TABLE OF CONTENTS - Law Practices, and Law Firm Governance © 2024 ...

Instructor Manual: Cynthia Traina Donnes, Law Practice Management, 5e, 2024, 978-0-357-76740-5; Chapter 1: The Legal Team, Law Practices, and Law Firm Governance

1 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Instructor Manual Cynthia Traina Donnes, Law Practice Management, 5e,

Chapter 1: The Legal Team, Law Practices, and Law Firm Governance

TABLE OF CONTENTS

Overview ................................................................................................................................... 2 Learning Objectives ................................................................................................................. 2 Outline ...................................................................................................................................... 2 Teaching Suggestions ............................................................................................................. 9 Answers to Practical Applications .........................................................................................11 Answers to On the Web Exercises ........................................................................................11 Case Review Exercises ..........................................................................................................11

• / 4

Instructor Manual: Cynthia Traina Donnes, Law Practice Management, 5e, 2024, 978-0-357-76740-5; Chapter 1: The Legal Team, Law Practices, and Law Firm Governance

2 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

OVERVIEW

Chapter 1 sets the stage for the rest of the text. It explains what types of job positions and functional areas there are in a law practice office, including basic information about practicing paralegals. The chapter is full of current surveys and research regarding what paralegals do on the job, what types of firms they practice in, who typically supervises them, what the ratio of paralegals to attorneys is in different-size firms, compensation, and overtime. The chapter also gives students an understanding of what type of law practices exist, along with the different legal and management structures for law offices.

LEARNING OBJECTIVES

After reading this chapter, the student should be able to:

• 1.01 Explain the titles and duties of each member of the legal team.• 1.02 Identify the different types of law practices.• 1.03 Explain alternative law office organizational structures.[return to top]

OUTLINE

• The Legal Team (PPT Slide 3)

The legal team consists of attorneys, administrators, law clerks, librarians, paralegals, secretaries, clerks, and other parties (Exhibit 1-1).

• Attorneys (PPT Slide 4)

Attorneys counsel clients regarding their legal rights, represent clients in litigation, and negotiate agreements between clients and others.

• Partner/Shareholder—A partner or shareholder is an owner in a private

law practice who shares in its profits and losses.

• Managing Partner—A managing partner is chosen by the partnership to

run the firm, make administrative decisions, and set policies.

• Associate Attorneys—An associate attorney does not have an ownership

interest in the law firm and does not share in the profits. The associate is an employee of the firm who receives a salary and has no vote regarding management decisions.

• Lateral Hire—A lateral hire is an associate who is hired from another firm.
• Nonequity Partner—A nonequity partner does not share in the profits or

losses of the business but may be included in some aspects of the 2 / 4

Instructor Manual: Cynthia Traina Donnes, Law Practice Management, 5e, 2024, 978-0-357-76740-5; Chapter 1: The Legal Team, Law Practices, and Law Firm Governance

3 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.management of the firm and may be entitled to other benefits not given to associates.

• Staff Attorney—A staff attorney is an attorney hired by a firm with the

knowledge and understanding that they will never be considered for partnership.

• Contract Attorney—A contract attorney is an associate attorney who is

temporarily hired by the law office for a specific job or period. When the job or period is finished, the relationship with the firm is over.

• “Of Counsel”—The “of counsel” position is a flexible concept but

generally means that the attorney is affiliated with the firm in some way, such as a retired or semiretired partner. “Of counsel” attorneys lend their names to a firm for goodwill and prestige purposes in order to attract additional clients and business to the firm.

• Attorney Compensation—Attorney salaries are usually based on an

hourly rate and billable hours.

• Legal Administrators (PPT Slide 7)

Legal administrators are responsible for some types of law office administrative systems, such as general management, finance and accounting, human resources, marketing, or computer systems (see Exhibit 1-2, Legal Administrator Job Description). Administrators typically have college degrees in business, accounting, or related fields.

• Paralegals (PPT Slide 8)

Exhibit 1-3 contains side-by-side definitions of a paralegal/legal assistant that are consistent with the American Bar Association (ABA) definition and found under the National Federation of Paralegal Associations (NFPA), National Association of Legal Assistants (NALA), and American Association for Paralegal Education (AAfPE).The ABA offers a paralegal section with membership options. It also provides stated guidelines for educational institutions wanting to obtain ABA accreditation for its programs. The ABA’s goal is to ensure that well-qualified paralegals, those with proper training and supervision, can be delegated work that would otherwise have to be done by a lawyer.

• Paralegal—Paralegals are a distinguishable group of persons who assist

attorneys in the delivery of legal services. Through formal education, training, and experience, paralegals have knowledge and expertise regarding the legal system, and substantive and procedural law, which qualifies them to do work of a legal nature under the supervision of an attorney.

• Freelance or Contract Paralegal—A freelance or contract paralegal

works as an independent contractor with supervision by and/or accountability to an attorney. 3 / 4

Instructor Manual: Cynthia Traina Donnes, Law Practice Management, 5e, 2024, 978-0-357-76740-5; Chapter 1: The Legal Team, Law Practices, and Law Firm Governance

4 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• Independent Legal Assistants or Legal Technician—Independent

paralegals or legal technicians provide services to clients in regard to a process in which the law is involved, and for whose work no lawyer is accountable. Legal technicians assist in providing “self-help services to the public.”

• Limited License Legal Technician—A limited license legal technician, in

states where legislation has been passed, is a person qualified by education, training, and experience to engage in the limited practice of law in the approved practice area as per the state’s laws. In 2013, the state of Washington passed legislation allowing non-attorneys, under carefully regulated circumstances, with specialized training and certification to practice law in a limited capacity (Washington State Rule 28— Limited Practice Rule for Limited License Legal Technicians). Other states, including California and Oregon, have formed task forces to consider the adoption of a Limited License Legal Technician position.

• Paralegal Manager—In larger legal organizations, a paralegal manager

may oversee the paralegal program for the organization, including the hiring, supervising, training, and evaluating of paralegals.

• Paralegals’ Roles—A great bit of time for paralegals is spent

researching. Their roles vary greatly.

• Fair Labor Standards Act (FLSA)—The FLSA is a federal law that sets

minimum wage and overtime pay requirements for employees.Employees do not need to be paid overtime if they fall into one of the

four “white-collar” exemptions: executive, administrative, professional, or

outside sales. If an employee is “exempt,” he or she is not required to be paid overtime wages (e.g., wages for time spent in excess of 40 hours a week). The issue of whether paralegals are classified as “exempt” is hotly debated.The U.S. Department of Labor, which administers the FLSA, has long taken the position that paralegals are “nonexempt,” and thus are entitled to overtime pay over 40 hours a week. That is because their “duties do not involve the exercise of discretion and independent judgment required by the regulations,” and that they do not fall into the learned-profession exemption because “an advanced specialized degree is not a standard prerequisite for entry into the field” (because there are many two-year associate degree paralegal programs). The Department of Labor’s position has been widely criticized for the ruling because it fails to take into account the recent practice and utilization of the recognized status of the profession, advanced education, continuing legal education, substantive duties performed, and the degree to which a paralegal exercises discretion and independent judgment in the performance of the

• / 4