Study reveals controversial billing practices at large firms
A new study looking into law firm billings has armed general counsel with information that will help them to negotiate reduced fees.
The study, conducted by legal management consultant firm CT TyMetrix, concluded that more than three out of every four law firms bill different hourly rates to different clients for similar work; in one case – according to the study – a single person charged at a rate of $350 an hour for one client, and $1,000 an hour for another.
The study also found that the rates charged to major corporate clients tended to be significantly lower than the ‘rack rates’: a media partner rate of $340 per hour was compared to the typical ‘rack rate’ of $1,590 per hour.
The study examined over $4 billion in billings from 18.9 million invoices issued between 2007 and 2009. The data was collected from over 50,000 individual billers at more than 4,000 law firms.
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