Tips on Keeping Legal Fees in Check

By Nadler, Paul S. | American Banker, February 17, 1993 | Go to article overview

Tips on Keeping Legal Fees in Check


Nadler, Paul S., American Banker


As bankers push to control costs and improve their efficiency, one area impeding profitability is the cost of legal services.

There are a number of reasons.

On is that more-complicated financing devices and extra regulation have demanded more legal protection.

In addition, we have seen the United States become a far more litigious society. In the past, when something went against our wishes, the normal response was to curse. Now it is to sue.

Creative Charges

On top of this, legal costs have soared as law firms have raised rates and costs to the sky.

These companies have developed creative charges such as "keyboarding, telecopier, and transmission" fees, which include fees for receiving each page of fax transmissions.

On top of this, legal fees take priority over almost everything else in time of trouble, draining bankrupt companies and their creditors with an inexorable flow of invoices for "billable hours."

This explains why so many banks settle nuisance suits that have, in their opinion, no legitimacy -- settling is cheaper.

One strategy that many banks have tried is to hire an in-house lawyer or to expand their own internal legal operations. But this does not solve the problem. The law is complex, and one lawyer or even a small staff cannot handle the various specialties needed to respond to every suit or development.

Fighting the cost of this litigious environment is explored by two lawyers writing in December's Journal of commercial Lending -- a publication of Robert Morris Associates.

The authors, Richard T. Nassberg of Philadelphia and Irwin L. Gubman of San Francisco, offer a number of ideas for curbing legal costs. They include:

* Compare rates charged by various firms.

* Look to smaller communities for some legal services. The rates there are lower and quality may well be the same.

* Watch out for bills for "working-group meetings" -- a term meaning that a number of lawyers have sat down to discuss your case, when one lawyer working alone may well be able to do the job.

* Establish research goals and don't let the law firm reinvent the wheel by doing research the bank has already done. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Tips on Keeping Legal Fees in Check
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.