One of the most common ways for misunderstandings to arise between law firms is in respect of fees usually in the context of enquiries which may be preliminary or of a speculative nature.

With a view to minimising such misunderstandings whilst seeking to maintain the spirit of goodwill and co-operation that should exist between Globalaw firms and indeed with a view to fostering communication, the following best practice guidelines have been adopted regarding the request and provision of free advice time (“free time”):

1. Globalaw member firms are expected to extend a certain amount of free time to the following requestors (each a “Requestor”): (a) other Globalaw member firms; (b) such non-profit organisations as may be designated by the Board from time to time; and (c) member firms of the AESIS network of independent insurance brokers (for so long as Globalaw’s co-operation with AESIS subsists).
2. Free time should be no more than 30 minutes in respect of a particular enquiry. At the discretion of the firm receiving the inquiry (the “Receiving Firm”), free time may be extended.
3. Free time shall not include disbursements. If a request for advice requires a Receiving Firm to incur actual costs, this shall be communicated to the Requestor. If the Requestor confirms the instruction, the Receiving Firm shall be entitled to charge for the disbursement.
4. Free time is not appropriate for an enquiry which is quite clearly going to require detailed consideration and obviously more than 30 minutes of time to deal with. The Receiving Firm should not hesitate to mention this to the Requestor. It may not be apparent to the Requestor that in the jurisdiction of the Receiving Firm the enquiry will require a degree of commitment inappropriate to the free time concept.
5. If a Requestor wishes to take advice from a Globalaw member then the Requestor shall at the outset make it clear that it wishes to use free time.
6. Free time should not be used if a requesting Globalaw member knows that it will be able to charge its client for the advice being sought.
7. Once the Requestor has requested free time, the burden of informing the Requestor that free time is at an end shall be on the Receiving Firm. As soon as the Receiving Firm informs the Requestor that free time is over, the parties shall follow the Globalaw Code of Practice requiring a retainer letter to be issued by the Receiving Firm setting out its terms for dealing with the matter.
8. The free time policy is not to be abused and use of free time will be monitored.
9. The Board would be pleased to hear from you about your experience of using free time, whether as a requesting member or a Receiving Firm.

For more information, visit: www.globalaw.net.

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