UPDATE: This seminar occurred in the past, and the seminar materials are now available. You can use the LESA Library to access course materials or purchase course materials a la carte. Alternatively, you can view the complete list of upcoming seminars to discover live programs that are available now.
Unbundling, also known as limited scope retainers, has recently become a hot topic in the legal community. With these types of retainers, lawyers provide representation for only part of a legal matter without the expectation that the client will receive full-service representation.
At the upcoming third annual Law and Practice Update on November 1 and 2, Ed Gallagher, Partner at Patriot Law Group, and Nancy Carruthers, Practice Advisor at the Law Society of Alberta, will be co-presenters of the Unbundling and Alternative Fee Arrangement session. Ed will focus on the practice issues of limited scope retainers while Nancy will share information about the ethical issues.
Limited Scope Retainers
What are the advantages of using limited scope retainers? Clients appreciate them because they feel like they have more control over their legal costs. In some cases, a party may not even want a lawyer, but may need some assistance along the way. Limited scope retainers allow them to obtain assistance from a lawyer when they want it.
While many lawyers may have already been providing legal services pursuant to limited scope retainers, some lawyers are more inclined to see the risk involved, especially if they don’t feel comfortable that they have enough information about client’s matter to provide advice.
“’How do I avoid liability?” is a question Nancy often hears. “Lawyers feel that if they aren’t comfortable that all avenues are being addressed, then they don’t want to do it.”
For those who are successfully using limited scope retainers, Nancy believes they have “identified a particular preference of clients, and they’re catering to it. And it works for them because they know how to draw the boundaries around the scope of their retainers so that they feel comfortable in what they are doing and the client’s expectations are still being met.”
Federation’s Model Code
At the Law and Practice Update, Nancy plans to discuss recent changes to the Federation’s Model Code that it is hoped will be introduced in Alberta, but currently have not yet been adopted.
“The Federation has implemented some changes to address and encourage this whole concept of limited scope retainers, and it’s our hope that we will implement similar changes in our Code in Alberta. Those changes will be directed at the retainer and reminding people that they need to address the extent of the retainer very clearly in a retainer letter,” says Nancy.
The new Code includes guidelines for communicating with the opposing party directly on a matter that is outside the scope of the limited retainer with that party’s lawyer.
“One thing that people need to keep in mind is that you don’t owe a lesser level of service. You still have to provide correct advice, and you can’t cut corners on those things that you are retained to do, and that’s going to be highlighted as well,” says Nancy. “But other than that, it’s perhaps less of an ethical issue and more an issue of education and developing some practice standards around how retainers are drafted.”
Clearly, the Law and Practice Update will provide good insight into alternative fee agreements.
Find out about upcoming seminars and up-to-date information on all LESA’s live events at www.lesa.org
