Legal Commentary

Altman Weil Survey: Law Firms Are Raising Rates in 2010

By Patrick J. Lamb

Altman Weil has just issues its flash survey on 2010 billing rates. Apparently, many law firms have decided to shoot themselves raise rates in 2010.   The survey reports that 'US law firms project an average overall increase in rates of 3.2%.'  The increase will be higher in bigger firms, an average of 4%. Few firms, just 13.1%, are raising rates across the board. Interestingly, even after many firms laid off associates and froze or reduced salaries, firms are asking their clients to pay even greater increases for associates:

Thirty percent of law firms indicated they would adjust their rates by timekeeper class…. Firms that made their billing rate decision based on timekeeper class were asked to estimate their rate change within ranges for equity partners, non-equity partners, associates, counsel, contract lawyers and paralegals. The largest increase, according to the survey, will be in associate billing rates with 45.5% of firms making an increase in the 4%-6% range and 11.4% making an increase of 7% or more.

Wow.

So clients, how's that working out for you?

Full post as published by In Search of Perfect Client Service on January 12, 2010 (boomark / email).