In-House Counsel Can and Should Collect Attorney Fees
When weighing his post-Senate career options, then-U.S. Sen. Howard "Buck" McKeon rejected an offer from a prominent law firm, opting not to "live his life in six-minute increments." Indeed, it is with fair certainty to state a top reason lawyers in private practice transition to in-house is to escape the billable hour. And while the imminent death of the billable hour may have been highly exaggerated (again and again), it remains the predominate metric for private-practice attorneys handling commercial work to track their time and collect fees.
August 04, 2017 at 01:15 AM
10 minute read
When weighing his post-Senate career options, then-U.S. Sen. Howard “Buck” McKeon rejected an offer from a prominent law firm, opting not to “live his life in six-minute increments.” Indeed, it is with fair certainty to state a top reason lawyers in private practice transition to in-house is to escape the billable hour. And while the imminent death of the billable hour may have been highly exaggerated (again and again), it remains the predominate metric for private-practice attorneys handling commercial work to track their time and collect fees.
Numerous reports suggest the in-house lawyer is “rising,” with companies opting to retain more and more legal work within their law departments, and decreasing the amount of work they disseminate to outside counsel. Sources cite various reasons from cost to the intimate knowledge in-house lawyers possess regarding their employer vis-à-vis outside counsel. Whatever the genesis, it reasons that in-house lawyers morphing into the role traditionally held by outside lawyers should assume all such components of the role, which, when possible, can include recovering attorney fees for actual legal work performed, as noted in Video Cinema Films v. Cable News Network, (S.D.N.Y. March 30, 2003), (S.D.N.Y. Feb. 3, 2004), and other federal and state courts.
Recovering attorney fees is that extra win for the victorious litigant, whether provided by statute or governed by contract. It leaves the client's bank account intact (at least partially) and gives the prevailing attorney additional gloating rights. For the in-house lawyer, recovering attorney fees can also occasionally turn the legal department from a cost center to a quasi-profit center. In-house lawyers can and should collect attorney fees.
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