Paying for legal advice by the hour is a thing of the past, says award-winning law firm LegalVision – offering business owners a subscription plan to keep a legal team on tap but without a flood of legal bills.
The commercial law firm is disrupting New Zealand's legal landscape with a membership model where clients pay a weekly fee for unlimited legal advice and receive help with all manner of business legal services. Common areas of assistance include trademark applications, employment law advice, contract preparation and reviews.
Named the fastest-growing law firm in the Asia-Pacific region by the Financial Times, and Law Firm of the Year at this year's Australasian Law Awards, LegalVision has big plans for New Zealand. Lachlan McKnight, the firm's CEO, says many business owners are reluctant to seek legal advice when they need it as they are often faced with hourly fees of around $800.
"They put off getting advice, or don't get any at all, and then find themselves in even more difficulty later on," he says. "But clients paying a fixed weekly fee don't hesitate to call us because they are already covered."
This leads to two things, says McKnight. First, LegalVision's lawyers get to know each client and their business really well, developing a solid relationship and understanding. Second, clients are also legally advised at every step – with the result they tend not to end up in complex legal quagmires.
"The normal client-lawyer relationship is transactional, but we build long-term relationships with our members."
McKnight says his firm, operating in Australia for eight years, started business by offering fixed-fee arrangements before switching to the membership model.
"When we launched the membership model, it was all about how we can deliver ongoing value to clients. Because the client is paying an all-you-can-eat fee, that covers all their legal fees – apart from a few exceptions – and it means they don't worry about contacting us.
"With a traditional law firm, every time you call your lawyer, you are on the clock. That means people are very careful about when they call their lawyer and, if they can do something themselves, they will. So they could end up taking more risk.
"With our membership model, we know each client is going to be with us for a long period of time, so we invest a lot of effort and energy in getting to know them, their business, their needs and their plans. That allows us to provide much more effective advice."
The firm's staff of 150 has helped 180,000 businesses across Australia and New Zealand. In Auckland, where it opened an office at the start of the year, it has around 250 clients and ambitious plans to increase both client and team member numbers.
McKnight says thousands of businesses visit LegalVision's website every month to search its free database of legal articles covering areas such as contract law, franchising, property, disputes and trade marks.
While the firm has an Auckland base, most legal consultations take place either on the phone or by video conference – with clients using the firm's portal to book as many appointments as they need.
Face-to-face meetings can be arranged and fees covering services such as court appearances are billed by arrangement. Membership fees range from $119 to $749 a week based on the size of the business.
McKnight says any one of its team of lawyers in either New Zealand or Australia could be assigned to help a client: "We have New Zealand-trained lawyers working in New Zealand and in Australia and, if a New Zealand-based business owner wants legal advice based on Australian law, then we can help – it's all included in the membership.
"The lawyer assigned to help a client depends on the type of work that needs doing, so they get specialist advice every time."
McKnight says that while his firm's business model is shaking up established players, there's plenty of work for everyone; his firm is opening up the doors of legal help to those who might not ordinarily use it.
"LegalVision is more efficient than the competition," he says. "When you bill by the hour, there's no incentive to be efficient.
"Our membership model incentivises efficiency on our part – and that means we turn work around very quickly. Clients appreciate that."
For more information: legalvision.co.nz