NCJ Number
150784
Journal
ABA Journal Volume: 80 Dated: (August 1994) Pages: 62-66
Date Published
1994
Length
5 pages
Annotation
Overbilling by lawyers is becoming a prominent issue in the media, one of the most recent examples being the resignation of Webster Hubbell as U.S. Associate Attorney General in the wake of President Clinton's Whitewater difficulties.
Abstract
Allegations of overbilling by lawyers are relatively common and are not limited to large corporate law firms. In Los Angeles, for example, overbilling on death penalty cases involving indigents in 1993 prompted the county to replace an hourly fee system with flat fees. Lawyers themselves believe the problem of overbilling is pervasive and that a significant amount of work done on large cases may not be necessary. According to one lawyer, however, most dishonesty is the result of self-deception rather than conscious fraud. Further, in some cases, overbilling may result from inadequate or sloppy recordkeeping. High hourly billing appears to be a common denominator in many overbilling cases, and improper billing practices over the course of a litigation may be more prevalent than a single transgression. Overbilling may be partially the result of high overhead expenses or the desire to maintain high profit margins. The American Bar Association has issued a formal opinion to prevent overbilling. In addition, clients should take active steps to protect themselves against overbilling. Few clients, however, can afford to retain a second legal counsel to investigate the first firm for suspected overbilling. Some clients have successfully used private investigators to debrief former law firm support staff.