This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

As Law Firm Rates Rise, Corporate Legal Teams Must Maintain Value For Cost

ARLINGTON, Va., June 28, 2012 /PRNewswire/ -- As top partner rates rise to more than $1,000 per hour, in-house counsel may find themselves hard pressed to control their outside counsel spending, according to the 2012 Real Rate Report, an analysis of more than $7.6 billion in law firm billings.  The report was published by Corporate Executive Board (CEB) (NYSE: EXBD), a leading research and advisory services company, and TyMetrix Legal Analytics, part of Wolters Kluwer Corporate Legal Services.  Insights in this report give general counsel a new resource to negotiate rates with law firms, help them understand what they're paying for and how to make smart trade-offs through options such as alternative service providers, smaller markets or smaller firms.

"Despite the recent recession, rates at top law firms continue to grow, often much faster than legal budgets at corporations," said Brian Lee, managing director, CEB. "However, the Real Rate Report shows that cost control doesn't have to be a losing battle.  By using the information in this report general counsel can find out if they are paying the right rate for their legal services or if there is better value elsewhere.  CEB research indicates that by simply looking at smaller markets or smaller firms, general counsel can often find high-quality advice at a much more reasonable cost than they could imagine.  Essentially, they won't be paying for premier law firm office space in the most expensive cities in the country."

The Real Rate Report also reveals that while many general counsel assume that more work or longevity with a single law firm will earn them a discount, the opposite is true. While companies often reap cost savings when initially concentrating work with a few law firms or reducing the number of law firms they work with, as time passes they often pay higher rates to the law firms they work with most or have used the longest. In order to minimize what general counsel may view as the "creeping up" of law firm rates over time, companies must continue to foster competition between firms and alternative service providers and ensure rates are being examined on a regular basis. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs