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The Legal Team, Law Practices, and Law Firm Governance Practical Law Office Management, 3 rd Edition, Thomson Delmar Learning ©2007 Thomson Delmar Learning. ALL RIGHTS ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. RESERVED. Chapter 1

The Legal Team, Law Practices, and Law Firm Governance Practical Law Office Management, 3 rd Edition, Thomson Delmar Learning ©2007 Thomson Delmar Learning

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The Legal Team, Law Practices, and

Law Firm Governance

Practical Law Office Management, 3rd Edition, Thomson Delmar Learning

©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.

Chapter 1

2 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.

The Legal Team

Other

Administrators

Specialists

Clerks

Law Librarian & Law Clerk

Secretaries

Legal Assistants

Attorneys

LEGAL TEAM

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Attorneys

• Partner/Shareholder• Managing Partner• Associate Attorney• Lateral Hire• Nonequity Partner• Staff Attorney• Contract Attorney• Of Counsel

4 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.

Legal Assistants

Organization Definition of “Legal Assistant or Paralegal”

American Bar Association

(ABA)

“A legal assistant or paralegal is a person, qualified by education, training, or work experience, who is employed or retained by a lawyer, law office, corporation, governmental agency, or other entity, and who performs specifically delegated substantive legal work for which a lawyer is responsible.” ABA Standing Committee on Legal Assistants

National Federation of

Paralegal Associations

(NFPA)

“A paralegal/legal assistant is a person qualified through education, training, or work experience to perform substantive legal work that requires knowledge of legal concepts and is customarily, but not exclusively, performed by a lawyer. This person may be retained or employed by a lawyer, law office, governmental agency, or other entity, or may be authorized by administrative, statutory, or court authority to perform this work.”

5 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.

Legal AssistantsOrganization Definition of “Legal Assistant or Paralegal”

National Association of

Legal Assistants (NALA)

“Legal assistants, also known as paralegals, are a distinguishable group of persons who assist attorneys in the delivery of legal services. Through formal education, training, and experience, legal assistants have knowledge and expertise regarding the legal system and substantive and procedural law which qualify them to do work of a legal nature under the supervision of an attorney.”

American Association for

Paralegal Education (AAfPE)

“Paralegals perform substantive and procedural legal work as authorized by law, which work, in the absence of the paralegal, would be performed by an attorney. Paralegals have knowledge of the law gained through education, or education and work experience, which qualifies them to perform legal work. Paralegals adhere to recognized ethical standards and rules of professional responsibility.”

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Legal Assistants

• Legal Assistant or Paralegal• Legal Assistant Manager• Freelance or Contract Legal Assistant• Independent Legal Assistant or Legal

Technician

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Legal Assistants – Daily Functions

Draft correspondence 74%

Case management 72%

Calendaring deadlines 63%

Automation systems/computers 56%

Draft pleadings 46%

Office matters 44%

Assist with client contact 44%

General, factual research 40%

Document analysis/summary 36%

Court filings 33%

Investigation 26%

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

Personnel management 22%

Client/witness interviews 14%

Training employees 13%

Legal research 12%

Prepare/attend closings 8%

Law library maintenance

4%

Deposition summaries 2%

Prepare/attend depositions

2%

Assist/attend mediations 1%

Assist at trial 1%

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Legal Assistant – Practice Areas

Civil litigation 45%

Corporate 29%

Personal injury 26%

Contracts 24%

Real estate 23%

Admin/government/public 19%

Probate/estates 18%

Trusts and estates 18%

Insurance 17%

Office management 17%

Employment/labor law 17%

Medical malpractice 16%

Bankruptcy 15%

Family law 13%

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

Collections 13%

Products liability 13%

Workers’ compensation 12%

Intellectual property 12%

Banking/finance 11%

Criminal 10%

Mergers/acquisitions 9%

Tax 8%

Environmental law 7%

Securities/antitrust 7%

Energy/utility 5%

Oil and gas 5%

Immigration 5%

Social Security 5%

9 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED.

Legal Assistant – Employment

Legal Assistant Employer Percent

Private law firm 69%

Corporation 14%

Public sector/government 8%

Insurance company 2%

Self-employed 2%

Health/medical 1%

Bank 1%

Court system 1%

Nonprofit organization 1%

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

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Legal Assistant – Employment

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

Number of Attorneys Percent

1 (sole practitioner) 15%

2-5 31%

6-10 17%

11-20 14%

21-50 13%

51-100 7%

More than 100 4%

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Legal Assistant – Employment

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

Number of Attorneys Ratio of Attorneys to Legal Assistants

Sole .7

2-5 1.4

6-10 1.8

11-15 2.4

16-20 3

21-40 3

41-60 2.7

61-100 4.2

More than 100 5

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Legal Assistant – Compensation

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

By Years of Legal Experience

Average Total Compensation

1-5 years $35,434

6-10 years $43,433

11-15 years $47,624

16-20 years $48,752

21-25 years $51,796

Over 25 years $51,985

All years $46,862

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Legal Assistant – Compensation

Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

By Region Average Total Compensation

Far West $55,760

New England/East $51,479

Southwest $47,709

Southeast $45,460

Great Lakes $44,415

Plains States $42,694

Rocky Mountains $43,609

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Legal Assistants

• Nonexempt - Fair Labor Standard Act• Legal Assistant Time Generally Is

Recoverable As “Attorney’s Fees”• Billing For a Legal Assistant’s Time Is

Profitable to a Law Office • Billing for Legal Assistant Time

Represents a Cost Savings to the Client Versus Having an Attorney Perform the Work

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Other Team Members

• Legal Administrators• Office Manager• Law Clerk• Law Librarian• Legal Secretary• Clerks• Other

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Types of Law Practices

• Corporate• Government• Legal Service/Aid• Private Law Practice

– Sole Practitioner– Small and Boutique Law Firms– Medium-Size Firms– Large and Mega Law Firms

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Attorneys in Private Practice By Type of Office

Practice Type Percent

Private practice 74%

Government 8%

Corporate 8%

Retired/inactive 5%

Judiciary 3%

Education 1%

Legal aid/pub. def. 1%

Private association 1%

Source: The Lawyer Statistical Report, American Bar Foundation, 2004 Edition

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Attorneys in Private Practice By Size of Office

Private Practice Percent

Solo 48%

2-5 attorneys 15%

6-10 7%

11-20 6%

21-50 6%

51-100 4%

101+ 14%

Source: The Lawyer Statistical Report, American Bar Foundation, 2004 Edition

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Legal Forms of Private Law Firms

• Sole Proprietorship• Partnership• Professional Corporation• Limited Liability Company

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Private Law Firm Management Structure

• Powerful Managing Partner• Rule by All Partners/Shareholders• Rule by Management Committee