On Sale: The $1,150-Per-Hour Lawyer
After analyzing the billing rates compiled from public filings, some tax and trial lawyers are commanding hourly fees of $1,150 or more. Although these hourly rates seem high, law firms offer many discounts and write-offs that lower the amount compared to the standard rates that they have actually had in recent years. These prices should not scare of customers because the client’s are ultimately the ones who are able to determine how much they are going to pay. Haggling is common between clients and big law firms because they continue to push for a lower price due to the current recession. Besides haggling, many of the other clients choose not to work with firms who do not offer discounts.
For many of the lawyers their arguments include that some clients are not worried about the overall price tag, but how many people are working on the project as well as the overall total cost. The idea of having a large gap between the prices listed of a law firm compared to the actual bill that they collect from their clients is not a positive thing. I believe that high billing rates will actually have the clients not be interested or as eager to give their business to law firms due to such high rates.
Written by: Samantha Chin
Source: The Wall Street Journal