Using Contract Lawyers to Increase Productivity

• Publication year: 2000
• Pages: 67
• Citation: Vol. 29 No. 3 Pg. 67

29 Colo.Law. 67 Colorado Lawyer 2000.

2000, March, Pg. 67. Using Contract Lawyers to Increase Productivity

---

67

Vol. 29, No. 3, Pg. 67

The Colorado Lawyer
March 2000
Vol. 29, No. 3 [Page 67]

Specialty Law Columns
Law Practice Management
Using Contract Lawyers to Increase Productivity
by Carole Jeffery

Each month, The Colorado Lawyer chronicles changes in Colorado law firms (that is, when they are created, merged restructured, downsized, or dissolved). In a profession previously known for stability and tradition, change has become the order of the day. In addition to the movement of associates and partners between firms, another trend in law firm staffing that is also taking place is the use of "temporary" or "contract" lawyers to augment regular staff. This phenomenon has arisen because of increasing pressures on law firms to control costs, the desire of many firms and individuals for flexible work hours and advances in technology that allow attorneys to work in non-traditional settings

In this article, the terms "contract lawyer" and "temporary lawyer" refer to an attorney who is engaged by a law firm for a limited purpose or time period, either directly or through an attorney placement agency. The term does not apply to attorneys who are part-time employees of a law firm or who work full-time for one firm with no expectation of, or intention to, accept permanent employment.1 More often, firms are using contract employees to meet client needs without increasing overhead. This ability to control overhead while providing additional expertise and manpower lets firms generate reasonable profits without having to raise legal fees and client costs.

Who Should Use a Contract Lawyer?

Firms of all sizes can benefit from using contract lawyers. These lawyers can provide firms with technical expertise and manpower when additional help is needed. The key phrase here is "when . . . needed." Although attorneys may find themselves so busy from time to time that they need additional help, the high volume or short deadlines that provoke the need may be only temporary. Similarly, a firm may be in a growth mode, but may lack the work to hire an additional permanent attorney. In both cases, the firm may find that hiring a contract lawyer is the answer.

What are the advantages of using contract lawyers? First, firms only need to pay contract lawyers when they provide services; when the work is done, so is the contract lawyer. Second, firms do not need to provide contract lawyers (who are independent contractors) with employee benefits or withhold taxes from their fees, which reduces the direct out-of-pocket costs of providing legal services to clients. Third, firms do not need to incur additional overhead expenses to support the work of contract lawyers. Contract lawyers frequently have their own facilities, computers, fax machines, copiers, and teleconferencing and computerized legal research capabilities. Many contract attorneys also provide their own legal malpractice insurance.2 Finally, using contract lawyers lets firms hire attorneys who have the special expertise or training necessary for a specific project, instead of merely "making do" with whomever is available and already on staff.

Traditionally, contract lawyers were primarily inexperienced attorneys who could do little more than legal research. Today, contract lawyers provide all levels of experience and expertise. For example, firms can hire contract lawyers to do everything from drafting contracts to analyzing, strategizing, and helping to try lawsuits. Firms also can hire contract lawyers to perform due diligence, draft pleadings, and deal with discovery and jury instructions. Indeed, it is only the flexibility of the firm and the imagination of its attorneys that limit the scope of what contract lawyers can do for a law firm needing additional and immediate skilled legal help.

Ethical Issues

Contract lawyers can provide many uses and benefits to law firms. However, when analyzing whether, when, and how to use contract lawyers, law firms should consider two significant related ethical issues: (1) vicarious disqualification and (2) fee-splitting and disclosure. The analysis and resolution of these issues became much easier in May 1999 when the CBA Ethics Committee...