Great article by Sara Randazzo in today’s Wall Street Journal, Legal Fees Cross New Mark: $1,500 an Hour. Set aside the wisdom of such rates when firms provide discounts on demand and realization rates average near 80%. What stands out for me is the utter hubris of this statement by John Altorelli, previously of Dewey fame and now speaking for DLA Piper:
We just raise them every year.
There must be a law somewhere that requires firms to do this. I missed that day in law school, apparently. But again, set aside the wisdom of increasing rates every year.
It makes on wonder whether lawyers understand the concept of public relations? Does DLA understand that many clients don’t like the “we just raise them every year” mantra they hear from outside counsel and instead think they, the client, get to decide whether rates increase or not?
I used to ask why clients didn’t say no to rate increases. Now, more and more clients are doing so. I wonder how many more will do so when they see rates like these.