1. 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 RESERVED. Chapter 1

2. 2 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. The Legal Team LEGAL TEAM AttorneysLegal AssistantsSecretaries Law Librarian & Law Clerk ClerksSpecialists Administrators Other

3. 3 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Attorneys Partner/Shareholder Managing Partner Associate Attorney Lateral Hire Nonequity Partner Staff Attorney Contract Attorney Of Counsel

4. 4 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistants OrganizationDefinition 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. 5 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistants OrganizationDefinition 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.”

6. 6 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistants Legal Assistant or Paralegal Legal Assistant Manager Freelance or Contract Legal Assistant Independent Legal Assistant or Legal Technician

7. 7 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistants – Daily Functions Draft correspondence74% Case management72% Calendaring deadlines63% Automation systems/computers56% Draft pleadings46% Office matters44% Assist with client contact44% General, factual research40% Document analysis/summary36% Court filings33% Investigation26% Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report. Personnel management22% Client/witness interviews14% Training employees13% Legal research12% Prepare/attend closings 8% Law library maintenance 4% Deposition summaries 2% Prepare/attend depositions 2% Assist/attend mediations 1% Assist at trial 1%

8. 8 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistant – Practice Areas Civil litigation45% Corporate29% Personal injury26% Contracts24% Real estate23% Admin/government/public19% Probate/estates18% Trusts and estates18% Insurance17% Office management17% Employment/labor law17% Medical malpractice16% Bankruptcy15% Family law13% Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report. Collections13% Products liability13% Workers’ compensation12% Intellectual property12% Banking/finance11% Criminal10% Mergers/acquisitions9% Tax8% Environmental law7% Securities/antitrust7% Energy/utility5% Oil and gas5% Immigration5% Social Security5%

9. 9 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistant – Employment Legal Assistant EmployerPercent Private law firm69% Corporation14% Public sector/government8% Insurance company2% Self-employed2% Health/medical1% Bank1% Court system1% Nonprofit organization1% Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report.

10. 10 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistant – Employment Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report. Number of AttorneysPercent 1 (sole practitioner)15% 2-531% 6-1017% 11-2014% 21-5013% 51-100 7% More than 100 4%

11. 11 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistant – Employment Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report. Number of AttorneysRatio of Attorneys to Legal Assistants Sole.7 2-51.4 6-101.8 11-152.4 16-203 21-403 41-602.7 61-1004.2 More than 1005

12. 12 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. 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

13. 13 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Assistant – Compensation Source: National Association of Legal Assistants, 2004 National Utilization and Compensation Survey Report. By RegionAverage 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

14. 14 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. 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

15. 15 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Other Team Members Legal Administrators Office Manager Law Clerk Law Librarian Legal Secretary Clerks Other

16. 16 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. 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

17. 17 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Attorneys in Private Practice By Type of Office Practice TypePercent Private practice74% Government8% Corporate8% Retired/inactive5% Judiciary3% Education1% Legal aid/pub. def.1% Private association1% Source: The Lawyer Statistical Report, American Bar Foundation, 2004 Edition

18. 18 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Attorneys in Private Practice By Size of Office Private PracticePercent Solo48% 2-5 attorneys15% 6-10 7% 11-20 6% 21-50 6% 51-100 4% 101+14% Source: The Lawyer Statistical Report, American Bar Foundation, 2004 Edition

19. 19 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Legal Forms of Private Law Firms Sole Proprietorship Partnership Professional Corporation Limited Liability Company

20. 20 ©2007 Thomson Delmar Learning. ALL RIGHTS RESERVED. Private Law Firm Management Structure Powerful Managing Partner Rule by All Partners/Shareholders Rule by Management Committee