By Amanda Hamilton, Patron, National Association of Licensed Paralegals (NALP)

advantages limitations using a paralegal

When running a business, you are always mindful of costs, and when something goes wrong, the immediate thought is ‘how much is it going to cost to put it right?’

When faced with a situation where you need legal help, it’s natural to turn to a solicitor However, with their hourly rates ranging from £200 – £600 you may feel that you are between a rock and hard place. This is particularly likely to be the case if the legal problem you are dealing with is relatively minor.

There is no need for despondency! Paralegals are ready and willing to save the day. Although they aren’t solicitors, paralegals are legally trained and educated to undertake legal tasks and offer help to both businesses and individual consumers. What about fees? On average a paralegal will charge between £30 – £80 per hour, depending on the type of work involved.

There are many areas where a paralegal can be useful to you, however the most common are: contracts, debt collection and employment

Contracts

Drafting commercial business contracts with other businesses or individuals is a skill requiring specialist knowledge. A paralegal can help, either by drafting a contract or reviewing one that has been sent to you to ensure there it doesn’t contain anything detrimental.

For example: a contract includes a clause stating that there is a 90 day notice to terminate the agreement. This is a commonly used termination period. However, this contract goes on to state that notice can only be given prior to the renewal of the contractual term, which may be 12 months. This means that if you were to try to terminate the contract in the thirteenth month, the contract will not come to an end until a further eleven months have elapsed. This could have financial consequences for which you haven’t budgeted. A specialist paralegal should be able to spot immediately and advise accordingly, and/or suggest an alternative form of words that will help to protect you.

Debt collection

Paralegals can help your business to collect on outstanding debts. Many businesses issue invoices with a ‘payment by’ date. When money is not received by the due date cashflow issued can cause stress and pressure.

If a customer can’t pay an invoice, it is, of course, best to talk to them first. Don’t leap straight to legal action. An offer and a willingness to make a part payment and negotiate how to pay the balance would surely be more acceptable than receiving no payment. Plus with this approach you’ll save the time and money needed to chase and collect the debt.

If despite your best-efforts monies remain owing, you’ll need to decide whether or not to take further action. Often that means taking the debtor to court, which is where a paralegal can help. A paralegal can assist you to complete the necessary pre-action protocols i.e. drafting a letter to the debtor and explaining what is owed and how long it is overdue and giving the debtor a certain time frame to pay the amount outstanding, with the threat that if it Is not paid court action will ensue.

If necessary, the paralegal can help with completing the necessary court forms, advising you what to say and how to write it on the form. If it gets that far, paralegals can represent you in court as long as it is a ‘small claim’ i.e. one that is not more than £10k. Hopefully, that won’t be necessary as the debtor is likely to be in contact beforehand, but if it is, the paralegal is there and can assist at a reasonable cost.

A paralegal can also help if you are being taken to court for example if you or the business owes money to another party.

Employment

Paralegals can put together employment contracts for you. A minefield for most lay people. They also will be able to assist you if the worst happens and an employee takes legal action against you. Paralegals have a right to represent clients in a tribunal, which will be useful if an employment matter escalates.

These are just three common examples of when using a paralegal can save you money and ensure you get the advice you need without having to pay high solicitor’s fees. There are many other legal matters that a paralegal can also help with.

Of course there are some limitations imposed on paralegals. They are restricted in what they can do by what is known as ‘reserved activities’. The most common restrictions relate to a ‘right of audience’ i.e. a paralegal is not permitted to represent a client in all courts apart from the small claims’ court and the tribunal.

The second common limitation is that a paralegal is not permitted to ‘conduct litigation’ meaning that they cannot sign letters and documents on a client’s behalf or be an agent and be served with official court documents. However, to get round this, they can draft letters and complete forms for clients. The clients must then sign and serve these themselves.

When hiring a paralegal, make sure that you engage someone sufficiently qualified and appropriately insured. One way to achieve this is to find a paralegal with a Licence to Practise. You can search at https://www.nationalparalegals.co.uk/paralegal-register for paralegals in your area, or with the particular specialism you require.

ABOUT THE AUTHOR

Amanda Hamilton is the Patron of the National Association of Licensed Paralegals (NALP), a non-profit membership body and the only paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres around the country, accredited and recognised professional paralegal qualifications are offered for those looking for a career as a paralegal professional.

Web: http://www.nationalparalegals.co.uk

Twitter: @NALP_UK

Facebook: https://www.facebook.com/NationalAssocationsofLicensedParalegals/

LinkedIn – https://www.linkedin.com/company/national-association-of-licensed-paralegals/

Bio
Latest Posts

Five Fantastic Lawyers™

This post was written by a legal author invited to publish on Five Fantastic Lawyers because of the high value associated with their work. If you'd like to register your interest in publishing really high quality legal content here, please get in touch via our Contact page