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General Counsel Consulting Career Feature

General Counsel Weary of Increased Firm Rates

By Erin Broadhurst

Recent belt-tightening has drawn more focus to law firms' hourly rates. Although clients do not want their law firms to raise rates for 2009, rates will probably go up, according to law firm consultants, who predict a 3 to 5 percent rate hike for rates in 2009. This increase, enacted to pay for increased costs, will be less than the 5 to 10 increase firms made in recent years when the economy was stronger.

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	Law.com reports that in-house lawyers are attempting to block any type of fee raise, emphasizing to firms that legal budgets have tightened and many companies have laid people off. Raises in rates could depend on the client and practice area, with firms given the discretion to make exceptions for individual corporate clients. Alternative billing arrangements and volume-based discounts are expected to become popular. When Yahoo! laid off 1500 employees, one firm offered to reduce Yahoo!'s rates by 20% of what they charged for the previous year.

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