Canadian Lawyer

34 J u n e 2 0 1 4 w w w . C A N A D I A N L a w y e r m a g . c o m about four per cent. The increased levels are, however, still some way short of the 2009 peaks, when 10-year calls charged $365 per hour, averaged across the nation. Despite those positive signals, many respondents also expressed concerns legal fees have hit a ceiling, a view particu- larly prevalent among small firm and sole practitioners, who account for the bulk of survey participants. Three-quarters of our respondents practise with firms of between one and four lawyers. "There is increasing financial pressure between what fees individual and small business clients can afford and the expenses of overhead and accessing operating capital," wrote one small firm lawyer from Toronto, summarizing the pessi- mistic view. Another sole practitioner planned to raise fees this year, but questioned how much longer that could go on when the "market is limited and not really growing, but there are more lawyers every year." Practice areas where lawyers particularly felt the squeeze included residential real estate and wills and estates. Despite small or non-existent profits in those areas, lawyers were split on whether to drop them from their suite of services. Real estate is "becoming commoditized and clients are not willing to pay the true value," said one respondent who had recently stopped offering real estate services, but many others persist, viewing them as loss leaders bringing in new business — which has been the case for many years now. Another loss leader dividing opinion among survey partici- pants was the issue of the free initial consultation. Just under 60 per cent who answered said they charge nothing for their first meeting with a client. Smaller firms were less likely to offer free consultations, with the proportion dropping to 53 per cent among respondents in one- to four-lawyer firms. More than three-quarters of respondents in firms with five lawyers or more offered initial consultations free. The chance of getting a free consultation also seems to shrink with the size of your community. Just 36 per cent of lawyers practising in communities with a population of 100,000 or less waived the initial fee, compared with 65 per cent of respondents from cities larger than 100,000. Those charging a fee tend to offer a reduction on their full hourly rate, but others were adamant clients should pay right from the start. "Free initial consultations are always taken advantage of and not worth the alleged goodwill. A lot of time is wasted," wrote one rural lawyer. An estates lawyer added a "significant consultation fee" is needed in their area because "if a client is not willing to pay $200 for an initial consultation then there is a 95-per-cent chance the meeting is going to be a waste of your time." However, a Newfoundland and Labrador lawyer said clients should not "have to pay to find out whether or not you're able to help them," but admitted spending "a lot of time not getting paid." For one Montreal sole practitioner, a free consultation is a matter of honour: "Many people are afraid to call me because they think I have a clock running and they will get a bill at the end of our first phone call. That is ridiculous. I don't know how lawyers who charge people to check them out can sleep at night." Many of our respondents are experimenting with alternative billing structures in an effort to keep clients happy and increase efficiency. An insurance boutique began offering blended rates after a client demanded alternate fee structures as a prerequisite for firms looking to bid on its business. Volume discounts, con- tingency fees, and unbundled services were popular options, but one lawyer at a mid-sized Vancouver firm conceded they struggle to get the sums right. " We increasingly get clients who would like to have accurate fee estimates, or better yet flat fees, but with most areas of our practice, we find it difficult to pro- vide estimates of flat fees," the respondent wrote. The information on the following few pages should help. Read on to discover the going rate in your area of practice. 60% 60% charge nothing for their first meeting with a client What do your clients need? The means to move on. Guaranteed ™ . Baxter Structures customizes personal injury settlements into tax-free annuities that can help your clients be secure for life. Need more information? Contact us at 1 800 387 1686 or baxterstructures.com Kyla A. Baxter, CSSC PRESIDENT, BAXTER STRUCTURES ntitled-1 1 13-09-16 2:53 PM Just under

• Cover