Practical Advice from Harris County Family Court Judges

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1 advertisement July 29, vol. 29 No. 18 $9.00 w w w. t e x a s l a w y e r. c o m Practical Advice from Harris County Family Court Judges Editor s note: On June 6, the Texas Lawyer editorial department hosted a roundtable discussion in Houston, Domestic Relations: How to Make Your Case in Family Court. Panelists included 312th District Judge David Farr, 308th District Judge James Lombardino and 247th Associate Judge Meca Walker. This is the second part of the discussion. The judges discussion covered e-filing, morality clauses, courtroom security and their mediation policies. It has been edited for length and style. John Council, senior reporter, Texas Lawyer, Dallas: At the risk of opening up another can of worms, I want to ask you about electronic filing. Are there issues with electronic filing, problems with electronic filings, and how do lawyers avoid those problems? 247th Associate Judge Meca Walker, Houston: Well, I don t know how you all are avoiding the problems for the e-filing. I just have some service announcements on behalf of our clerks. This is a new process for all of us. We re all learning. If you see something, if you encounter something that you think needs to be addressed, you can talk to me, you can certainly talk to Judge Hellums. We might be interested hearing from you guys what your experience has been so far in the 247, but one of the things... [that] happens is the attorneys are filing the parenting certificates without putting see Roundtable, page 16 The Future of Fees Is Alternative Billing Becoming the Norm? Alternative, or non-hourly billing, is used by 89 percent or 82 of the 92 firms that responded to Texas Lawyer s Salary and Billing Survey. While the firms are balancing the risk and reward of alternative billing, 80 percent are also offering discount fees or rates to their clients. [See chart age of Firms Using Discounted or Alternative Billing Methods, below]. Discounting and alternative billing are not the sole purview of large firms charging $500 plus per hour. Small firms are also finding ways to use creative billing strategies and discount methods. Mark Graham Chris Joe, member in Buether Joe & Carpenter by JEANNE GRAHAM When patent and commercial litigation firm Buether Joe & Carpenter first opened its doors in February of 2010, the firm billed all its business Salary & Billing Survey by the hour. Now, three and a half years later, the Dallas firm only bills about 25 percent of its business by the hour, and has a goal of eliminating hourly-fees all together, says member Chris Joe. We have done flat fee deals, we ve done monthly set fees, we ve done partial hourly with a contingency kicker, Joe says. We re open to just about anything for our client. If you can think of it, we ve thought about it or we ve done it. see Is Alternative, page 20 age of Firms Using Discounted or Alternative- Billing Methods Discounted 61 Flat/Fixed Fees Contingent Fees Blended Fees 11 None Note: age sum exceeds 100 percent because most of the firms using alternative billing use more than one method. >>>> INSIDE >> >> >> >> Seven Texas firms top large deal stats 7 Asking the right questions can lead to success 30 Is your firm truly entrepreneurial? 31 advertisement Domestic Relations How to Make Your Case in Family Court Thursday, September 19, 8:00 to 10:00 a.m. PLANO

2 20 TEXAS LAWYER Is Alternative Billing Becoming the Norm? continued from page 1 We re certainly open to some discounting, it just depends on each case, Joe says. We do provide some volume discounting for long-time clients who send all their business to us. If we have a commitment to get business from the client, we will provide them with that deal. The firm has grown from its initial three lawyers to nine lawyers. Joe predicts a strong revenue Salary & Billing Survey increase for. We re halfway through the year and have already surpassed last year s gross revenues, he says. The firm doubled its revenue in 2012 compared to 2011 and is on track to double it again this year. Intellectual property and patent litigation firm Skiermont Puckett does almost no hourly billing. The firm was formed two years ago, in July 2011, by Paul Skiermont and Donald Puckett. Now the Dallas firm has ten lawyers. We have a couple of defenseside clients that do prefer hourly billing, says partner Skiermont. If a client is going to insist Paul Skiermont in paying by the hour, we are not at the point yet to insist on a particular form of payment. The boutique does both plaintiff and defense work, Skiermont says. Firm July 29, Alternative, or non-hourly billing, is used by 89 percent or 82 of the 92 firms that responded to Texas Lawyer s Salary and Billing Survey. We Set Out to Build a Force to be Reckoned with AZA 20 Years Later, Look Who We ve Become. AHMAD ZAVITSANOS ANAIPAKOS ALAVI MENSING AZA Tough Name. Tougher Opponent McKinney, Suite 3460 Houston, Texas azalaw.com fees have remained relatively constant since opening its doors. During its first few months, when the firm was trying to get established, it offered some discounting to build its customer base, he says. After the first six months or so, although every fee agreement is different, all are geared toward the same type of fee structure and amount for the firm, Skiermont says. The firm does no volume discounting, since it usually is handling just one matter per client, he says. Where Skiermont Puckett uses discounting is when the firm is negotiating a fee agreement with a client and determining the amount, or percentage of the fee, that will be held back and paid upon the firm s success. We try to put some of our skin in the game, so that when the client wins, or does better, we do better, he says. The firm expects revenue to exceed 2012 and is looking at adding one or two more lawyers this year, he says. For those firms using hourly billing rates, median increases in hourly rates for firms participating in the survey ranged from zero percent for first-year associates to 4 percent for fourth-year associates. [See chart Hourly Billing Rates page 22]. MacIntyre McCulloch Stanfield Young in Houston is an eight-lawyer boutique firm that is almost seven years old and handles probate, trusts and guardianships. The firm bills 90 to 95 percent of its business on an hourly basis, says partner Robert MacIntyre. Robert MacIntyre We have a couple of contingency cases, and we do some work on a flat fee, but not a lot. The firm might quote a client a flat fee for a package that includes wills, powers of attorney, medical powers of attorney, and other documents, he says. Each of the firm s partners decided whether to increase their hourly

3 July 29, rates for, he says. Rates that did increase were less than five percent, says MacIntyre. The firm discounts some business on individual cases where warranted or when working with banks and trust companies that administer trusts. We do a lot of work with a couple of banks and trust companies in town, MacIntyre says. In some cases, for example, the firm might discount its usual hourly fee by $50. Also, the firm will often respond, without charging, to questions by bank and trust officers, he says. MacIntyre predicts the firm s revenue will be greater than its 2012 revenue. He notes the firm is not opposed to alternative billing, but says it is just not requested by clients. I believe that every billing situation should be responsive or compatible with the circumstances of the dispute, he says. And so if it requires flexibility or creativity we are certainly amenable to that. Salary & Billing Survey Eighteen months ago, two-lawyer firm Glenn Adams and Associates in McKinney, began charging by the hour for its family law matters. Traditionally, the Lindsey Pruitt firm, which has been in business for about 20 years, charged all matters on a flat fee basis, says partner Lindsey Pruitt. The firm s business is half criminal defense law and half family law, she says. Pruitt says that the flat rates were too low for the work the firm was doing handling divorces, child custody cases and other family law matters. Although it s hard to predict the firm s annual revenue, the firm generated more revenue during the first six months of than it did during the same period in 2012, she says. With the criminal law matters we always just charge flat rates, depending on whether or not it goes to trial, she says. The firm will offer a discount, for example, if a client has several criminal cases and they can be bundled together, she says. Sometimes it s needs-based, she Survey Methodology Each year, Texas Lawyer tracks financial trends in the state s legal industry through its Salary & Billing Survey. The resulting report compiles information provided by firms of different sizes and practice areas across the state. The firms respond to questions about employees salaries, billing rates and billable hours. Due to variations in firms data-tracking, these results are not definitive, but they do provide valuable comparative information for firm managers and employees. Not all respondents answered each question. A minimum of three responses was required for every category of averaged data. The averages reported are median averages, meaning the data were arranged in ascending order with the midpoint reported in each category. Using the median number balances out survey responses that might be much higher or lower than what most of the firms reported. The numbers in the percent-change columns are rounded to the nearest tenth of a percent. TEXAS LAWYER 21 says. If somebody comes in, and they re on hard times, we ll give them a break. See related charts, pages The 92 firms that participated in this year s survey, which was conducted during June, have 8,363 lawyers with 5,167 of those lawyers in Texas. The survey results are reported by city and by firm size. The firms with lawyers outside Texas provided salaries and billing rates for their Texas offices. Firms are divided into four regional categories: Austin/San Antonio, Dallas/Fort Worth, Houston and other. For the 92 responding firms, the primary Texas locations are as follows: 10 are in Austin/San Antonio, 39 are in Dallas/Fort Worth, 25 are in Houston and 18 are in other cities. The size divisions are firms with 100-plus, 50 to 99, 30 to 49 and fewer than 30 lawyers. Of the 92 responding firms, 13 have more than 100 lawyers, 12 have lawyers, 24 have lawyers and 42 have fewer than 30 lawyers. The firm s responding to this year s survey also provided 2012 data. To be added to Texas Lawyer s survey list, contact research editor Jeanne Graham at jgraham@alm.com. presents Domestic Relations How to Make Your Case in Family Court Thursday, September 19, 8:00 a.m. to 10:00 a.m. Plano Centre 2000 E. Spring Creek Parkway - Plano, TX This CLE discussion, led by Texas Lawyer senior reporter John Council, will provide you with insight as Collin County judges share their perspectives on trial procedure, motion practice and how best to plead your client s case in family court. Texas Lawyer Subscribers: $50 Nonsubscribers: $60 After Sept. 13 th and at the door: $70 (Fee includes breakfast and 1.5 of approved CLE credit.) Visit or call for more information. Law Offices of Dana C. Palmer Thank you To our sponsors

4 22 TEXAS LAWYER July 29, Administrative Services Salaries Chief Administrator Office Manager Finance Director Personnel Director 2012 Survey Median Averages $150,000 $140, % $73,375 $70, % $110,000 $102, % $85,000 $83, % Median Averages by City Austin/San Antonio $152,000 $152, % $70,000 $65, % $97,044 $93, % $81,000 $78, % Dallas/Fort Worth $140,000 $130, % $71,750 $69, % $95,100 $91, % $86,400 $83, % Houston $175,000 $165, % $96,306 $91, % $115,000 $109, % $85,000 $96, % Other $113,673 $109, % $71,000 $66, % * * * $80,929 $79, % Median Averages by Firm Size 100+ lawyers $175,000 $165, % $71,750 $69, % $123,750 $121, % $100,000 $95, % lawyers $131,000 $131, % $82,000 $78, % $97,044 $93, % $82,000 $79, % lawyers $130,400 $128, % $75,000 $72, % $90,000 $83, % $63,300 $60, % <30 lawyers $96,500 $92, % $70,000 $65, % $70,000 $65, % $72,000 $69, % *Data not available Source: 92 firms Hourly Billing Rates Equity Partner Non-Equity Partner 7th-Year Associate Survey Median Averages $388 $ % $350 $ % $300 $ % Austin/San Antonio $353 $ % $355 $ % $295 $ % Dallas/Fort Worth $499 $ % $405 $ % $345 $ % Houston $388 $ % $348 $ % $300 $ % Other $299 $ % $224 $ % $175 $ % 100+ lawyers $558 $ % $463 $ % $392 $ % lawyers $430 $ % $340 $ % $325 $ % lawyers $370 $ % $353 $ % $241 $ % <30 lawyers $350 $ % $325 $ % $225 $ % 4th-Year Associate 1st-Year Associate Senior Legal Assistant Survey Median Averages $260 $ % $200 $ % $146 $ % Austin/San Antonio $245 $ % $200 $ % $150 $ % Dallas/Fort Worth $295 $ % $230 $ % $170 $ % Houston $260 $ % $200 $ % $125 $ % Other $203 $ % $160 $ % $65 $62 4.8% 100+ lawyers $337 $ % $265 $ % $210 $ % lawyers $245 $ % $200 $ % $150 $ % lawyers $251 $ % $175 $ % $130 $ % <30 lawyers $225 $ % $175 $ % $98 $95 2.6% Source: 92 firms Now Available! Texas CourThouse Guide: An indispensable reference for the country s third largest legal community. This is the only directory you ll need for vital contacts in the federal, state, district and county courts. By Land, Air, and Sea. We re There For You. Beirne, Maynard & Parsons counsels clients throughout the Gulf Coast, the United States, and the world. Our clients are leaders and innovators. They demand extensive trial experience, solid case preparation, and insightful strategic planning in their advocates. We research the information you seek: court coordinators, clerks, administrators, and more. AUSTIN DALLAS HOUSTON SAN ANTONIO BATON ROUGE NEW ORLEANS Call to order your copy today! Or shop online at Houston Office 1300 Post Oak Boulevard, Suite 2500 Houston, TX Main Number: Texas Courthouse Guide By Land, Air, and Sea. We re There For You. Texas Courthouse Guide Beirne, Maynard & Parsons counsels clients throughout the Gulf Coast, the United States, and the world. Our clients are leaders and innovators. They demand extensive trial experience, solid case preparation, and insightful strategic planning in their advocates. AUSTIN DALLAS HOUSTON SAN ANTONIO BATON ROUGE NEW ORLEANS advertisement Houston Office 1300 Post Oak Boulevard, Suite 2500 Houston, TX Main Number:

5 2012 ALM Properties, Inc. Texas Lawyer Books July 29, TEXAS LAWYER 23 Average Hours Billed Per Week Equity Partner Non-Equity Partner Associate Legal Assistant 2012 Survey Median Averages % % % % Austin/San Antonio % % % % Dallas/Fort Worth % % % % Houston % % % % Other % % % % 100+ lawyers % % % % lawyers % % % % lawyers % % % % <30 lawyers % % % % Source: 92 firms Support Staff Salaries Information Services Manager Librarian Marketing Director Survey Median Averages $93,200 $90, % $59,653 $59, % $95,000 $90, % Austin/San Antonio $95,270 $93, % $55,000 $52, % $107,520 $107, % Dallas/Fort Worth $87,860 $87, % $76,250 $74, % $97,000 $95, % Houston $95,000 $90, % $50,000 $48, % $90,250 $83, % Other $113,139 $109, % $30,000 $29, % * * * 100+ lawyers $101,818 $97, % $67,564 $65, % $116,985 $115, % lawyers $86,000 $86, % $53,339 $53, % $135,000 $135, % lawyers $90,000 $90, % $50,000 $48, % $67,300 $65, % <30 lawyers $76,600 $72, % $55,000 $52, % * * * * Data not available. A Must-Have Book for PI Litigators Strengthen your practice by adding Lanier s Texas Personal Injury Forms, 2nd Ed. to your Law Library! Includes a CD of over 200 forms! This book and companion CD will provide you with the library of renowned personal injury attorney Mark Lanier of the Lanier Law Firm and will guide you through your entire personal injury case from start to finish. By Mark Lanier Lanier s Texas Personal Injury Forms Forms on Disk Order today by calling or visit our online catalog at Second Edition About the Author W. Mark Lanier founded The Lanier Law Firm in Since then, Lanier has earned widespread recognition as one of the top trial lawyers in the United States. His work for clients across the country is supported by firm s offices in Houston, New York, Los Angeles and Palo Alto, California. Lanier consistently is recognized among the country s leading legal minds by his peers and the media. The National Law Journal named him one of nation s Top 10 Trial Attorneys in 1998 and 2006, the same year the publication named Lanier as one of the 100 Most Influential Lawyers in America. In 2010, The National Law Journal named Mark as one of the most Influential Attorneys of the Decade. He has earned similar honors from other publications, including The American Lawyer and Texas Monthly. In its coverage of Lanier s stunning verdict in the nation s first Vioxx trial, The New York Times described him as one of the top civil trial lawyers in America. Lanier is certified as a Personal Injury Trial Specialist by the Texas Board of Legal Specialization. He is licensed to practice in all Texas state and federal courts, as well as the U.S. Supreme Court. Lanier also is licensed to practice in New York state. He is frequently asked to instruct other attorneys about his trial techniques in seminars held across the nation.

6 24 TEXAS LAWYER July 29, Timekeepers Salaries 7th-Year Associate 4th-Year Associate 1st-Year Associate Survey Median Averages $138,000 $135, % $124,375 $120, % $115,000 $110, % Austin/San Antonio $145,000 $143, % $135,000 $135, % $125,000 $130, % Dallas/Fort Worth $154,000 $147, % $130,000 $130, % $130,500 $127, % Houston $138,575 $136, % $125,053 $123, % $95,000 $90, % Other $102,500 $101, % $92,000 $90, % $77,750 $75, % 100+ lawyers $190,000 $187, % $170,000 $167, % $147,500 $146, % lawyers $145,000 $150, % $135,000 $135, % $130,000 $130, % lawyers $129,000 $125, % $111,000 $112, % $95,000 $90, % <30 lawyers $110,000 $108, % $98,125 $97, % $75,000 $75, % Legal Assistant 7+ Years of Experience Legal Assistant 4-6 Years of Experience Legal Assistant 1-3 Years of Experience Survey Median Averages $68,723 $66, % $57,256 $55, % $50,150 $48, % Austin/San Antonio $67,612 $67, % $53,667 $52, % * * * Dallas/Fort Worth $74,900 $72, % $60,000 $60, % $54,600 $51, % Houston $65,825 $62, % $52,667 $50, % $50,000 $48, % Other $56,067 $54, % $39,438 $38, % $31,200 $30, % 100+ lawyers $77,054 $73, % $62,933 $59, % $55,625 $53, % lawyers $66,500 $66, % $50,000 $50, % $40,000 $40, % lawyers $68,488 $66, % $55,834 $53, % $52,124 $51, % <30 lawyers $65,000 $62, % $51,256 $52, % $29,900 $29, % *Data not available Legal Secretaries Salaries 7+ Years of Experience 4-6 Years of Experience 1-3 Years of Experience Survey Median Averages $55,009 $54, % $49,250 $48, % $39,000 $38, % Austin/San Antonio $51,500 $49, % $48,525 $48, % $48,084 $47, % Dallas/Fort Worth $59,265 $58, % $46,270 $44, % $36,905 $35, % Houston $60,000 $58, % $49,754 $48, % $45,950 $44, % Other $45,271 $43, % $42,000 $40, % $27,300 $27, % 100+ lawyers $60,118 $58, % $57,498 $57, % $53,000 $51, % lawyers $56,308 $56, % $57,167 $56, % $50,000 $48, % lawyers $54,474 $52, % $46,000 $43, % $36,905 $36, % <30 lawyers $55,236 $54, % $49,250 $48, % $39,000 $38, %