Biglaw, Billable Hours

How Much Would You Pay For The Very Best Lawyer?

Let's go behind the Biglaw veil and dig into some billing rates.

By  
on

MoneyWhat is the billing rate for the best attorneys in the country? Though some may be loathe to divulge that information, it is a fascinating glimpse behind the veil of Biglaw — hell, half the folks working there don’t know how much their firms rake in for an hour of their work. So when BTI Consulting Group puts out the results of its annual survey getting into the nitty gritty, it is a fun time for all.

The good news, at least if you’re a Biglaw fan, is that the high-water mark went up 20 percent over last year’s top hourly rate. Law360 has the details:

That rate has now reached $2,000 per hour, according to research conducted by BTI Consulting Group, a significant increase from the previous high of $1,600 reached last year and nearly three times the average rate clients pay for outside legal work.

Additionally, 59 percent of corporate counsels at large companies now pay at least one law firm $1,000 per hour, compared to only 39 percent last year, BTI found.

Yowser! You’d best be putting out some quality work product for two grand an hour.

But the in-house counsel are able to justify this raise due to high-stakes cases, the prevalence of which has tripled in the last year:

Skyrocketing rates at the top of the market are a direct result of a drastic uptick in the percentage of companies that now face high-risk or bet-the-company matters — the number has tripled in the past year to 37 percent — according to Michael Rynowecer, president of BTI Consulting.

And the ceiling on billing rates does not appear to have been reached. It may sound shocking, but some industry experts suggest in-house counsel’s tolerance for big bills is growing — just as long as they are attached to senior partners. Tolerance for high rates for junior associates is much lower:

Sponsored

“What I routinely hear from in-house counsel is that for the most senior, expensive partners who are in high demand, although the rates are hard to swallow, in the end, they’re usually well worth it. In fact, some clients say, ‘Don’t tell the firm, but we’d actually pay more than they’re asking for those very senior, sought-after people,’” [legal industry consultant at Zeughauser Group Kent] Zimmerman said.

Phew, I’m glad we haven’t reached the zenith of billing rates. For a second there I thought Biglaw might actually have to make changes to its business model to increase revenue.

What Do The Highest-Paid Lawyers Make An Hour? [Law360]

Kathryn Rubino is an editor at Above the Law. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Sponsored

Topics

, , , , , , ,