find the latest legal job
Academic Dean and Head of School of the TC Beirne School of Law
Category: Other | Location: Brisbane QLD 4000
· An outstanding opportunity · Provide educational, research and organisational leadership
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: Arncliffe NSW 2205
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: All Sydney NSW
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: Sydney NSW 2000
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
4+ PAE Commercial Lawyer - Contract Role (Maternity cover)
Category: Corporate and Commercial Law | Location: All Sydney NSW
· 4+ years PAE · End-to-end deal carriage
View details
High fees alright, if there is value

High fees alright, if there is value

A FORMER top-tier managing partner has condemned recent reports about major banks looking for ways to lower the costs of legal services provided by external law firms, for their absence of the…

A FORMER top-tier managing partner has condemned recent reports about major banks looking for ways to lower the costs of legal services provided by external law firms, for their absence of the concept of value.

Former managing partner at Freehills, Paul Montgomery said reports about the approach being taken by corporate counsel from major banks to managing law firm relationships are minus the concept of value. In a letter to the Australian Financial Review, Montgomery said law firms need to respond to this reported trend by engaging their banking clients in a discussion about what good value is.

“There is nothing wrong with high fees, provided there is a commensurate level of benefit,” said Montgomery, who is now the faculty head of the Centre for Professional Services Management.

“If a corporate counsel received a high level of benefit for a reasonable cost, they might conclude they made a good purchase, or even a bargain purchase,” he said.

He made a distinction between behaviourally loyal and attitudinally loyal clients. The former, he said, may continue to use the law firm, but are looking for a better deal elsewhere, without seeking to improve and deepen the relationship. Comments about legal costs that do address the issue of value suggest that clients are behaviourally loyal, he said. “Law firms should be concerned.”

Attitudinally loyal clients, on the other hand, would work on the relationship because they derive value from it. “They would make positive comments only about their legal service providers in the public domain,” Montgomery said. It is necessary to achieve a close working relationship that accommodates the supply of value and gives a law firms a fair return, he said.

“Talk of one party holding power, while reflecting the economic reality, does not help create an appropriate environment,” he said.

Like this story? Read more:

Book commemorates diamond milestone for WA law society

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

High fees alright, if there is value
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Warning
Jan 18 2018
Lawyer highlights ‘unintended consequences’ on SSM estate planning
A succession lawyer has warned that the right for same-sex couples to legally marry could have a sub...
drug rehabilitation services available in rural and remote communities
Jan 18 2018
ALS survey shines spotlight on insufficient rehabilitation services
A new survey posted by the Aboriginal Legal Service (NSW/ACT) has revealed an alarming insight into ...
Scales of Justice
Jan 17 2018
Lawyers lash out over latest Dutton attack
A number of legal bodies have condemned federal home affairs minister Peter Dutton’s latest commen...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...