In legal circles it's called the billable hour. In layman's terms, it means your lawyer charges you an hourly fee for his services that is pre-determined -the rate that is. How many hours it takes to resolve your case, well, that is often undecided.

Adding to the muddiness of the billable hour is the fact that law firms break down the billable hour into as little as six minute increments. So, if your $300 an hour lawyer makes a six minute phone call regarding your business, you have paid $30 for that call. Depending on the outcome of the call, it could be the best 30 bucks you've ever spent, or, added up with 157 other calls, faxes, internet searches and other six minute billable acts, it could nickel and dime your company into the poorhouse.

Regarding several recent high profile national lawsuits, I've hear this said: "The only people getting rich are the attorneys." That may be a broad generalization, but I think it speaks to the growing frustration that struggling small business owners feel when it comes to paying for their much-needed legal services.

The issue of "the death of the billable hour" is not a new one, though it is one that appears to be gaining traction. I first spoke with Hodgson Russ CEO Gary Schober about the issue last summer and he said at his firm, more clients were asking about alternative billing and as he said at the time, he didn't see the billable hour going away, but he did see more individualized billing methods being used to meet client demands.

Another "top 10" firm explained to me that the client has options even within the billable hour structure. For example, if your needs are basic, you can employ an associate at the firm for considerably less than a seasoned partner. If your case requires multiple attorneys, perhaps you utilize one partner, an associate and several paralegals. The bottom line is, times are tough, companies are tightening their belts and law firms are recognizing the need to adapt from a billing model that is quickly becoming antiquated.

Yesterday I spoke with New York State Bar Association President Stephen Younger in what became a broad discussion on "the state of the profession." Among the topics we discussed, I asked Younger for his assessment of the shelf life of the billable hour, specifically, are the days of the $300 an hour attorney numbered?

"Let me say this," Younger explained. "If you hired someone to come remodel your kitchen, and they told you it would cost $300 an hour, but they didn't give you any idea how many hours it would take to complete the job, you would go find another contractor."

With that said Younger sees more firms going away from the billable hour and working on alternative billing, such as a fixed rate method.

Client A comes into the office, the case is assessed, and an estimate for legal services is given. Instead of $300 an hour for as long as the case takes, it would be more like, we see the case requiring 35 hours with a partner, plus 35 hours with a paralegal. Here is the total breakdown and cost.

Clearly this won't work in every case, but where applicable, it seems as though it will be a big win for the client who will be able to better forecast budgets based on concrete costs for legal services and better manage and sustain his business.

We've seen large law firms both locally and nationally forced to lay off attorneys and legal support staff in recent years. Firms that were once viewed as immune to the rise and fall of the economy are clearly as susceptible as their smaller counterparts. Like most businesses, those that adapt to change tend to survive. I see the same holding true for law firms willing to stray from the old-school model of the billable hour. It seems like more and more of them are seeing the light as well.

Based on conversations with firms across Western New York, and leaders in the legal community statewide, it may be safe to say, the billable hour isn't dead, but it's hooked up to life support.