In-House Counsel

For comparable lawyers, fluctuations of billing rates across different cities?

By Rees Morrison

Do some law firms charge different rates in different cities for partners who have the same levels of experience? I have heard that some law firms have offered to implement a cap on the rates of their higher-end partners (See my post of Dec. 31, 2006: cost of living and partner rates.). More appropriately for this blog, what would the repercussions be if a general counsel decreed that the law department would not pay more than the median billing rate of any group of similar partners?

A policy such as this might incur higher travel costs, assuming distant partners with lower rates chip in, but that is a small price to pay (See my post of Sept. 21, 2005: law departments can internally arbitrage compensation differentials; and June 15, 2006: the use of associates from lower-cost cities.). To start this technique, ask for the rates of comparable lawyers in different locations.

Full post as published by Law Department Management on April 29, 2009 (boomark / email).