'Surprised, Angry, Dismayed': Legal Departments Vow to Fight Law Firms' Rate-Hike Plans
"This feels more like law firms throwing spaghetti up against a wall and seeing what sticks," said Jason Winmill, managing partner of Argopoint.
November 28, 2022 at 05:29 AM
7 minute read
Law Firm Client RelationshipsThe original version of this story was published on Corporate Counsel
The in-house legal community is expressing outrage that law firms will be pressing for aggressive rate hikes in 2023, even though they know that legal departments are under extraordinary pressure as the economic outlook sours.
"Law firms are claiming to raise rates due to inflation, but anyone who's ever taken an economics class knows that the real reason they're raising rates is because they think no one will notice under the guise of inflation," said Stephanie Corey, a former legal-ops leader at HP and VMware who now leads the consulting firm UpLevel Ops.
"That being said, legal departments who are budget-conscious—which are the majority, I believe—can't shoulder this increase. Many of our clients are being asked to cut anywhere from 5-20% of their budgets, so the math just doesn't work out."
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