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.