
Law And The Judiciary | |
Is Market Capping Lawyers' Fees? |
Despite the huge legal fees involved in current anti-tobacco litigation, data show that fees paid to lawyers have stabilized. After double-digit growth during the 1980s, growth in law firm revenues in recent years has been more or less flat, observers say.
While total revenues at U.S. law firms rose 7.4 percent between 1995 and 1996, that was a far cry from the 1980s -- when they were raking in annual increases between 12 percent and 19 percent a year. Experts say the reasons for the trend range from new technologies that reduce paperwork to clients' closer scrutiny of billing practices. A cottage industry has emerged that subjects law firms to the kind of "utilization review" that is now routinely done on medical bills. These firms second-guess legal bills by applying computer software that detects everything from padded time sheets and long-distance bills to excess copying charges. And other currently popular cost-cutting measures, such as retainers and flat rates, were the norm before 1960. Source: Edward Felsenthal and Paul M. Barrett, "Not So Fast: It Only Seems Like Legal Fees Are Still Skyrocketing," Wall Street Journal, May 27, 1998. |
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