The Elephant in the Room - Fees

I'm sure by now that you have seen the news story that some attorneys have now raised their hourly rates to $1000 and beyond. (I think one partner quoted in the WSJ article said it well when he called that the "vomit point" for most clients.) Makes my $900 rate seem like a bargain, eh? Just kidding.

I imagine there is a time for a lawyer who charges $1000+ per hour - the bet-the-company scenario, and probably then only for the Fortune500. And, granted, that is generally what these attorneys do. Nonetheless, there has been a lot of upset over the last decade from general counsels who feel that their outside legal bills are being padded to pay the astronomical salaries of new associates (and the marble floors, skyline views, flatscreen TVs unwatched in the lobby, etc.).

I think the press given to this issue lately will be a good thing. I think law firms need to look at skyrocketing overhead and perhaps realize that they could be a lot more economical. I think clients need to insist that their attorneys work with them in setting a budget for the matter, while certainly understanding that some things can be difficult to anticipate. And I think that more clients - and legal departments - need to give more consideration to solo and small firm lawyers, who have the expertise to handle almost anything, and the overhead to handle it without billing a year's worth of revenue.