Evan Chesler, head of the old line New York law firm Cravath, Swaine & Moore L.L.P., caused jaws to drop in early January when he challenged lawyers to dispense with the hourly billing system that had sustained the industry for generations.
He argued: the system rewards inefficiency, frustrates clients and has little economic logic.
Chesler verbalized what many law-firm leaders had been silently mulling for years and triggered an enormous debate over the potential benefits of alternative billing arrangements, such as flat fees, or discounted rates linked with incentive payments for favorable results.
But to what degree has the industry actually changed the way it is charging clients?
So far, the answer appears to be not so much.
Full Article and Source:
Closing arguments on the billable hour
See also:
Billable Hour System
He argued: the system rewards inefficiency, frustrates clients and has little economic logic.
Chesler verbalized what many law-firm leaders had been silently mulling for years and triggered an enormous debate over the potential benefits of alternative billing arrangements, such as flat fees, or discounted rates linked with incentive payments for favorable results.
But to what degree has the industry actually changed the way it is charging clients?
So far, the answer appears to be not so much.
Full Article and Source:
Closing arguments on the billable hour
See also:
Billable Hour System
5 comments:
This is a good time to look at the "Bill, bill, bill" problem.
But don't hold your breath!
I love this guy!
Evan Chesler, watch your back! The organized bench and bar will be gunning for you!
Evan Chesler has me raising my eyebrows in disbelief.
My oh my, suggesting to those who want to continue to unjustly profit by dragging out cases for the purpose of attorney billing by the minute.
I remember those dreadful days that turned into years, dreading to go to the mailbox, pounding rapid heartbeat, cold sweats.
What other business takes billing to the extreme than lawyers? None. Not even doctors.
They've spent a lot of time and effort making the world work in the manner that profits them and they're not about to change it now -- unless they're just plain shammed into it.
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