Billing rates see small increase

December 8, 2010
Back to TopCommentsE-mailPrintBookmark and Share

The National Law Journal’s 2010 Law Firm Billing Survey is out and it shows that firms are still increasing their billing rates, but not as much as in years past.

The average firm-wide billing rate went up by 2.7 percent this year, the second year in a row that rate increases grew by less than three percent. Firms used to increase their billing rates as much as eight percent when the economy was better in the mid-2000s.

Of those firms responding to the survey, 75 percent increased their rates this year; eight percent left their rates the same; and 17 percent lowered their average billing rates.

The survey was sent to the 250 largest law firms in the nation. Three Indianapolis-based firms made the NLJ’s 250 largest law firms list – Baker & Daniels at 152, Barnes & Thornburg at 85, and Ice Miller at 181 – but only Barnes & Thornburg listed its rates.

Barnes reports it has 494 attorneys in its 11 offices around the country with the average firm-wide hourly billing rate of $367; its median rate is $375.

The three firms did provide some information on how they bill rates. They all report they have discounted and blended variations on the billable hour. As alternative billing methods, Baker & Daniels cites hybrid, retrospective, fixed or flat, and contingent; Barnes and Ice both list hybrid, fixed or flat, and contingent.

Cincinnati-based law firms Frost Brown Todd, which merged with Locke Reynolds in early 2009; and Taft Stettinius & Hollister, which merged with Sommer Barnard in May 2008, also participated in the survey. Frost Brown Todd lists 404 attorneys and an average firm-wide billing rate of $279. Its median rate is $280. It reports that 76 percent of its revenue is generated through variations on the billable hour, which are discounted, blended, or “other.” The firm doesn’t have alternatives to the billable hour.

Taft reports 286 attorneys and its average and median firm-wide billing rates to both be $315. It says 40 percent of its revenue is through discounts on the billable hour. Taft reports 20 percent of the firm’s revenue is obtained through alternative billing methods: hybrid, fixed or flat, and contingent.

Frost is ranked 111 on the NLJ’s 250 largest law firms list; Taft is on the list at 149.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. Oh my lordy Therapist Oniha of the winexbackspell@gmail.com I GOT Briggs BACK. Im so excited, It only took 2days for him to come home. bless divinity and bless god. i must be dreaming as i never thoughts he would be back to me after all this time. I am so much shock and just cant believe my eyes. thank you thank you thank you from the bottom of my heart,he always kiss and hug me now at all times,am so happy my heart is back to me with your help Therapist Oniha.

  2. Hail to our Constitutional Law Expert in the Executive Office! “What you’re not paying attention to is the fact that I just took an action to change the law,” Obama said.

  3. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  4. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  5. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

ADVERTISEMENT