Billing Rates

Overbilling Gone Wild: Paying the (DLA) Piper

By

Opening a legal bill from DLA Piper?

Here at Above the Law, we ❤ DLA Piper. The firm makes for great copy; there’s always something funny, ridiculous, or salacious going down over there.

In fairness to DLA Piper, the craziness might not be that high on a per capita basis. DLA Piper is one of the largest law firms in the world. In the most recent Global 100 rankings, DLA took second place in both total revenue and attorney headcount.

Many of the DLA Piper stories are on the lighter side. But this latest one — involving serious allegations of overbilling, apparently supported by internal DLA emails saying things like “churn that bill, baby!” — is no laughing matter….

double red triangle arrows Continue reading “Overbilling Gone Wild: Paying the (DLA) Piper”

25 Comments

Buying In: An Interview with an In-House Insider (Part 4)

By

Over the last three weeks, we have heard from an In-House Insider, an opinionated source of insight into Biglaw-client relations — see here, here, here, and below. As with the three prior installments, the only changes I made to the Insider’s words were those done to protect their identity, and Insider was given the opportunity to revise their points once I added the questions and commentary. Again, I thank Insider for the candid observations and thoughtful opinions on these core issues….

AP: Any serious observer of Biglaw can see that firms continue to struggle adapting associate development to the new state of Biglaw-client relations. What can Biglaw learn from corporate clients like yourself on that front?

double red triangle arrows Continue reading “Buying In: An Interview with an In-House Insider (Part 4)”

5 Comments

Buying In: An Interview with an In-House Insider (Part 3)

By

Over the last two weeks, we have heard from an In-House Insider, an opinionated source of insight into Biglaw-client relations — see here, here, and below. As with the two prior installments, the only changes I made to the Insider’s words were those done to protect their identity, and Insider was given the opportunity to revise their points once I added the questions and commentary. Again, I thank Insider for the candid observations and thoughtful opinions on these core issues.

AP: How firms are viewed from a value perspective is often very difficult to gauge from the outside. What criteria do you use to determine if a firm is delivering services to your company appropriately from a billing perspective?

double red triangle arrows Continue reading “Buying In: An Interview with an In-House Insider (Part 3)”

6 Comments

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

By

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….

double red triangle arrows Continue reading “Buying In: An Interview with an In-House Insider (Part 2)”

6 Comments

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

By

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?

double red triangle arrows Continue reading “New Data on Hours, Billing Rates, and Corporate Legal Spending”

2 Comments

Buying In: An Interview with an In-House Insider (Part 1)

By

Now that bonuses, year-end collections, and holiday parties are behind us, it is helpful to remind ourselves (early on in the new year) that it is (paying) clients that make everything possible for Biglaw firms. A few months ago, I was the fortunate recipient of some illuminating correspondence from a Biglaw refugee turned in-house counsel, offering a “customer’s” take on what is both right and wrong with the “current law firm service delivery model.” Because I truly believe in the importance of this column offering an anonymous outlet for informed discussion of Biglaw-related topics (see my posts detailing my conversations with Old School Partner and Jeffrey Lowe), I offered to make my correspondent the resident In-House Insider.

Agreement was not long in coming, together with yet more astute observations about Biglaw. For our initial “discussion,” I have (similarly to how I handled the Lowe interview) added questions and some brief commentary to our Insider’s points, and share this written interview with you. The only changes I made to the Insider’s words were related to their identity, and the Insider was given the opportunity to revise their responses once I added the questions and commentary. I hope we can continue to benefit from this In-House Insider’s perspective in the future. For now, I definitely appreciate when I get contacted by Biglaw-related personalities looking to discuss the issues raised in my column, and share their thoughts with this audience. Without further ado….

double red triangle arrows Continue reading “Buying In: An Interview with an In-House Insider (Part 1)”

2 Comments

Quote of the Day: But How Much Do They Charge?

By

The client always has more leverage but certainly, for the high-end work, the firm is calling the shots.

– Kent Zimmermann, a consultant with Zeughauser Group, commenting on the premium hourly fees charged by Biglaw attorneys in sought-after practice areas like mergers and acquisitions, corporate finance and securities, white-collar defense, and litigation.

(That’s interesting, but what were the highest and lowest rates for partners and associates in 2012? We’ve got that info, and more, after the jump.)

double red triangle arrows Continue reading “Quote of the Day: But How Much Do They Charge?”

7 Comments

Inside Straight: What Really Is Billable?

By

During the decades that I worked in Biglaw, I occasionally felt put upon by clients.

“You won’t pay for travel time? Why not? I’m not flying to Philadelphia for my health. And I’m sure not on vacation. If you want me to travel to Philadelphia, then you pay for the time I kill making the trip.”

But many clients felt very differently about it.

“If you’re doing productive work on my matter, then I’ll pay. If you’re flying around the country reading a novel, then I won’t pay. You surely don’t expect us to pay for time that you choose to make unproductive?”

[Or, in some situations: "If you want to handle a matter that's based in Philadelphia, then you eat the time (and travel costs) of getting there. If that's not acceptable to you, then we'll hire a Philadelphia firm. Do you want the matter?"]

These discussions strike me as fair fights. There are things that law firms plainly should not charge clients for, things they plainly should, and the middle ground, where fights are arguably fair. Today, I’m walking the middle ground . . . .

double red triangle arrows Continue reading “Inside Straight: What Really Is Billable?”

16 Comments

Legal Fee Voyeurism: American Airlines’s Big-Time Bankruptcy Bills

By

American Airlines: something bankrupt in the air.

Complaining about air travel has become a cliché — but it’s still fun. The other night, while flying out to San Francisco for an event I’m doing on Monday (to which you’re invited), I was delayed by two and a half hours — due to a plane turned “biohazard.”

My experience — with United Airlines, which I generally like — pales in comparison to what the novelist Gary Shteyngart experienced recently with American Airlines. He wrote about in a New York Times piece that’s horrifying and hilarious.

But some folks have much warmer feelings for AA — namely, the lawyers and law firms that are making millions from the American Airlines bankruptcy case. Let’s find out how much they are seeking in fees….

double red triangle arrows Continue reading “Legal Fee Voyeurism: American Airlines’s Big-Time Bankruptcy Bills”

8 Comments

Buying In: Partner Paydays (Part 2)

By

The recent survey on partner compensation conducted by Major, Lindsey & Africa, which I discussed last week, is full of interesting information. First off, I never really knew how many Biglaw partners there are. The answer? Around 75,000, which includes partners from all firms ranked on the Am Law 200, NLJ 350, or Global 100 in the last five years. Throw in another 1,000 or so partners who were Biglaw partners but left to form high-end boutiques — not included in the survey, but I consider them Biglaw partners since they typically work for similar clients — and you still have a pretty small number relative to the number of lawyers in the world. The figure of 75,000 amounts to less than two years’ worth of new U.S. law school graduates.

Very interesting, especially considering the forty-year-or-so age spread between active partners. Seriously, how realistic is it for any one law graduate (irrespective of pedigree) to think they will beat the odds and eventually make partner? So many things need to go right — it is amazing.

Here’s one surprising aspect of the MLA survey….

double red triangle arrows Continue reading “Buying In: Partner Paydays (Part 2)”

16 Comments
Page 1 of 3123