Get Business Legal Advice At Bargain Rates
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Businesses today face a dizzyingly complex maze of laws, litigation and regulation. But few have the in-house
legal talent to prevent charges of wrong-doing -- or defend against them.
Result: Businesses that haven't planned ahead can pile up huge fees for legal advice that can be downright
dangerous.
Better: Set up a legal management strategy before your business is sued or charged with a regulatory
violation. Doing so requires knowing where you are most vulnerable to legal action and knowing whom to
turn to if trouble does strike.
With a plan like this in place, you are prepared to get the best advice for your money.
WHERE TO START
Hiring an in-house attorney only makes sense if you're spending $1 million or more a year on legal fees.
Even then, no single attorney is expert in all legal specialties. You would still have to rely on outsiders for
some needs.
The in-house attorney for a high-tech company might know something about patents and deal making, for
example, but could be clueless about defending against an age-discrimination suit.
Strategy: You probably already have a local attorney who helped you set up the business... provides
occasional tax advice and a little advice on how to comply with local laws. That's the person to go to first if a
legal problem arises. He/she can handle the first steps in a legal challenge and help you find the specialized
service that will carry you the rest of the way.
If you don't have such a "utility" lawyer, shop for one among local attorneys who have done work for
businesses similar to yours.
IDENTIFY YOUR EXPOSURE
The best strategy by far for keeping down legal bills is not getting sued. And -- the best way to do that is to
protect yourself where you are most vulnerable.
The most treacherous legal area for most businesses today is workplace discrimination -- age, disability,
race, sex -- and sexual harassment.
Each law governing discrimination in the workplace has its own threshold for applicability. Some apply only to
businesses with more than 15 employees. Others kick in only when the business has 20 employees.
But since these thresholds are based on a moving average of how many employees you had in the last
calendar year, whether you are subject to any of them could depend on what week it is.
Caution: Even if you are immune from federal law because your company is too small, state law can come
into play.
Have your utility attorney refer you to local lawyers who specialize in each of the major workplace litigation
areas.
Look now for attorneys who specialize in discrimination cases in your jurisdiction and who are active enough
to keep current on all developments. Then -- get briefed on the law as it applies to your business.
IF YOU ARE SUED
As soon as your attorney is fully briefed on the case against you, ask him: "How much will this cost me a
month? How much will this cost me altogether? Can we work out a budget that keeps the costs down?"
Beware: A firm that refuses to lay out a budget for you either doesn't know what it is doing or has a history of
piling up huge bills for other clients. Either way, that's not a firm you want working for you.
Once you have agreed to the budget, don't just assume it will be continuously met.
Monitor fees each month. If a bill is higher than you expected, phone the lawyer immediately to ask for an
explanation.
If you don't complain, the lawyer will assume you can live with the bill... and the high charges will most likely
continue.
SEEK A SETTLEMENT
The longer a case runs, the higher your legal fees. In many business litigation cases, it makes financial
sense to settle quickly.
If there is no convincing reason for a failure to settle the case in a timely manner, request a face-to-face
meeting with the other party.
There's no restriction on the two sides meeting in a negotiating session outside the courtroom. See if you
can resolve the matter without further costly litigation.
Alternative: If the case is dragging on too long and your attorney's explanation for the delay doesn't satisfy you,
consider consulting another attorney.
Brief the second attorney on the highlights of the case with the basic documents and perhaps a letter from
your original attorney advising a particular course of action. That should be enough for him to say, "This looks
about right," or, "Hey, this just doesn't seem right."
The cost of obtaining a second opinion could be more than made up by resolving a case that otherwise could
have accumulated huge legal fees or even wrecked your business.
