Billable hour rates

Billing That Much For Contract Attorneys Isn’t ‘Unusual’ or ‘Untoward,’ It’s Obscene

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The fact that the billing rates of contract attorneys are in excess of what the law firm pays them is not unusual or untoward. That’s to cover overhead and have a profit built in.

– Ira Press, a partner at Kirby McInerney, offering commentary on the Citigroup billing frackas that’s made headlines of late. On average, the firm billed out contract attorneys who worked on the matter at about $465 an hour, but likely paid them just $60 to $75 an hour for their “special expertise” and services. Ted Frank, aka the Class Action Avenger, is not happy about all of this.

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Seeking Biglaw Billables: $1,150/Hour OBO!

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[Think of hourly fees] as the equivalent of a sticker on the car at a dealership. It’s the beginning of a negotiation…. Law firms think they are setting the rates, but clients are the ones determining what they’re going to pay.

– Ward Bower, a principal at the legal consultancy Altman Weil, commenting on the ever-growing price tag for the Biglaw billable hour — and the deep discounts that are available to clients who simply refuse to pay full freight.

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Morning Docket: 03.26.13

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* Amanda Knox is free, but could be retried. Can’t wait to see her Craigslist roommate ad. [New York Times]

* The budget deal still screws over the courts. [National Law Journal]

* You know, in 20 years, Republicans are going to be telling us that the federal government’s pot taxes are too high. [Washington Post]

* DLA Piper might get in trouble from bragging about the size… of its bills. [Dealbook]

* Michele Bachmann is under investigation for being a demon spawn of the fifth circle from… oh, wait sorry, they’re just looking at her use of campaign funds. [ABC News]

* Is anybody else unreasonably excited to hear what offensive, homophobic remark Justice Scalia makes today? [National Review]

* With everybody looking at gays, I wonder if this will be the day for the Supreme Court to declare the end of racism against white people while doing nothing about racism against black people with a 5-3 (Kagan recusing) decision on Fisher. [SCOTUSblog]

* So, this BlackBerry thing doesn’t seem to be going very well. [Forbes]

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Buying In: An Interview with an In-House Insider (Part 2)

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Last week I spoke with an In-House Insider, a Biglaw refugee turned in-house counsel. You can see what our Insider has to say about the state of Biglaw and client relations here and below.

As with the initial installment, the only changes I made to the Insider’s words were those done to protect their identity, and the Insider was given the opportunity to revise their points once I added the questions and commentary.

Again, I thank the Insider for the candid observations and thoughtful opinions on these core issues. Now, on to the discussion….

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New Data on Hours, Billing Rates, and Corporate Legal Spending

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What does 2013 hold for the world of large law firms? Let’s look into our crystal ball.

Actually, scratch that. Making predictions is a tricky business. Sometimes we’re right — like when we predicted robust bonuses out of Cravath, based on their large partner class — but sometimes we’re wrong.

For now, let’s keep our powder dry, and instead check out historical data about hours, billing rates, and corporate legal spending. Can we gain any insight into the future by looking back over the past?

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Non-Sequiturs: 12.14.12

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* Joe Patrice reposted this on his site and I’m linking to it because it’s a great look at the rhetorical weaknesses of the pro-gun argument. It’s old, so you can’t say that he’s being reactionary to the current tragedy. [Recess Appointment]

* Here’s a very good takedown of the self-serving law school rankings from Loyola Law School (LA) Professor Theodore Seto, who magically finds that Loyola Law is the 25th best law school for becoming a Biglaw partner. [Witnesseth]

* Is the procedural posture of same-sex marriage sexy? [Opinionator / New York Times]

* The jury system is dumb. [The Republican]

* And so is arguing over rate increases, according to Susan Hackett; it’s just a distraction from the real conversation that needs to take place about the appropriate pricing of legal services? [Legal Rebels / ABA Journal]

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