Billing rates going up

December 2, 2009
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Clients are going to have to pony up a little more cash next year for their lawyers. According to an Altman Weil survey on 2010 billing rates, only about 10 percent of firms surveyed plan to maintain their current billing rates or decrease rates. The average rate increase is projected to be about 3.2 percent.

Many of the firms said they felt pressure from clients to not raise rates, but felt it was necessary because they froze rates in the past few years. Some also said the move toward alternative fee arrangements makes the hourly rate increases “increasingly irrelevant.” A few firms noted the increases they’ll make aren’t nearly as much as they had in previous years.

Some firms will pass along the higher rates only to new clients or in certain practice areas. Associate billing rates will be the mostly likely to see the increase, and a higher rate increase to boot.

“Many firms feel the need to cover their associate costs with rate increases,” said Altman Weil principal Tom Clay. “And because associate rates are lower, increases there may attract less comment from clients than increases at the partner level.”

The AW survey includes comment from respondents regarding why they are or aren’t raising rates. Some interesting ones:

- “Firms need to push back on the clients' unreasonable demands to hold rates at 2008 levels and give a 15% discount off of those rates.”

- “We froze our rates moving from 2008 into 2009. I hear managing partners speaking of freezing rates moving into 2010. We can't sit out two years without changing, so we are going to do so, hoping that client goodwill from last year will cushion us at this year's hike.”

- “We don't even try to raise rates every year. The greedy SOBs that do have antagonized the entire industry to those of us who only seek to raise rates when economically necessary (and PPP isn't economic necessity).”

What’s your firm’s strategy in terms of billing rates for next year? Is increasing rates a better alternative than cutting attorneys for firms looking to find more cash?
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  1. Such things are no more elections than those in the late, unlamented Soviet Union.

  2. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  3. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  4. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  5. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

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