Alternative Fee Arrangements Not Yet Alternative

Fixed fees, alternative fee arrangements, value-based billing, whatever the label — in complex cases, which make up the bulk of our legal spend at Qwest Communications International, we just don’t see the benefits … yet. Call me unevolved, but in large, complex matters, I prefer the hourly rate with trustworthy outside counsel teamed with highly engaged in-house attorneys.

Let me be clear, I am not talking about high-volume, repetitive matters, which can be better suited to alternative fee arrangements. The problem is that the bulk of our outside counsel spend is not on such matters. Instead, we spend most of our money on complex legal challenges: thorny commercial disputes, large class actions, IP litigation, etc. Someday, when e-billing truly enables visibility into costs and processes, then clients like us will be able to assess whether in such cases alternative fee arrangements are, in fact, a good alternative to the hourly rate. Until then, we will continue to focus on drastically improving the efficiency of how legal services are delivered, leveraging technology, and actively managing our matters through key risk-reward decisions.