Legal Fees

In Defense of the Billable Hour

The other day I heard a story about a furniture store in Toronto that was known to cater to the wealthy. The owner purchased an unusual item in Vietnam for twenty dollars. He brought it back to his store and promoted it as a one-of-a-kind item from an exotic destination. He sold it to someone with more money than brains for $10,000. The person who told me the story swears that she has fifth-hand knowledge of the incident and that it is absolutely true. Having shopped in that store once, I do not doubt it.

Welcome to the concept of value billing. Things are worth what people are willing to pay for them.

Law Firm Management

Targets (On Our Backs)

Law firms give lawyers minimum billable hours targets to meet. There is nothing wrong with setting expectations, I guess. The theory is that you make the lawyers aware of the firm’s expectations, and they then work to achieve them. Transparency is good.