Legal News

Recession hits GCs, especially outside counsel

By Richard Binder

Of all the budget issues confronting general counsel -- and there are plenty -- outside counsel fees and their lack of predictability are the two biggest worries, according to a November 2008 survey of 115 general counsel by Altman Weil. Nearly three-quarters of the respondents reported that they are implementing 2009 budget cuts of between 6 percent and 35 percent.

The study reported that the No. 1 target for general counsel spending cuts is outside counsel. More than half intend to decrease the use of outside lawyers in 2009.

The cutting is already here. Companies are demanding ever more discounted hourly rates.

"We are watching every nickel we spend," said Michael Rowles, general counsel at Live Nation Inc., a Los Angeles-based concert promoter. The company's legal needs aren't slowing down -- its proposed merger with Ticketmaster Entertainment Inc. is pending -- yet the company has aggressively pushed for steep discounts on hourly rates, Rowles said, so far without complaint from its firms.

For more on cuts, discounts, and alternative fees, read the full NLJ story.

Full post as published by Legal Pad | LA on April 06, 2009 (boomark / email).