Fulbright Survey: Outside Counsel Services, Alternate Fee Arrangements Gaining Popularity
Annually, Fulbright conducts a survey regarding litigation trends, concerns and issues affecting corporate lawyers. Since 2004, Fulbright has published the results of their annual survey.
The recently released 6th Annual Litigation Trend Survey Report reflects good news for small firm lawyers and solo practitioners offering document review, e-discovery, and other general counsel services to large and small corporations.
In the 2009 survey, approximately 408 public and private corporate counsel were polled. They represent several industries, including insurance, real estate, retail, energy, health care and financial services and are from more than 10 different countries. The companies that were polled range in size from companies grossing more than $1 billion each year to companies averaging annual profits of less than $100 million. It’s worth noting more than 50 percent of the respondents reported earnings in excess of $1 billion.
Survey Topics and Findings
Fulbright generally surveys corporate counsel on issues concerning legal spending, budget concerns, and other general issues affecting litigation. However, the 2009 survey inquires about other issues that are of growing importance, such as how the economic downturn is affecting legal departments and corporations, alternate fee arrangements, the increasing use and costs of e-discovery, as well as the personal use of social media websites such as Twitter, Facebook, Myspace, etc by their employees.
The survey responders revealed interesting facts about the state of the legal profession and the direction in which it’s moving.
Alternate Fee Arrangements
When asked if their company offers alternate fee arrangements to its clients, 48% of the respondents replied, “Yes.†Of those, 40 % estimated as much as 25% of their alternate fee arrangements are completed by outside counsel.
Outsourcing to Outside Counsel
76% of the corporate attorneys indicate their companies outsource certain e-discovery functions to outside counsel. When asked to rate their satisfaction with outside counsel’s ability to meet their needs as they relate to electronic discovery, cost management and budget forecasts, a large majority (nearly 90%) indicate they are satisfied with the services provided by outside attorneys.
Prevalent Types of Litigation
45% of the respondents indicate the most prevalent type of litigation pending against their companies are contract disputes, labor and employment matters, while 25% percent chose personal injury as the most common litigation matter they’re dealing with.
Will We See a Rise in Litigation in 2010?
Approximately 52% of the respondents believe we will witness a rise in litigation and legal disputes amongst companies in 2010. Of the respondents, 38% cited the economy as the primary reason for the anticipated rise in litigation.
As we approach 2010, legal departments and corporations are looking for cost-effective ways to outsource their legal work, like document review, contract drafting, and e-discovery management. They are in search of outside small firm attorneys that offer alternate fee arrangements, impeccable service, extensive knowledge and legal expertise.
I’d like to know your thoughts on corporations that are outsourcing legal work to small firm attorneys in the U.S. Do you think this trend will continue into and throughout 2010?
