handling as much as possible on your own. I believe everyone needs to take personal responsibility for their actions and try to work things out without the need for a lawyer. It is always better to do everything possible to avoid litigation. Once you are in court, anything can happen. I prefer to avoid it altogether with some good diplomacy up front.
However, I have also benefited greatly from the advice and assistance of a good attorney. In come cases, it is unavoidable. Great job on this article!
Maria - Never the Same River Twice Says:
May 30th, 2008, 9:07 am
I would add that if you truly don’t have money to address a legal matter and you live in the U.S., it’s worth looking for a Legal Aid chapter. They exist in most cities with a courthouse and help low income people with a variety of non-criminal legal issues such as family law cases and rent/homeowner issues.
Strong One Says:
May 30th, 2008, 9:39 am
All very good advice. I will definitely keep this in mind.
Thanks.
Chris Austria Says:
May 30th, 2008, 9:48 am
There have been times when I hired lawyers and discovered that I really could’ve handled the issue by myself. There have been times when I handled things by myself and wish I had a lawyer to help me.
The most important lesson I learned here is that before anything else, educate your self.
Unfortunately educating yourself takes time. But consider the time and money you will waste without educating yourself.
The easiest thing to do is higher a lawyer and allow them to handle everything. But only people with a plenty of disposable income can do this.
B Smith @ Wealth and Wisdom Says:
May 30th, 2008, 10:14 am
Leo-Wow, I’m not used to hearing non-zen advice from you!
I think it depends on your skills/knowledge and what you are doing. Setting up a will is easy and most people should do it themselves. That being said, if you are on the Forbes 400 list, you need help due to the complexity of your estate.
Also, sometimes a one time fee will pay dividends down the road. Having a lawyer draft a basic contract that you will use again and again is a good expense.
Jonathan B. Says:
May 30th, 2008, 10:36 am
Some may also want to consider a service called Pre-Paid Legal. My brother uses them and says it has been a great money saver.
Rob Says:
May 30th, 2008, 13:44 pm
I work for lawyers, so I enjoyed this post very much. Points 5 and 6 are crucial. For a lawyer, time = money, so if you expect your lawyer to spend a lot of time sorting your records and talking to you on the phone, you can also expect to pay lots of money. You can save $$ by organizing your papers before you give them to us. For example, we had a client who asked us to sort out a huge old shopping bag full of icky coffee-stained, receipts for her. She paid through the nose for this service. Another tip: insist on getting itemized bills. Your bill should show you the date, name of the attorney, amount of time spent, and a detailed description of the work. Finally, don’t wait until the last minute to hire a lawyer. You will certainly pay top dollar if you make us work a 15-hour shift to prepare your documents that are due in court the following day. R
David Esq. Says:
May 30th, 2008, 15:12 pm
We lawyers bill by the hour and the best thing you can do to reduce costs is be ORGANIZED. Don’t contact your counsel by email or phone to ask one question or relate a single fact. Collect your thoughts in a list and go over several at once. Litigation is especially stressful, but don’t use your lawyer as a psychotherapist. Keep a diary, talk to a qualified professional, and remember that the clock is running even if you are chatting with your attorney about your difficulty getting to sleep or bad back.
Chris Austria Says:
May 30th, 2008, 15:22 pm
@David Esq.
Thanks for the advice David. I will definitely keep this in mind the next time I get into sticky situations.
pamela ruth munro Says:
May 30th, 2008, 15:42 pm
I have actually had great success in dealing with many routine legal matter on my own. I fought off a threat of eviction on my own, even though I knew I COULD resort to our legal services plan if I had to. But with the help of the NOLO press & the internet, it wasn’t necessary & I saved a few hundred dollars. I have also had success in fighting off tickets, etc. - even when lawyers have told me not to bother! And I do think that self-education is essential in these litigious times. I call it “playing lawyer” - must have been one in another lifetime.
Shilpan | successsoul.com Says:
May 30th, 2008, 16:36 pm
Leo -
I have several businesses. I normally use legalzoom.com to incorporate my business ( LLC or Subchapter S Corp).
I also have developed a team of professionals that help me with my real estate business(hotels). They are not cheap but I think when it comes to legal and accounting, you do not want to go with the cheapest as it may cost dearly to do so.
Shilpan
Liara Covert Says:
May 30th, 2008, 23:06 pm
In Australia, you can also visit the post office and purchase certain kinds of standard legal agreements such as general “power of attorney,” “medical power of attorney” and even a basic will and testament. You can always get an intrduction to these kinds of practical matters before you decide to consult a lawyer.
Ryan McLean Says:
May 31st, 2008, 1:28 am
I love the idea of educating yourself.
I run a financial blog and I often say “the best return on investment you will ever get is when you invest in your own education”
Great blog post
Tony's Photography blog Says:
May 31st, 2008, 12:32 pm
I would think that keeping your emotions at bay would save you tons.
Tony Says:
May 31st, 2008, 12:33 pm
oops sorry for the double comment, but forgot to mention that I agree on the small claims tip, I have been successful there.
James Says:
May 31st, 2008, 13:28 pm
While this isn’t especially useful for me right now, I will no doubt have legal issues to contend with in the coming years. It’s useful to have this sort of knowledge for the future. What I like is how you turned to a blogging friend (Andrew) for his input. Great example of how important networking is when it comes to blogging (and indeed all walks of life).
James,
Organize IT
Frugal Dad Says:
June 1st, 2008, 11:07 am
Great advice, and very timely! My wife and I are shopping services to update our will, and I need to have some contractual documents reviewed by someone smarter than me on contract law.
The first commenter mentioned LegalZoom.com. Interested to hear if anyone else has tried it, and if so, it is a viable alternative to having a lawyer in your state draft a will.
Peter K Says:
June 1st, 2008, 19:45 pm
My first impulse was to quote William Shakespeare (Henry VI, Part 2, act 4 sc.2) but that would be frivolous: law is a serious matter and I’m glad to see this post and so many sensible replies. I’m in South America, where law is often arbitrary and dangerous without guidance . Perhaps with good courts a quick and efficient resolution is possible. here, all cases become long, drawn out and expensive to all parties.
Anywhere - avoid resolving disputes through the courts. I think a judge is a last resort (nowadays, when the West is really Wild, in the Tame Old West there were other “last resorts” :)).
Compromise, mediation is usually possible and very often confrontation comes from misunderstanding in the first place.
(By the way, it was one of Shake pear’s minor characters, DICK: “The first thing we do, let’s kill all the lawyers”- After CADE, a rebel, tells of all the wonders he will do when he becomes King, which he doesn’t of course)
jess Says:
June 2nd, 2008, 4:38 am
good post. my only point would be that not all lawyers are “him” and “he!”
ramenrentresumes.com Says:
June 4th, 2008, 11:50 am
What a useful article. It’s kinda crazy how they bill so much….and never tell you what it all adds up to!
Shanel Yang Says:
June 11th, 2008, 17:16 pm
All good tips! I’d like to add a few that might help based on my own 10 years of litigation experience in Los Angeles.
1. Make friends with a lawyer. Believe it or not, we lawyers love to give advice, even for free! And, many do. For example, many do volunteer legal work, bounce ideas off one another and other professionals all the time without billing for it. Not only does it build networks and goodwill, but it’s also fun and a welcome break from the usual drudge work of the day. As long as you don’t abuse it by, say, only calling your lawyer friend when you have a legal issue to ask for some free advice, most lawyers would be glad for the chance to help out their friends in this way. Of course, this kind of assist is a two-way street; so, be willing to return the favor if they need it and you can.
2. Interview your lawyer. If you do think you need a lawyer, you can save a lot of time and money in the long run by making sure you pick a good one. That’s not necessarily the most expensive or most experienced one. In my article “Broken Promises or Breaches of Contracts,” I list 20 questions that you should ask when you are meeting your lawyer face to face for the first time to interview him/her. Don’t be intimidated into not asking all the questions you need to feel confident in your attorney. Although you can always fire your attorney, you still have to pay for all the services and expenses he/she already provided, and the new lawyer has to start over to learn the facts of your case, etc., essentially resulting in you getting billed twice for the same work — legally! So pick wisely the first time.
3. Help your lawyer help you. Provide as much information as you can up front and update with any additional information as soon as it becomes available to you. If your lawyer thinks it won’t hurt, conduct your investigation into further facts. Note: Never try to contact any parties or witnesses who have lawyers representing them in the case! In a few of my cases, my clients provided me with critical information that basically forced the other side to settle very cheaply but not until we were getting ready for trial. When I asked them why they didn’t bring these things to my attention before, they shrugged their shoulders and said they didn’t think it was important.
There’s so much more I could add, but this comment is long enough. Check out my blog for more free legal advice if you’re interested.
Thanks for the great post, Leo!
Minnesota Attorney Says:
August 4th, 2008, 16:52 pm
As an attorney, I think this is great advice. People need to know how to save money on legal fees, so they only use an attorney when it is in their best interests. Besides, as an attorney, I don’t want to waste people’s money on legal fees unless I am providing them value. Thanks for the great tips!
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