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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: EXBD

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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