Compelled to try to control legal costs, general counsel across the land are hypnotically drawn to billing-rate discounts. 'Eight percent off your standard rates' mesmerises those who have to account for spending on outside counsel. "Look what we've saved!" they proclaim. Well, maybe.I am suspicious of discounts on legal fees as a cost-control tool. Ultimately they do not alter the dysfunctionality of hourly billing. Law firms still enjoy a cost-plus arrangement, inducements to pad out law firm bills are everywhere and in-house lawyers must still scrutinise long bills. Several other aspects of fee discounts are problematic, too.
May 07, 2008 at 08:16 PM
1 minute read
The original version of this story was published on Legalweek
Do billing-rate discounts really control costs? Rees Morrison finds there is less than meets the eye when it comes to discounting legal fees as a cost-control tool
Compelled to try to control legal costs, general counsel across the land are hypnotically drawn to billing-rate discounts. ‘Eight percent off your standard rates’ mesmerises those who have to account for spending on outside counsel. “Look what we’ve saved!” they proclaim. Well, maybe.
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