Penn State’s Legal Costs in Sandusky Scandal Surpass $49 million

 Posted by at 5:30 pm  BigLaw  Comments Off on Penn State’s Legal Costs in Sandusky Scandal Surpass $49 million
Sep 202013
 

As we reported at the end of 2011, the Jerry Sandusky sex scandal was supposed to cost Penn State a few million in legal fees, but the cost to date has now reached $49.4 million for legal and consulting services.  This recent figure represents work by more than three dozen firms that charged Penn State between November 2011 and June 2013. With the university providing monthly updates, this means that the cost has increased by almost $1.7 million since June of this year alone. Continue reading »

The Legal Cost of Corruption Clean-Up

 Posted by at 11:17 am  BigLaw  Comments Off on The Legal Cost of Corruption Clean-Up
Apr 202012
 

An article in the Los Angeles Times this week investigated the enormous amount of legal fees that cities in California have racked up over the past several years while dealing with corruption scandals.  Long after the officials are dishonorably discharged from their positions (and often indicted), many cities are still facing sky-high legal bills in the wake of municipal corruption – a tab that tax payers are rightfully unhappy about. Perhaps surprisingly, most of the legal fees aren’t paid to cover the representation of the disgraced city official (generally, they have to pay for their own attorneys), but for “defending the city from related lawsuits or complying with requests from investigating agencies.”  Continue reading »

The Rich [Lawyers] Get Richer

 Posted by at 10:45 am  BigLaw  Comments Off on The Rich [Lawyers] Get Richer
Apr 182012
 

The disparity in legal fees charged by the highest-billing lawyers and those at the bottom is growing larger, reports Thomson Reuters.  The results from a 4 year study spanning 2007-2011 conducted by TyMetrix Legal Analytics and Corporate Executive Board gathering data from 4,000 law firms, including 120,000 individual attorneys, were released on Monday.  The finding of an average increase in billing rates of 4% from 2009 to 2011 is certainly unsettling; however other study results are arguably far more alarming. Continue reading »

A Moment of (Half) Truth for Legal Billing

 Posted by at 9:33 am  BigLaw  Comments Off on A Moment of (Half) Truth for Legal Billing
Mar 202012
 

Acknowledging the dramatic changes to the legal market over the last few years, an attorney recently wrote an advice column on the blog Above the Law to his fellow lawyers: in a buyer’s market, firms ought to make some concessions to clients.  By not charging clients for the little things, attorneys will garner the goodwill of their existing clients, and attract new ones, or so the wisdom goes. Continue reading »

Study Finds Hourly Billing Rates Increased in 2011

 Posted by at 2:23 pm  BigLaw  Comments Off on Study Finds Hourly Billing Rates Increased in 2011
Mar 142012
 

According to a recent study conducted by the Daily Report, hourly billing continues to be the most common billing model on legal invoices.  Additionally, hourly rates of partners and associates increased in 2011. 

The Daily Report collected approximately 6,000 hourly rates from 2011.  A majority of these rates were collected from Chapter 11 bankruptcy filings in five U.S. bankruptcy courts, including the Southern District of New York and the District of Delaware. Continue reading »

Legal Fees for Fannie Mae and Freddie Mac Reach $100 Million and Counting

 Posted by at 9:13 am  BigLaw  Comments Off on Legal Fees for Fannie Mae and Freddie Mac Reach $100 Million and Counting
Feb 232012
 

The New York Times recently reported that the legal cost to defend three former executives of Fannie Mae and Freddie Mac is approaching $100 million.  Taxpayers have already covered almost half of the tab.     

The inspector general of the Federal Housing Finance Agency, the entity overseeing both companies as their conservator, is trying to protect taxpayers from further unnecessary and excessive costs.  In its report on the matter, the inspector general remarked that when the companies were taken over in September 2008 their legal contracts could have been repudiated but were not.  As a result, taxpayers are bearing the costs ever since.  The report suggests that these legal fees should be the subject of Congressional oversight to control costs. Continue reading »

Facebook Seeking $84K in Legal Fees Stemming from Ownership Dispute

 Posted by at 11:49 am  BigLaw  Comments Off on Facebook Seeking $84K in Legal Fees Stemming from Ownership Dispute
Feb 062012
 

The Los Angeles Times recently reported that Facebook is firing back at Paul Ceglia, a New York man claiming to own a stake in Mark Zuckerberg’s social networking site. Facebook would like Ceglia to pay the legal fees it incurred defending his claim that he owns half of Zuckerberg’s multi-billion dollar share. Continue reading »

Alternative Fee Arrangements Gaining Popularity Among Large and Boutique Firms

 Posted by at 9:53 am  Alternative Fee Arrangements, BigLaw  Comments Off on Alternative Fee Arrangements Gaining Popularity Among Large and Boutique Firms
Jan 202012
 

The Washington Post recently reported that the use of alternative fee arrangements in law firms has not only become much more prevalent but has also contributed to an increase in client billing.   The Post notes the success of “flexible” and efficient billing strategies among small law firms and the digression from the individual hourly rates system. Continue reading »

Police Litigation in Hackensack Generates Millions of Dollars in Legal Fees

 Posted by at 1:33 pm  BigLaw  Comments Off on Police Litigation in Hackensack Generates Millions of Dollars in Legal Fees
Dec 152011
 

While many municipalities in New Jersey are struggling with dramatic cuts in state municipal aid, the City of Hackensack has particularly felt the effects within the last two years.  The City of Hackensack’s legal bills have risen over the past two years to astronomical numbers, particularly because of the glut of legal problems generated by police-related cases.   In 2010, over $1.4 million was paid by the city in legal fees, and in 2011, an estimated $1.7 million was paid out, though the 2011 figures are subject to change as we near the end of the fiscal year.  Continue reading »