How does in-house counsel stack up in billing rates across the board? A new study by TyMetrix Legal Analytics and CEB clarifies matters, looking at $9.5 billion worth of invoices from 83 corporate clients ranging from 2008 to 2012. Drawing from this data, they made a series of tables as to how much different locations and types of lawyers are charging for the hour, and their conclusions were put in the “2013 Real Rate Report Snapshot.”
What the report exposes is that partners in 2012 averaged an hourly rate of $536.47, while associates made $370.25. There were big differences between geographical locations. New York charged more than $100 extra an hour compared to any other U.S. or Canadian office. This chart shows the 12 highest charging cities in this regard:
New York: $755.68
San Francisco: $651.33
Washington, D.C.: $649.24
San Jose, CA: $634.98
Toronto: $634.24
Los Angeles: $620.34
Boston: $598.69
Chicago: $585.47
Calgary, AB: $578.13
Houston: $549.25
Dallas: $510.32
Philadelphia: $516.56
The breakdown in costs could also be broken down by the size of the firm, with the larger firms, who work more on “very sensitive” corporate matters, with clients “willing to work the firms on those higher rates,” as David Moran, director of data management on this study, said, and as reported by Corporate Counsel.
1 to 50 lawyers: $342.95
51 to 100 lawyers: $380.35
101 to 250 lawyers: $422.35
251 to 500 lawyers: $531.62
501 to 1,000 lawyers: $638.23
More than 1,000 lawyers: $727.02
The highest charging rates went to finance and securities partner, who charged $673.04 per hour, followed next by mergers and acquisitions who charged $636.50, and then commercial and contracts at $608.73. Necessarily, those advising huge and lucrative businesses charged more for their services.
Finance and Securities was the highest, and such a sector in New York city would be the highest of all.