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HOME Line’s CLE Webinar Series: Second Annual Full Ethics and Elimination of Bias Training - Not Just for Public Interest Attorneys • Wednesday, May 23rd, 2012 • 9:00am – 2:20pm 5-hour CLE webinar fulfills: 3 CLE credits of Ethics & 2 CLE credits of Elimination of Bias.
1st Hour: Unbundled Services: Pros, Cons, & Ethical Implications by Randall Ryder We’ll be starting shortly… Tech troubles or other issues? Contact Deb @ 612-728-5770 x109 Or email:
[email protected]
A Quick Intro to the Webinar • Relevant materials were emailed in advance. Didn’t receive it? Email
[email protected] • Q & A: – Chat box at bottom left, hit send & we’ll receive it – We will try to answer questions during each presentation as appropriate, and will have time at the end for additional questions. • Tech troubles or other issues? – Call Deb @ 612-728-5770 x109 or email
[email protected]
Unbundled Services: Pros, Cons, & Ethical Implications —Randall Ryder, The Ryder Law Firm • Wednesday, May 23rd, 2012 • 9:00am – 10:00am
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Unbundled Legal Services
Pros, Cons, and Ethical Implications Randall Ryder The Ryder Law Firm, LLC
Unbundled and My Practice
Represent consumers against abusive debt collectors
(contingent)
Defend consumers in debt collection lawsuits
(not contingent)
Majority of representation = unbundled
Unbundled and My Practice Why it works for my practice
Clients in debt, cannot afford full representation Don't need full representation – need advice to resolve on their own
Consultation
Answer discovery requests
Want to resolve on own – take ownership
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Unbundled and Your Practice
Bankruptcy, housing, divorce are big areas of the pro se issue
67-92% of cases involve at least one pro se party
Legal service providers are underfunded
Individuals cannot afford full representation
Unbundled and Your Practice
Research on unbundling = inconclusive
My hypothesis: meeting with an attorney will make the client more satisfied in the end
Some areas appears to work better than others
Note: does not guarantee actual better results, but a more satisfied client
Abundance of attorneys and clients who shop around = need alternative fee structures
Savvy clients
What are Unbundled Services
Piece of the pie – not the whole pie
Not full representation
(No “up to, but not including trial”)
Examples:
Draft answer
Draft discovery responses
Negotiate settlement + finalize agreement
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Advantage for Clients
Pro se = time consuming and more “costly” in the end Full service = costly and can end up costing client more in the end Unbundled = lower price and clients can still handle on their own (cheaper)
Advantage for Clients
Clients happy if they can resolve on their own
(99% of cases don't go to trial)
If clients try on their own, but are unsuccessful, they will be even happier to hire you And only if “necessary” in their mind
Clients gain better understanding (and hopefully appreciation) of the legal process
Might even have more respect for attorneys
Advantage for Attorneys
Limited exposure (get in and get out)
Note: bad handling of unbundled can arguably create more exposure More on this later
Clients are not angry (or less angry) about fees
One less case on your plate
Less time consuming and can leverage time
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Problem Areas
Poorly written retainer (scope unclear) Clients who continue to think you represent them Opposing counsel/court thinks you are doing full service representation Clients who continue to call you for legal advice after you have closed file Good news: most are easily avoidable
What to Unbundle
Forms and documents
Rinse, repeat, repeat
Answer, discovery requests, pleadings
Things you already did that are easy to change
Things that you can predict time involved
Discovery responses (same practice area) Negotiate settlement in same practice area
What Not to Unbundle
Something you have never done before
Recipe for disaster
100% guarantee you underestimaed
Something similar to previous task
Similar does not mean the same
Small changes can make a big difference
Anything that you cannot predict time involved
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What Not to Unbundle
Be careful with litigation Can create prejudice to your client if you have to withdraw Make sure there is enough time to withdraw without causing that issue Example: trying to negotiate a settlement when SJ response due at end of week
Yikes
Logistics: How to Unbundle
MN Rule PR 1.5: Fees
Step 1: define task/scope of representation
MN R. PR. 1.5(b)(1)(i)
“draft/prepare answer for client to sign and serve”
Be specific
Don’t do: assist client in family law matter
might want to include: “this does NOT include . . .”
What does that mean?
Logistics: How to Unbundle
Step 2: set a price
MN R. PR. 1.5(b)(1)(ii)
“the fee is ____ and due upon signing this agreement” Note: always get paid up front
Make that your rule and do not deviate
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Logistics: How to Unbundle
Step 3: not held in trust account
“the fee will not be held in a trust account”
MN R. PR. 1.5(b)(1)(iii)
Logistics: How to Unbundle
Step 4: client has right to terminate + refund
MN R. PR. 1.5(b)(1)(iv) + (v)
MN R. PR. 1.5(b)(3)
“You may terminate this representation at any time. If you do, you will be entitled to a refund of all or a portion of the fee if the above legal services are not provided.” If you are unbundling services properly, this is unlikely to be an issue
Most of my services are done in one meeting
Logistics: How to Unbundle
Step 5: close file and terminate representation
Arguably most important element
Send a letter/e-mail with recap of what was done, next steps, and indicate you are terminating representation Even if you meet with them in person, this extra five minutes is critical
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Logistics: How to Unbundle
Five steps
All easy and almost all in your retainer
Must close the file
How to Determine Price
Start with time
Good approximation
But time does not always equal value
Remember your client base
Does it seem reasonable to you?
You will have to explain it often
Very likely that you will modify the price after a few clients
Unbundled Appearances
Proceed with caution
Step 1: get permission from the court
Step 2: appear
Step 3: immediately withdrawal after hearing
Bring notice of withdrawal with you
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Things to Remember
Focus on big picture
You will not get rich from one unbundled service
But can provide steady stream of clients
Less hassle
Nice source of cash flow
Focus on forms
Predictable and easy to use (re-use)
Disclosing Involvement
Not same thing as representation for litigation purposes
Do not need to disclose your involvement
Unless “really” involved
Example: ghostwriting brief May want to contact local ethics expect if you are concerned about “really” involved
Other Ethical Issues
Keep track of changes to rules
For example: some of the language in MN Rule PR 1.5 was just recently changed
Be sure you are not prejudicing your client by “unbundling”
MN Rule PR 1.16(b)(1)
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Recap
Good for attorney and good for clients
Follow the five steps
Focus on forms and avoid unknown tasks
And re-read the rules of PR frequently
Always close the file and terminate representaton
Unbundled Services: Pros, Cons, & Ethical Implications —Randall Ryder, The Ryder Law Firm • Wednesday, May 23rd, 2012 • 9:00am – 10:00am
Q&A
Thank you for joining us! We have several CLE webinars scheduled in the near future: • Tuesday, 6/5/12, noon-1pm: 1 credit CLE Webinar: “Introduction to Landlord Foreclosures: What Landlord and Tenant Attorneys Should Know” by HOME Line housing attorney Matt Eichenlaub • Today’s 5-credit CLE Webinar (3 Ethics credits & 2 Elimination of Bias) will be rebroadcasted 3 times: – Tuesday June 19 (5pm-9:20pm), Thursday June 28 (9am-2:20pm), and Wednesday July 18 (9am-2:20pm)
Register online: www.homelinemn.org/cle
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Tenant/Landlord Law Resource Book If you enjoyed today’s CLE, you may find HOME Line’s book on Minnesota tenant/landlord law useful. HOME Line wrote How to Be the Smartest Renter on Your Block to help renters find, get and keep rental housing. This book is based on the real-life concerns we hear from thousands of callers to our tenant hotline. It gives the best ways to handle and avoid the most common rental problems. A great resource for attorneys who occasionally hear questions about housing and tenant/landlord law. Cost: Paperback $20 (plus taxes and shipping) Also available as a digital e-book for $9.99
200+ pages outlining practical advice: • • • • • • • • • • • • • • • • • • • • •
Shopping for an Apartment Applying for an Apartment Housing Discrimination Understanding Leases Neighbors & Roommates Privacy Violations Repairs Retaliation Ending a Lease Rent Increases Evictions Lockouts & Utility Shutoffs Security Deposits Abandoned Property Landlord Foreclosures Manufactured (Mobile) Homes Subsidized Housing Caretakers & Other Employees of the Landlord Renters Credit (CRP) Tenant Organizing Form letters & other resources
www.homelinemn.org/book
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