FOR IMMEDIATE RELEASE                                          AT
FRIDAY. JANUARY 17, 1997                           (202) 616-2771
                                               TDD (202) 514-1888

 JUSTICE DEPARTMENT ALLOWS GROUP OF ATTORNEYS TO PROVIDE LEGAL
        REPRESENTATION TO CONSTRUCTION INDUSTRY CLIENTS
                 ON A REFUNDABLE FLAT FEE BASIS

     WASHINGTON, D.C. -- A group of 17 attorneys, who practice in
13 different cities, will be allowed to offer legal
representation to construction industry clients on a refundable
flat fee basis, under a proposal cleared today by the Department
of Justice.  

     The 17 attorney's proposal responded to concerns expressed
by some in the construction industry that traditional legal fee
arrangements create incentives for attorneys to prolong and
intensify disputes.  In it, the attorneys sought to provide legal
services for a refundable flat fee where each participant in a
construction project is represented by a member of the group who
has agreed to represent its client on a refundable flat fee
basis.  The fees would be refundable in full if, at either
client's discretion, litigation or arbitration was necessary to
resolve disputed issues.  As a result, each attorney would know
that all other counsel had the same incentives to resolve
disputes by means other than litigation or arbitration.

     In considering the plan, the Antitrust Division noted that
the group contained only 17 of the several thousands of attorneys
who represent construction industry clients in this country, each
participating attorney would remain free to negotiate his/her own
flat fee, and each attorney would be allowed to withdraw from the
group or to join other joint selling programs while remaining a
member of the group.  Recognizing these factors, Joel I. Klein,
Acting Assistant Attorney General in charge of the Antitrust
Division, said that "the proposed conduct does not raise any
competitive concerns."

     Klein also stated that "to the extent that utilization of a
returnable flat fee structure reduces legal costs...construction
industry participants will secure benefits without having to
sacrifice any competitive options."

     The Department's position was stated in a business review
letter from Klein to counsel for the group.

     Under the Department's Business Review Procedure, an
organization may submit a proposed action to the Antitrust
Division and receive a statement as to whether the Division will
challenge the action under the antitrust laws

     A file containing the business review request and the
Department's response may be examined in the Legal Procedure Unit
of the Antitrust Division, Suite 215, Liberty Place, 325 7th
Street, N.W., Department of Justice, Washington, D.C.  20004. 
After a 30-day period, the documents supporting the business
review will be added to the file.
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