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Hourly billing 'incentivises inefficiency', says Neuberger
@Anonymous | 16-May-2012 3:50 pm
I absolutely agree. The legal market is competitive enough if clients think they are getting screwed over by hourly billing then they have the choice to change to another firm. Similarly, if one firm switches over to value-based fees and clients flock to them then other firms will have to follow if they are losing work. It is a commercial choice not a judicial one.
Also, while hourly billing perhaps "leads to inefficient practices, at worst it rewards and incentivises inefficiency" fixed fee work can be just as perverse, incentivising cutting-corners - but then again I don't think the MR has been on an all-inclusive holiday before...
The only thing I would add to this is that in the PI and Criminal Law context there is more of a justification, as typically clients only need their lawyers once and having a clear "it will cost £x" could be quite beneficial for making comparisons.
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