Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Managing Legal Fees in Light of COVID-19 Starts With a Good Strategy

Author: Robert E. Levy

Date: July 2, 2020

Key Contacts

Back

COVID-19 has forced businesses to adapt to rapidly-evolving operating conditions and even establish new business models…

COVID-19 has forced businesses to adapt to rapidly-evolving operating conditions and even establish new business models. Amidst these changes, legal departments have been called on to monitor continually changing regulatory requirements and devise new compliance plans.

Managing Legal Fees in Light of COVID-19 Starts With a Good Strategy

Of course, many businesses are also dealing with reduced revenues and other financial uncertainties. To avoid reducing legal capabilities during a time when they are needed the most, businesses are understandably looking at cost optimization.

As with any business endeavor, strategically reducing legal costs requires a carefully crafted and well-executed plan. Below are a few considerations:

  • Engage stakeholders: To ensure that your strategy optimizes legal costs while also meeting the company’s overall business goals, it is imperative to involve legal staff from all departments as well as stakeholders from other key functions (i.e. finance, compliance, and human resources). Getting input early in the process can also help ensure that the strategy can be implemented successfully across the business and that staff is invested in the overall success of the plan.
  • Identify Areas to Target: Businesses should identify areas where costs can be eliminated, reduced, or otherwise reevaluated. The key is differentiating between “good” costs (those that can ultimately help fuel profit and growth) and “bad” costs (those deemed non-essential or inefficient). Obviously, the so-called bad costs should be targeted first.
  • Look for Ways to Increase Efficiency: Minor changes rarely achieve significant cost reductions. While it is more challenging to implement large-scale strategic changes, they often reap more sizable benefits. Options include consolidating outside firms, exploring alternative fee arrangements, setting litigation budgets, retaining specialized legal providers, standardizing/streamlining legal processes, investing in technology, and auditing legal fees.
  • Don’t Focus Exclusively on Cutting Costs: Cost optimization isn’t about simply cutting costs. When devising your strategy, it is also important to evaluate the risk to legal service delivery and the impact on long-term goals. Another point to consider is the time and resource investment required to make the proposed changes vs. maintaining status quo.
  • Communicate Your Plan: Once you establish your strategy, it is imperative to communicate it to your legal team, including outside counsel. While it may be uncomfortable to question the fees and billing procedures of legal providers, most are cognizant of the strain COVID-19 is placing on businesses and should be willing to adjust their fee arrangements.
  • Monitor the Progress of Your Plan: Senior management must work to set direction and maintain course, particularly when making tough decisions. Going forward, the effectiveness of legal cost reduction strategies should be regularly reviewed and updated. Staff should also feel empowered to look for additional opportunities to improve cost-effectiveness.  

Scarinci Hollenbeck takes pride in delivering cost-effective legal solutions to businesses of all sizes. As we all work to adapt to the “new normal” brought on by COVID-19, we welcome the opportunity to discuss how we can help your business tailor your legal services to your current needs and budget.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Bob Levy, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
How Understanding Bankruptcy Trends Can Benefit Your Business post image

How Understanding Bankruptcy Trends Can Benefit Your Business

The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]

Author: Brian D. Spector

Link to post with title - "How Understanding Bankruptcy Trends Can Benefit Your Business"
SEC Takes Actions Against Issuers for Failure to File Form D post image

SEC Takes Actions Against Issuers for Failure to File Form D

In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]

Author: Kenneth C. Oh

Link to post with title - "SEC Takes Actions Against Issuers for Failure to File Form D"
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda post image

Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda

On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]

Author: Matthew F. Mimnaugh

Link to post with title - "Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda"
What Are FIRPTA Withholding Requirements? post image

What Are FIRPTA Withholding Requirements?

If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]

Author: Jesse M. Dimitro

Link to post with title - "What Are FIRPTA Withholding Requirements?"
Does Your Homeowners Insurance Provide Adequate Coverage? post image

Does Your Homeowners Insurance Provide Adequate Coverage?

Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]

Author: Jesse M. Dimitro

Link to post with title - "Does Your Homeowners Insurance Provide Adequate Coverage?"
Understanding the Importance of a Non-Contingent Offer post image

Understanding the Importance of a Non-Contingent Offer

Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]

Author: Jesse M. Dimitro

Link to post with title - "Understanding the Importance of a Non-Contingent Offer"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: