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VERBAL QUESTION #4
An explanation of why MWOLFS represent approximately 56 percent of legal matters referred in 1993 and only received approximately 13 percent of fees paid. Will fees paid for work assigned in 1993 reflect percentages of assignments? If not, why not?
Minority and women-owned law firms (MWOLF) received 58 percent of the
There is no direct correlation between numbers of referrals and their dollar
Most recently, for matters with budgets under $50,000, 41 percent of those
The large dollar referrals are generally handled by large firms due to such
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the MWOLF performing at least 25 percent of the work and receiving payments commensurate with the work performed. Such relationships are advantageous to the MWOLFs because they are exposed to and gain experience in matters and issues they may not otherwise be able to handle, either by virtue of inexperience or the limited resources of a small firm.
For the reasons stated above, in 1994, MWOLFs will not receive fees in the same percentage as referrals, but will receive fees commensurate with the work they perform. As you may know, on May 20, 1992, the Division of Legal Services established a goal of MWOLFs receiving 20 percent of the fees generated by new referrals. From May 20, 1992, through April 7, 1994, the Division of Legal Services paid MWOLFs $57,999,683 (28 percent) out of $202,883,141 on all referrals made during that period. Also on May 20, 1992, the Division of Legal Services established a goal of minority and women attorneys in majority firms receiving at least 10 percent of fees paid to all firms. Since May 20, 1992, the Division of Legal Services bas paid minority and women attorneys in majority firms $123,191,173 (24 percent) out of $518,479,578. Thus the Division of Legal Services has exceeded both its 20 percent and its 10 percent goals in its ongoing efforts to promote minority and women outreach.