Bigger law firms, even bigger bills

5 responses

  1. Kul Mani says:

    The $275/hr for paralegal service billed to client is not what is actually paid to the paralegal assistant. I believe they are paid significantly less ($30/hr?). Even at the higher range of $50/hr for some, it is great margin for the law firm and goes a long way to cover the fixed overhead!

  2. Mohan says:

    After all, when a capitalist economy thrives on the principle of ‘demand and supply’ why are you complaining about big firm and big clients. It is like asking – does Bill Gates or other billionaires deserve what they have. Will they have worked for it.

    If a Partner with 25 years experience can demand a higher fee, so be it!

    If any one cannot afford their fee go to smaller ones which may be more affordable and efficient.

  3. Mark McQueen says:

    Agreed. If the market will bear the freight then so be it. If clients believe that the very senior law partners are worthy of an income of more than $2 million a year, ala bank CEOs, then that’s what they should earn. It is a private business / partnership, after all.

    I was making the point that – soon enough – there won’t be enough meaty work to support the fee rate card and the larger firms will have to restructure themselves. But, for now, the sun is certainly shining.


  4. Bill says:

    While partners at the big firms are reaping great rewards…this firm has a different perspective on saving legal fees: have the lawyers and the acquisition team work collaboratively to keep transaction issues from evolving into legal issues. There’s an excellent article speaking to saving transactions costs as well as a bonus–a very amusing song parody about “My mind, my time, I’m billing you.”

  5. sdw says:

    Uh, Mark? You’re not actually suggesting that there are only seasoned lawyers with sophisticated transactional experience at bug firms,are you?

    There are some of us from big firms who realize that the addressable market for the big firm business model is shrinking, and that it won’t work for the remaining client base. It’s why we formed Venture Law Associates LLP, which is aimed at SMEs and mid-sized businesses. Which, incidentally, represents 97% of the business pie in this country (and a sizeable chunk of your portfolio).

    Big firms cannot and do not support clients who meanless than $30-50k a year in recurring revenue. Some are quite open about it, others more coy. Lots of other options out there and there will be more as the market right-sizes itself.

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