Summary: BTI Consulting Group’s latest survey suggests that law firms that are able to produce top quality service to their clients can expect top quality money in return.
Clients may have to be more willing to pay the big bucks to get their needed complex and bet-the-company work done. The demand has gone up resulting in the amount that law firms charge to go up. In a survey done by the BTI Consulting Group of over 300 individual interviews of CLO and general counsels at Fortune 100 companies, they found that the highest rate is now 2.9 times the average amount that clients pay.
Six reasons that clients say they are willing to pay higher rates for are an attorneys understanding of business risk, command of the solution or path to a solution, unmatched commitment to help, clear grasp of the magnitude of the company’s level of risk, anticipation of the needs and obstacles, and a willingness to discuss strategies and actions that will need to be taken before being hired for the job.
Read Firm Billing Rates Compared to learn more.
An attorney and law firm that could fill these requirements was charging $2,000 an hour last year, up from $1,600 in 2014. Global General Counsels are paying this rate for bet-the-company IP work, enterprise level M&A litigation, large-scale government investigation, and defense against high-profile activist hedge funds.
See Industry Report Breaks Down Attorney Billing Rate Trends by Practice Areas.
Law firms that can meet the criteria are already known by the top legal decision makers, with them admitting that they know who to call on should an ultra-high risk matter arise. These clients already have a relationship with the top law firms that are able to deliver results.
These top hourly rates leave some wondering what rates this year will produce. Do you think the new rate will reach $3,000? Tell us what you think will happen this year in the comments below.
To learn more about hourly rates, read Industry Report Breaks Down Attorney Billing Rate Trends by Practice Areas.
Photo: millman.info