Do these situations sound familiar? Do they make business sense? Or do they make any sense at all?

Do you sometimes feel that every matter in a lawsuit is "overlawyered"? Overdone? Do you feel that you are paying for overkill?

Are F-16s used to hunt down rabbits?

Yes, there may be cases wherein the actual costs may not be a primary consideration (like "bet-the-company" cases), or may not be approximated from the beginning.

But what about the lawsuits ordinarily faced by companies, particularly collection suits below P500,000.00 and minuscule claims (below P100,000.00)? Is it wise to spend on legal costs an amount equal to the claim?

The primary reason for the unusually high cost is that law firms bill by the hour.

One of the criticisms of the billable hour is that it encourages inefficiency. More often than not, lawyers who bill by the hour have to meet a firm-imposed minimum number of billable hours a year. To meet this quota, these lawyers try to rack up as many hours as possible. In a desire to accumulate hours, lawyers make no effort to maximize the hours and/or to increase their productivity. There is no incentive for efficiency.

In the end, the client suffers. Yes, legal costs may be a tax-deductible expense. But in times of scarce resources, expenses should have business sense. Spending more than, or close to, the amount of the claim does not make business sense.

Companies may want to consider alternative fee arrangements, and say sayonara to the billable hour. Arrangements which induce lawyers to be more productive and efficient.

The Velicaria Egenias Law Firm is open to fee arrangements other than the traditional hourly billing method. Before any legal service is commenced, the billing method appropriate to the task as well as a cost estimate will be discussed with the client first.

The Law Firm regularly apprises the client of the status of every legal matter. Each client is made aware of the legal issues involved and the options available. The Law Firm will not hesitate to advise settlement if in its evaluation settling is the only viable option.