Frequently Asked Questions re the Flat Fee

1. Does the legal work get done?

While the answer to this question would seem obvious, the concern which underlies the question is that a file will be opened and promptly forgotten until the time of trial. At the heart of this question lies the truth that the attorney/client relationship is a unique one and can only survive in an atmosphere of mutual trust. If this was not the case, how would you value our counsel? If you trust and value us, it must be assumed that we have enough integrity to perform the necessary work in a timely and competent fashion.

The fact is that we care too much about the clients, ourselves and our reputations to operate in any other fashion.  

2. Will Medical discovery be accomplished?

Yes, medical/physician depositions will be undertaken where necessary. The goal is to avoid the substitution of discovery for thought.

3. What type of case cannot be apporpiately handled under this system?

In general the flat fee system is not feasible in cases which involve complex legal or medical issues, such as medical or legal malpractice cases and most product liability cases. 

4. Can the system be used in the various municipal districts?

Since this type of case tends to move towards resolution rather quickly, the flat fee system is ideal for cases pending in these venues.

5. What about cases where the exposure is high?

Absolutely. The threshold question is one of location, complexity and proper service to you and the insured, not case value.

6. Does the firm require a large volume of cases, or a commitment for a certain minimum number of cases per year or month before defense cases are acdepted on a fixed fee basis?

No. Our system does not require an insurance carrier to commit to assignment of a certain number of files or require a certain minimum yearly fee. Neither do we require that you commit "all" your defense work/files to this firm. We do believe that you will appreciate the system after you use it. We do suggest that you will be more able to judge the benefits of the system if you assign  us more then just a handful of cases.

7. Do you ever 'switch' a case from a fixed fee case to that of a standard hourly fee basis?

Yes. We have on occasion over the last several years changed the fee basis from a flat fee basis to the traditional hourly fee basis. This was usually done at the request of the client and resulted from unanticipated and extreme circumstances which arose over the course of the litigation.

This is a legitimate system for the cost-efficient defense of lawsuits and is not viewed as a "loss leader" - a plan to get work in the office and then change the fee system. For this reason, to maintain the integrity of the system, we tend to resist changing the fee schedule in the midst of litigation. Ultimately, however, service to your defense needs and mutual trust between you and the firm are of paramont importance.   

8. Why should I retain your firm when we already have in-house counsel?

We feel that this system permits us to handle cases more economically, more responsively and with more flexibility than  the in-house counsel. Still, even if you are committed to in house counsel, as are several of our present insurance clients, you must agree that they cannot handle every case filed - conflicts or coverage disputes for example. Some of our largest insurance clients have in-house counsel and use them extensively, but not exclusively.  

9. Will you only handle cases on the fixed fee basis?

No. Although this is our most popular billing procedure, we also employ other billing procedures where advantageous and we can also bill on the traditional hourly fee basis. Your inquiries along these lines are welcome.

The emphasis has to be on your needs. What are you most comfortable with? How can we service your needs and provide the best cost-efficient ethical and competent defense for your assureds?

Please feel free to contact me with any questions:

Arthur J. Murphy

312-427-3650

arthurmurphy@murphyandsmith.net