The alternative fee arrangement is underused in the legal industry, despite regular predictions that its usage will increase. This is especially true during times of economic strife when corporations are most cost-sensitive. Will the current downturn flip the script on this, resulting in AFAs being the norm? As the legal industry increasingly turns to business practices, the answer may finally be yes.
According to Bloomberg Law’s 2020 Legal Operations Survey, AFAs are more commonly used by larger law firms (those with more than 100 practicing attorneys) than smaller ones. But even larger firms tend not to rely on AFAs for ...