Flat-fee contract for law firm debunking myths

The Chicago Tribune reports:

Fixed-fee arrangements between lawyers and their corporate clients are gaining popularity, but are they economical for both sides?

For Lake Forest-based Brunswick Corp., its flat-fee contract for national litigation has exceeded expectations, said Kristin Coleman, general counsel. The maker of boats, billiard tables, and fitness and bowling equipment cut the amount it spent on outside lawyers working on litigation by 30 percent in 2009.

On the flip side, David Rammelt, a partner at K&L Gates, said the volume of work he did for Brunswick last year quadrupled, a positive outcome in a year that was slow for many lawyers. But Rammelt had to switch law firms to make the arrangement more profitable.

Coleman and Rammelt's flat-fee contract is in its second year and includes product-liability and breach-of-warranty cases. Their experience provides some lessons to other lawyers and companies considering alternatives to the industry standard of billing clients at an hourly rate.