The Canadian Auto Workers’ (CAW) Legal Services Plan, designed to give active and retired autoworkers and their families access to totally prepaid or partially reimbursed legal services, has been in operation since late 1985. Plan members have the option of using either the plan’s staff lawyers, whose services are fully covered by in Canada. A department store is even offering a plan to holders of its credit card.
While many plan members seem to be happy to get reduced-cost legal help, many lawyers are concerned about the plan’s effect on their profession, especially its impact on prices for legal services. Some point out that even though most lawyers have not joined the plan as cooperating lawyers, legal fees in the other referrals who are not plan subscribers and who would therefore pay the firm’s standard rate.
But it is unlikely that increased use of such plans will result in long-term client satisfaction or in a substantial increase in profits for law firms. Since lawyers with established reputations and client bases can benefit little, if at all, from participation, the plans function largely as marketing devices for lawyers who will mean less time devoted to complex cases and a general lowering of quality for clients.
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