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10 August 2012 / Michael Cook
Issue: 7526 / Categories: Features , Costs
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Arcane pricing & practices

Michael Cook confronts the ghost of hourly billing

Adam Sampson, the Legal Ombudsman, wrote in The Guardian that for too long lawyers have got away with “arcane pricing and billing practices” (“Lawyers beware: your clients are rebelling”, 6 March 2012). He continued: “Protected by their social status, political power and deliberately obfuscatory language, lawyers have hitherto been able to ignore the notion of customer service…Nowhere is the battle between the traditional view of client and customer more marked than in the notion of pricing…Law firms who seem incapable of working on a fixed costs model for individual clients appear far more willing to do so for insurers and the Legal Services Commission.”

According to the Master of the Rolls, Lord Neuberger, addressing the Association of Costs Lawyers on 11 May: “Hourly billing at best leads to inefficient practices, at worst it rewards and incentivises inefficiency. Moreover, it undermines effective competition in the provision of legal services, as it ‘penalises...well run legal business whose systems

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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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