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Article Author:

Varying Rates for Contract Attorneys: Caveat Emptor!

You Might Get What You Pay For!

Jill Elden Rorem, Esq., Senior Manager, Legal Staffing
jrorem@BlackmanKallick.com, 312-980-2997

So, you're in charge of hiring contractors for a document review assignment and your superior has given you the daunting task of identifying the right agency. You call three different organizations to request a quote and notice a major difference in their hourly billing rate. Beware! The lowest rate does not necessarily translate into the best choice for the task.

With so many new agencies springing up around town, everyone is trying to offer the lowest rate possible to get a foot in the door. The inevitable result is that the attorneys will be paid a very low hourly rate, which could result in the following snags: 

1. A low pay rate could mean that you are hiring their least experienced contractors or the "last resort" candidates who will agree to work at a lower hourly rate.
2. A low pay rate could lead to turnover on the project if something more lucrative comes up for the contractors. Contractors are less loyal to agencies that underpay them.
3. The last thing you want on a document review project are apathetic and resentful attorneys who have once been paid higher rates to do the same work, especially when these are the people who could identify the "smoking gun."
4. Your law firm could be poorly represented as a "cheap" firm in the contractor community and beyond.

It is acceptable to ask the agency what their pay rate will be for the contractors. If the rate dips below $30/hour (which is still on the low side), chances are the above problems will occur. If an agency does not know this, you should be concerned. Consider this – if your firm's associates are being billed out at $200+/hour, how could it ever be acceptable to pay licensed attorneys so little?

Strange but True—Court Proceedings

A New Hampshire woman recently took her $100 speeding ticket all the way to the state Supreme Court. Christina Downs, 24, was ticketed last May for driving 44 in a 25 mph zone. Acting as her own lawyer in District Court, she opened 96 lines of inquiry, demanded engineering studies, questioned the ticketing officer’s experience and filed several motions for dismissal. When found guilty, she appealed to the New Hampshire Supreme Court, where the lower court’s ruling was upheld.

Read the full story, click here.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.