Is "pay-as-you-go" fee arrangement an innovative way for small law firms to provide legal representation?

Law is business. Small law firms need to be creative and flexible to survive. Billing arrangements must work for lawyers and their clients.

One option is to pay an attorney on an a la carte basis. Clients only pay for the specific legal services that they can afford. This way, clients that can't afford standard legal fees of nearly $300 per hour, will still get legal representation.

Tarascio & Del Vecchio in Mesa, Arizona, uses this pay-as-you-go business model. Clients don't have to pay a retainer fee and are charged between $99 and $129 hourly for out-of-court services. The firm is still figuring out how to make the new model work. Since it does not have a shortage of clients, the law partners are confident that the approach will catch on.

The firm labeled their business model “limited-scope representation”.

"I've worked in various family law firms, and the traditional model didn't work. It didn't work for me or my clients," law firm partner Tarascio said. "Basically, anyone who is not wealthy can't afford it ... I figured, let's lower the rate, and I'll do pay as you go. I began customizing what I was doing for clients."

The American Bar Association and Arizona Supreme Court support limited-scope as an option for those who cannot afford full legal representation. "(A client may) need help with a particular problem, but just need someone to consult with - how to handle a particular item, like an explanation on what a motion for summary judgment means and how they should respond to it - and don't necessarily need total representation," said Patricia Sallen, director of special services and ethics for the State Bar of Arizona. However, she warns that limited-scope representation has to be reasonable.

A new trend? Or a passing fad? You decide....