The conflicting interests between clients and attorneys regarding legal billing; clients seek the best outcomes at the lowest cost, while attorneys often prefer fee structures that maximise revenue, such as hourly rates. AI-driven legal billing tools could improve transparency and create a merger of interests between the two parties.
Hourly billing can incentivise attorneys to prolong cases, contrasting with clients’ desire for cost-effective resolutions. Alternative fee arrangements like fixed or capped fees may alleviate some conflicts. Still, they also come with challenges, including complexities in establishing suitable models and potential issues with predicting actual costs.
Furthermore, these arrangements may result in subpar performance from attorneys, as they might limit the amount of work put into a case. Miscommunication regarding expectations and scope of work can lead to dissatisfaction. Both clients and attorneys must work together to set clear and realistic expectations to improve the billing experience.
Source: Lexology
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