1. 2017 Fundamentals of Law Webinar-Young Lawyers Division
Increase Profitability and Efficiency of your Firm Through Paralegal Utilization Tracy Gompf, JD-Paralegal Program Coordinator and Professor Minnesota State University Moorhead
2017 Fundamentals of Law Webinar-Young Lawyers Division

2. What is a Paralegal? Paraprofessional for the legal profession
Wide range of definitions
Definition has changed in last 20 years
Lawyers use two terms to define support staff:
Legal Assistant
Paralegal

3. What is the Difference?
Legal Assistants primarily perform clerical tasks as delegated by the lawyer
The tasks performed usually can’t be billed to the client
Paralegals primarily perform substantive legal tasks that would be performed by the lawyer without a paralegal
The tasks are usually billed to the client at the paralegal rate

4. Substantive Legal Tasks
Direct contact with clients
Drafting legal documents for review
Organizing legal files and information
Interviewing witnesses
Preparing discovery documents for review
Legal research and legal writing
Preparing briefs and memoranda for review
Many more!

5. Delegation of Tasks Lawyer can delegate tasks to a paralegal
N.D.R.P.C. Rule 5.3(d)(1): A lawyer may delegate to a legal assistant any task normally performed by the lawyer except those tasks proscribed to one not licensed as a lawyer by statute, court rule, administrative rule or regulation, controlling authority, or the rules of professional conduct
Rule 5.3(d)2-Paralegals can’t establish client-lawyer relationship, establish fees, give legal advice, sign pleadings, or appear on behalf of client

6. Supervision
Paralegal tasks are performed under the direct supervision of a lawyer unless an exception applies
N.D.R.P.C. 5.3 provides that a lawyer must make reasonable efforts to ensure that the nonlawyer’s conduct is compatible with the professional obligations of the lawyer
Paralegals are expected to be familiar with rules of professional conduct that apply to lawyers

7. Unauthorized Practice of Law
N.D.R.P.C. 5.5: A Lawyer can’t permit a paralegal to engage in the unauthorized practice of law
Supervisory obligation includes ensuring that the work assigned to a paralegal is not UPL
Lawyer must provide sufficient supervision to ensure that the paralegal is not engaging in UPL outside of the tasks assigned

8. Disclosure of Paralegal Status
Paralegal must disclose status in communications with clients and third parties
Paralegal can have business cards and be listed on lawyers’ signage and stationery with a disclosure of status N.D.R.P.C. Rule 7.5
Paralegal must not engage in the unauthorized practice of law

9. Billing for Paralegal Tasks
N.D.R.C.P. 1.5: a lawyer may charge for the work performed by a legal assistant
Prohibits any form of fee splitting between the lawyer and the paralegal
Compensation of the paralegal cannot be contingent on the outcome of a case or the profitability of the lawyer’s practice

10. Effective Use of Paralegals
Myths-i.e. Paralegals will “take” work from associates
Large percentage of tasks in the legal setting can be effectively performed by paralegals
Frees the lawyer for tasks that can only be performed by the lawyer
Serves clients more effectively with quality of contact and reduced costs
Lawyers can serve more clients and increase professional success

11. Examples of Paralegal Tasks
Conduct factual investigation-interview clients and witnesses for background info and general communication
Conduct legal research and draft pleadings, correspondence and other documents
Maintain calendaring system
Index or summarize transcripts
Assemble, analyze and draft discovery
Client Contact-keep clients updated on case status
Trial Preparation and Support
Important!-Review, Implement and Maintain Technology
Result: Lawyer can handle more cases more efficiently

12. Analyzing the Profitability of Paralegal Work

13. Hourly All Work by Lawyer at $250 Per Hour
Task Hours Cost
Client Interviews $ 1,000
Witness Interviews $1,500
Responding to Written Discovery $3,000
Preparing for and Taking Depositions $3,000
Legal Research $2,500
Preparation of Pleadings $3,000
Trial Preparation $4,000
Trial $4,000
Total $22,000

14. Hourly with team - Paralegal at $100 Per Hour
Task Timekeeper Hours Cost
Client Interviews: Lawyer $1000
Paralegal $ 400
Witness Interviews: Lawyer $ 500
Paralegal $ 600
Responding to Discovery: Lawyer $ 500
Paralegal $1,400
Prep. for and Taking Depos.: Lawyer $1,500
Paralegal $ 700

15. Hourly with team - Paralegal at $100 Per Hour (Cont’d)
Task Timekeeper Hours Cost
Legal Research: Lawyer $ 500
Paralegal $1,200
Preparation of Lawyer $ 500
Pleadings: Paralegal $1,400
Trial Preparation: Lawyer $2000
Paralegal $1,600
Trial: Lawyer $4,000
Paralegal $1,600
Total: $19,400

16. Improved Client Satisfaction and Retention
Reducing Legal Fees

17. Reducing Legal Fees: Cost to Client
Scenario 1
Lawyer Works 88 Hours
Scenario 2
Lawyer Works 42 Hours
Paralegal Works 89 Hoursrs
Costs to Client $22,000
Costs to Client $19,400
Client Saves $2,600, or 12%

18. Reducing Legal Fees: Cost to Firm
Scenario 1
Lawyer Works 88 Hours
at $182/hr. (Cost to Firm)
Total Cost to Firm = $16,016
Scenario 2
Lawyer Works 42 Hours
at $182/hr.(Cost to Firm)
Paralegal Works 89 Hours
at $67/hr.(Cost to Firm)
Total Cost to Firm = $13,607
Firm Saves $2,409 or 15%

19. Thank You For More Information Contact Tracy Gompf, JD
Paralegal Program Coordinator and Professor
Minnesota State University Moorhead
1104 7th Ave. South, Dept. of Economics, Law and Politics, MacLean Hall, Moorhead, MN 56563
For more information refer to the attached Bibliography for source material

20. Bibliography-Sources
James Wilber, “First Thing We Do, Let’s Reduce the Number of Lawyers”,
Dorthe J. Howell, “Paralegal Utilization: Improving Efficiency and Profitability”, Maryland Bar Bulletin, January 2007
MSBA Paralegal Committee:  Improve your Bottom Line & Increase Your Practice through Proper Utilization of Paralegals, revised 2012
ABA definition of Legal Assistant/Paralegal adopted by the ABA House of Delegates in August 1997,
Jeffrey D. Campbell, “The Economic Benefits of Paralegal Utilization”, Copyright 2005 American Bar Association.
For further information on Paralegal Utilization: