Ed. note: This is the latest installment of The Legal Tech-to-English Dictionary, part of our Non-Event for Tech-Perplexed Lawyers. Jared Correia is the host of the Non-Eventcast.
There’s a term for when attorneys use Latin and other arcane languages to describe legal processes to consumers: “legalese.”
But there’s no similar term for when vendors use technical and other arcane languages to describe their legal software operations to lawyers.
True, this dynamic may seem unfair. But now we have The Legal Tech-to-English Dictionary to help us cope.
Read on for the latest installment, where we translate time, billing, and payment software-related topics to plain English.
.1
1. Law firm billing nomenclature indicating a 6-minute increment = 1/10th of an hour. Because, weirdly, lawyers actually bill like this.
2. 6 minutes.
3. Something lawyers add to their invoices to confuse clients.
Husband: I just got this bill from the law firm. What does ‘.1’ mean?
Wife: 1/10th?
Husband: Oh, okay. So, 1/10th of an hour?
Wife: Right.
Husband: Okay. $75 for every 6 minutes equals . . .
Wife: $750 per hour?
Husband: &%^$$%@&*%$*&
Cf. Because this is how your clients see you.
Prebill
1. A process by which staff and attorneys review invoices prior to finalizing and sending same to clients.
2. The edited versions of an invoice used prior to the finalized version.
Lawyer 1: How’s the prebill coming along?
Legal Assistant 1: I haven’t gotten it from you in the mail yet.
Lawyer 1: . . .
Legal Assistant 1: Did you mail it yet?
Lawyer 1: . . .
Legal Assistant 1: It wouldn’t happen to still be on your desk right now, would it?
Lawyer 1: . . .
Lawyer 1: Um, sorry, my line is cutting out.
Cf. Time and billing softwares allow law firms to manage the prebill process electronically, via system features that can accommodate draft invoice edits, commenting tools, and restricted access criteria.
ePayments
1. Payment options available in an entirely electronic format, including credit and debit cards, ACH and eCheck.
2. You’re gonna make me say Dogecoin, too?
3. And, NFTs? Have you no soul?
Lawyer 1: We’ve got a client outside who wants to pay us by giving us a “non-fungible token.” Apparently, it’s an image of a piece of oatmeal that he colored bright orange and placed on the tip of a beautiful CGI-rendered unicorn horn.
Lawyer 2: . . .
Lawyer 1: I’ll just ask him for a check.
Alternative Fee Arrangement
1. Any law firm payment option that is not an hourly billing arrangement.
2. Yes, lawyers are this dedicated to the hourly billing model.
Lawyer 1: Can we talk about adding some alternative pricing models?
Lawyer 2: We could . . . charge for every 3 minutes we work, instead of every 6?
Lawyer 1: That’s not exactly what I had in mind.
Cf. Since literally everything other than hourly billing rates are viewed as “alternative” fee arrangements, those alternative options are endless, including flat fees, evergreen retainers (client reups retainer amount on monthly basis), risk collars (lawyer goes over a predicted fee amount, client gets a discounted rate; under, lawyer gets a success fee), subscription fees, and products.
Accounts Receivable
1. Uncollected billing, often reported on by the length of time the items have been in arrears, e.g., 30-, 60-, 90-days late.
Bookkeeper 1: Our accounts receivable report indicates that we have $225,000 that is more than 90 days overdue.
Lawyer 1: When was the last time we sent out invoices?
Bookkeeper 1: 6 months ago.
Lawyer 1: Well, shit.
Bookkeeper 1: I believe you’ve cracked the case, Mr. Holmes.
Cf. What happens when you collect your A/R.
Cf. ePayments – Collect automated payments by credit card, and you won’t have any A/R.
Jared Correia, a consultant and legal technology expert, is the host of the Non-Eventcast, the featured podcast of the Above the Law Non-Event for Tech-Perplexed Lawyers.
