DC Billing Rates Second Only to New York

A massive study of billing rates shows that law firm partners in Washington charge the second-highest hourly rate in the nation.

On average, partners here bill just over $600 an hour, second only to New York City, where partners charge close to $700 an hour, according to the study by CT TyMetrix Inc. and The Corporate Executive Board Co.

To arrive at the numbers, the companies looked at bills sent to 36 large corporate clients between 2007 and 2009—$4.1 billion worth of invoices from more than 3,500 law firms and 90,000 individual billers.

Associates in Washington are a relative bargain, the study found, billing about $375 an hour on average—a bit less than those in Los Angeles and a hair more than in San Francisco.

Also, between 2007 and 2009, Washington lawyers hiked their billing rates by an average of 10.5%. Rates rose the most in Dallas—up by 21.9%—and least in Detroit, where the increase was a mere 2%.

The study found that 85% of lawyers nationwide charge clients different rates for the same work.

Comments

[Darren Chaker]

Although the billing rates appear like a lot to the average person, the client pays for knowledge. In some instances, the one $600 hour could be a bargain if a legal issue at a less expensive firm would require a paralegal ($125-175/hr.) to do some basic research, an associate ($250-$300/hr.) for a draft, and then a partner ($400/hr.) to edit and revise the pleading/memo. Thus, the client pays for knowledge (and status)of the attorney. If a $600 attorney can do the work in a more efficient and succinct manner, due to his/her knowledge, then it may be worth it.

Personally speaking, I was recently represented by Tim Coates http://www.gmsr.com/attorneys_profile.cfm?id_attorney=1001 of the stellar Los Angeles based appellate firm, Greines Martin Stein & Richland who affirmed much of a SLAPP ruling in my favor. However, for trial counsel, Lathrop & Gage (Los Angeles office) was my pick.

Nonetheless, spending tons in litigation for Fortune 500 companies often yields far more in revenue or prevents large verdicts against the company, dismisses highly costly class action cases, etc. In short, I've always seen it as a cost/benefit analysis.

Darren Chaker