A small Boston law firm has banned the billable hour and refuses to take clients who want to pay by the hour. This is discussed in a recent Boston Globe article. An excerpt is below:
But the Shepherd Law Group is one of the few firms to voluntarily abandon the billable hour system entirely.
Shepherd,
a five-lawyer firm that specializes in employment law, charges its
clients a flat annual fee or flat price per task. Clients can call the
firm as often as they want to discuss legal issues, although some
services, such as training and litigation, cost extra. The new approach
helps clients determine legal costs in advance and often prevents legal
problems from escalating because clients are no longer reluctant to
seek advice out of fear of incurring a hefty bill, said Jay Shepherd,
the firm's founder.
"Hourly billing is wrong and it's
anti-client," Shepherd said. "There's a disincentive to be efficient
since you get paid more if you take longer to finish a matter - even
though the client wants it to be finished as fast and efficiently as
possible."
The American Bar Association concluded in a 2002
report that hourly billing is at the root of much that is wrong with
legal practice: brutal hours, lack of collegiality (since time spent
chatting with colleagues is time not spent billing), fraudulent
billing, lawyers who intentionally stretch the time it should take to
finish a matter, unpredictable costs for clients, little time for
friends and family, little time for community service, and a system
that rewards lawyers for quantity over quality.
Read the whole article here.
Posted by Jon Lutz