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In Search of Perfect Client Service Why lawyers don't seem to get it

Are Associates Worth $600 Per Hour?

Posted in Commentary

$600 (bleeping) per hour?   (Sorry, I’m from Illinois.  It’s our water.) 

Blago humor aside, let me draw your attention to this Wall Street Journal Law Blog post.   From the Journal:

Yesterday, Judge Chin, in a polite and judicious order, asked Dewey to provide a bit more information on its fees:

It is difficult to evaluate the reasonableness of the hourly rates for most of the lawyers listed. For example, [five attorneys] — all simply described as “Associate” — have substantial hours billed at hourly rates of, respectively, $605, $605, $550, $605, and $605. Without knowing anything about their backgrounds, it is difficult for the Court to determine whether the requested hourly rates are reasonable.

Perhaps if one of the associates also has a Ph.D. in astro-physics and the case requires that scientific expertise, one of the associates might be worth it.  But the question for all of you-in-house lawyers–do you think associates are worth these rates?  Does this question posed by the Court influence your answer?

Is it reasonable to bill at hourly rates of $700 to $950 to $950 for partners and $425 to $550 to $605 for associates in the context of a securities receivership? Is it reasonable to bill at hourly rates of $285 for summer associates & $175 to $275 for paralegals?

Ever wonder how these rates can add up?  The Journal reports that Dewey is seeking $2.2 million for 20 days worth of work, $100,000 per day.  I’m in awe.

  • brian

    Securities work is expensive for good reasons. First, few attorneys specialize in it. Second, it is prone to substantial malpractice claims and subject to high insurance premiums. Second, reviewing securities disclosures is excruciatingly boring and requires 14 hour days of utter fine print tedium to do it. Finally, the securities laws are an inpenetrable thicket subject to state and federal case law, state and federal rules/legislation, quasi-state regulatory and licensing entities and more. If your standard real estate or corporate partner gets 400-500, then the securities guys should get more.