06/ 25/ 2003
A Small-Business Owner's Guide
CALA and NFIB are working to ensure that America's small-business owners have a voice in our nation's court system.
Use good judgment! In business, conflicts are inevitable -- but messy lawsuits don't have to be. Should you get into a dispute and need help, first try to avoid the time, money and stress involved in filing a lawsuit by making phone calls, writing letters, or setting up meetings with the other party to find a way to resolve the problem. However, the National Federation of Independent Business and Citizens Against Lawsuit Abuse understand that sometimes you will need a lawyer, if only to find out your legal options. If you find yourself in this situation, don't panic! We've compiled the following tips to help guide you through the process of choosing the right legal counsel. After all, being a smart legal consumer can be the best weapon against lawsuit abuse.
Tip #1 -- Find the right lawyer
Finding a lawyer with the right credentials can be essential to a successful case. You can find legal counsel through several resources:
State bar associations Your local bar association can help you identify the names of people who specialize in your problem and let you know if the lawyer has been the subject of an ethical complaint or inquiry.
Lawyer referral services You can contact a lawyer referral service, which will connect you with a lawyer who specializes in your problem for around $30. Some services will allow you to talk with a lawyer for the first half hour at no charge. These services can be found in the yellow pages under "Attorney Referral Services," "Attorneys" or "Lawyers."
Recommendation Talk to your friends. Some of the most reliable referrals are from people you trust - fellow business owners, friends and family - who have used lawyers recently. If you already know lawyers, talk to them as well.
Advertisements Don't believe everything you see in an advertisement. If it sounds too good to be true, it probably is. Be cautious of words such as "free" and "no charge." Many reputable lawyers do not advertise, so don't assume that the size of the ad is related to the quality of the lawyer. Don't hire a lawyer who comes knocking at your door. If a lawyer solicits your business without your permission, he or she may be "ambulance chasing." And ambulance chasing, also known as barratry, is a violation of most state bar rules. If a lawyer can't follow rules to win clients, can you expect him to follow the rules to win your case?
Tip #2 -- Choose the right lawyer
Even if you have an urgent legal matter, interview a few lawyers before making your final decision. It is important that you find the lawyer whom you are most comfortable working with, and that this person has the necessary skills to win your case. On your interviews: Be sure to bring the general points of your case and all the names, addresses and phone numbers of everyone associated with your case. Don't be shy about asking the lawyer questions - after all he or she will be asking you many questions in the long run.
You should feel free to ask when the lawyer last handled a matter like yours and the outcome of the case. It is important to find out all of your legal options according to that lawyer. You should also find out how long the lawyer expects your case to take, if a less experienced lawyer will be handling your case, and the litigation fees involved. Make sure the lawyers don't overwhelm you with legal jargon. If you don't understand something, ask for clarification. A good lawyer is always willing to make sure you comprehend everything and are fully satisfied. It is important that you understand the terms of your agreement with the lawyer. Never sign anything until you have time to review it and consider other offers.
Tip #3 -- Understand all the legal costs before you sign the dotted line
Hourly rates If you choose to pay by the hour, you agree to pay the lawyer's bill regardless of the outcome of your case. You should also expect to pay for out-of-pocket fees associated with the case, such as postage, photocopies and long-distance calls. Ask your lawyer to keep a detailed record of hours worked on the case. Make sure the contract states the lawyer's and his employees' billing rates, and your right to audit records and expenses.
Contigency fees A contingency fee arrangement means that you do not pay the lawyer a fee unless the case is won or settled out of court. Typically, contingency fees amount to less than 33 percent of an award if cases are settled, and up to 50 percent if the case goes to court. Before you sign the contract, be sure to negotiate the fee. Most contingency fee arrangements also deduct out-of-pocket costs, such as photocopying and phone calls. Determine if the fee will be paid before or after the lawyer's expenses are deducted, and if you will be responsible for those fees if the case is lost. Be sure to get all this information in writing.
Tip #4 -- Control your legal costs
After hiring a lawyer: It is important that you are comfortable with how your case is executed, which includes sticking within the budget. To keep legal costs down: Don't make unnecessary phone calls to your lawyer's office. When possible, put your concerns in writing and keep a copy for yourself. This gives you a record and allows for efficient communication. Require your attorney to receive your authorization for expenses that exceed $200. Ask for copies of all receipts. Meet quarterly with your lawyer to assess the progress of your case compared to your budget.
Tip #5 -- Support Citizens Against Lawsuit Abuse and the NFIB Small Business Legal Center 
Citizens Against Lawsuit Abuse serves as a legal watchdog against lawsuit abuse. Local CALA groups educate their communities about ways to help fight lawsuit abuse. The NFIB Small Business Legal Center is working to bring the small-business agenda to the courtroom. Together, CALA and NFIB are working to ensure that America's small-business owners have a voice in our nation's court system. Your support can help make these efforts a success.
Contact Citizens Against Lawsuit Abuse at (800) 826-2252.
