You better shop around: how to cut back on hefty lawyer fees.

When the subject of lawyers comes up in conversation, one of the first images that often comes to mind is a series of numbers preceded by a dollar sign.

There is perhaps no other profession as criticized for its hefty fees as lawyers -- and with charges of up to $400 an hour, it's easy to understand why.

But while legal assistance is a necessity for most any business, high legal fees aren't, claims Raymond M. Klein, a partner at Los Angeles law firm Cassady & Klein and author of a book called "Putting a Lid on Legal Fees." Being well-prepared for an encounter with the law can end up saving you thousands in excessive legal fees, he said.

"Think of yourself as an employer interviewing applicants for a job," advised Klein. Don't interview just one prospective hire, said the Harvard University graduate, but instead book a free 15-minute consultation with several lawyers before settling on your pick.

The best way to maximize the quarter-hour interview, he added, is by typing out a one-page summary of your legal needs for both of you to refer to. It also helps, he said, to ask the attorney very specific questions about billing -- not just to know how much his or her services cost, but also to find out your attorney's attitude about billing and client service.

"The consumer has moved past asking 'tell me how you spent my money' to 'show me how well you are going to spend my money,' "said Rick McKnight, head of litigation at the Los Angeles office of law firm Jones, Day, Reavis & Pogue. McKnight. "Clients are demanding more value from their attorneys," he said. "Value is not how many hours it took the lawyer to find the answer, but how good is the answer. Value is not how many depositions have to be taken, but getting to the core evidence that guts the opponent's case."

One way that lawyers are trying to deliver more "value," McKnight is by "moving away from the worn down hourly rates to a wider menu of choices." These include contingency fees, fixed fees, sticking to a pre-set budget and discounting for routine services.

HOURLY FEES 

Many clients have grown wary of hourly fees because they believe such fees encourage lawyer inefficiency. Even hourly fees can be kept under control, though, if clients take the time to be informed consumers.

If your lawyer charges an hourly rate, are you going to be billed in quarter-hour or six-minute increments? If the answer is the former, one phone call by your lawyer can cost $50 at a $200-an-hour billing rate. If you are billed in six-minute increments, that call will cost $25. With just a few phone calls, the numbers can really start adding up.

It is also essential to clarify who will be working on your case. Certain legal services can be handled with less expense by a junior attorney or paralegal. Other matters are better not delegated to someone who will take more time to get something done. While it may not be possible or advisable to decide on exactly what will and what won't be delegated, you should discuss this with an attorney to try and get the most for your money.

There is no shame in asking attorneys to freeze or reduce hourly rates. A survey by the American Bar Association's Litigation Section found that 75% of in-house corporate lawyers last year asked law firms they were dealing with to freeze or reduce hourly rates. Nearly all the law firms agreed -- suggesting that times are tougher than they used to be for most lawyers.

CONTINGENCY FEES

Contingency fees have long been a staple of personal injury attorneys. Now, business attorneys are adopting the same types of shared-risk approaches with company clients, said Robert W. Bollar, partner at law firm Cummins & White. When pursuing a client's claims, for example, a firm might charge half its hourly rate and provide for a 14% to 25% contingency fee if the client is successful in recovering money through a judgment or a settlement. This means the client pays less money up-front and the attorney is rewarded for moving things quickly along.

Risk sharing may raise questions, though, about whether your attorney will still be looking out for your best interest if the attorney has a stake in the matter. Be sure to discuss this with your attorney before entering any contingency fee arrangement.

FIXED FEES

Standard, fixed fees are becoming increasingly popular for both transactional matters and litigation. This type of arrangement helps clients know exactly what their legal expenditures are going to be while encouraging attorneys to maximize their time. Fixed fees work best for well-defined matters that the attorney has handled before. Be sure to put in writing what services will be provided for the fixed fee.

CLIENT CHECKLIST

The best way to save money on legal services is to be an informed consumer:

* Demand a budget or estimate of what it will cost to complete a certain matter. The client should be notified in writing by the attorney of changed circumstances that might justify straying from the budget, Bollar suggested.

* Communicate to your lawyer that you will not pay for secretarial and word-processing overtime unless it's a necessity to meet a pressing deadline. You should not be overcharged if your attorney waited until the last minute to get something done for you.

* Request a monthly status letter from your attorney; this will help you keep track of how your legal matters are progressing.

* Ask for a discount on payment of legal invoices if payment is made with two weeks.

* Make sure there is one attorney who is personally responsible for your files. This avoids confusion and saves time that is often wasted hunting down files.

* Mistakes by a lawyer or law firm should not be charged to the client. Do not allow yourself or your company to be billed for work that was not approved, budgeted, properly done or which needs to be corrected because of mistakes that are not your fault.

* Watch out for excessive markups by law firms for photocopies, faxes, phone calls, postage and other non-fee items. According to the New York-based Institute of Management and Administration, some law firms charge clients as much as 50 cents per page for copies, $4 a page for both incoming and outgoing faxes, a 250% markup on long-distance calls, up to 100% markup for postage costs and up to $85 an hour for messenger service. While most law firms wouldn't attempt such outrageous overcharges, clients need to find out exactly how they will be charged for services related to legal work. Other expenses to look out for include non-emergency overtime, first-class travel accommodations, charges for using a law firm's conference room, supplies and charges for travel time.

* Request an itemized bill from an attorney instead of just a total, Klein advised. In order to know what you are being charged, make sure your bill doesn't just list total fax charges, for example, but also the charge per page. "You're the boss and you pay the bill," he said, so you have a right to a very specific list of charges.

* Look for opportunities to do some of your own legwork or paperwork and don't just drop a bunch of legal work into the lap of your attorney, Klein said. "There's a chance for the client to do a lot of the work," he said, such as having your own secretary type out paperwork, instead of a higher-priced legal secretary on the attorney's payroll. Clients who choose to distance themselves from a legal matter, Klein said, "lose their right to complain about cost."

Ron Galperin is a free-lance writer and principal in Real Estate News Group, a Beverly Hills-based writing, editing and consulting firm. Galperin received his Juris Doctor from Loyola Law School In Los Angeles.