The legal profession is increasingly used to being seen as a monopoly.
But a new report from the Federation of Professional Law Firms says that while the profession is used to this, the way lawyers are being paid is a growing problem.
In a new survey of over 600 lawyers, it found that nearly one-third of them have had to seek to recoup money for legal work they did not actually perform.
This figure is even higher for the financial lawyer who is paid more than $100,000 a year.
This is partly because many financial lawyers are still using the same fee-for-service model, where lawyers are charged for their work, but they do not have to deliver it.
But the real problem is the rise of the ‘cost-of-doing-business’ model, in which the firm charges fees for the work that they do, rather than for what they deliver.
This is often seen as unfair because it means that the fees are often used to cover costs for lawyers, which is not a good thing.
“The problem is we have a situation where the legal profession has a very limited set of tools to manage the growing cost of doing business,” said Simon Wood, head of legal practice at law firm Perkins.
“In the US alone, there are over 4,000 law firms and we’ve got the highest rate of costs in the world.”
He added: “When you are in a position where you can’t charge more than what you have to, that’s the issue.”
There’s a huge amount of money being invested in these small firms, but if they don’t deliver, it’s not going to be returned to you.
“In a report published by the Federation, more than half of lawyers surveyed said that they had had to recuperate money for their legal work, while a further 20% said they had recouped money for work done elsewhere, including a debt collection firm.
It also found that some of these firms had been fined, and had had legal fees paid back.
Some of these legal firms were also seen as having a significant risk of falling under the purview of the new ‘cost of doing-business model’, in which firms are charged fees for their services and are only required to deliver those services.
The Federation of Legal Professionals says this model is a threat to the profession.
It says: “The ‘cost” of doing legal work is a way of making money from your client, who can then make more money if they can take their clients on a trip or a weekend.”
The risk is that if you’re a big firm, the risk is you could end up with clients who say, ‘No, I’ve just given you the money, and now I don’t need you’.
“The Federation has launched a petition calling on the Federal Government to impose a new fee-based system for lawyers.
What we need is to have a transparent system to track what they are doing, how much they are earning, and how much the fees that they are charged have been recovered,” said Mr Wood.””
We’re talking about legal professionals in this country who do a very important, important job.
What we need is to have a transparent system to track what they are doing, how much they are earning, and how much the fees that they are charged have been recovered,” said Mr Wood.”
That’s what we need.
We need to be able to tell the whole story of what is going on.”
Mr Wood, who is also a member of the Law Society of NSW, said that if the Federation had its way, he would like to see a system that did not require the lawyer to go into the courts to recue money.
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