Fee Arrangements

A general counsel recently asked Tom Wallerstein, “Why should my company risk hiring a lesser-known, small firm?” Tom told him that it shouldn’t. Tom doesn’t think any company should unnecessarily “risk” its business without good reason. Tom will be the first to admit that there are some matters that simply demand big firm attention. But Tom also told the GC that there were many matters that he thought his smaller firm could handle just as well as could a big firm....

When Tom Wallerstein started his firm, several mentors gave him the same advice: Don’t work for free. It’s easy to see the problem with working for free. Giving away what you’re trying to sell isn’t exactly in the business plan. Unfortunately, this sage advice can only really be learned the hard way, through experience. Even if your gut tells you that taking on that client is a bad idea, this can be surprisingly tempting to a new firm or solo practice....