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Mega-Firms:
the bills were “frequently inflated far
beyond the hours that the timekeeping
attorneys had actually recorded on their
A
n on-line legal journal recently period that he was handling matters for Petersen’s then-hourly rate of $270.”
claimed that small to mid-sized law two of the firm’s pro bono clients.
firms that specialize in intellectual According to Farmer, this pattern contin-
property — it fashionably calls them “bou- In addition, DiSalvatore stated in his affi- ued, with the over-billing including more
tiques,” as if they were selling Prada hand- davit: “I created fabricated engagement lawyers who were working on the case.
bags or Jimmy Choo platform sandals — letters and fictitious billing records, falsely How did Farmer’s former partners
are having rugged times. They are, we are recording time for work which I never per- respond to his allegations? According to the
told, losing out to large firms that are scoop- formed.” For more details, please go to the Wall Street Journal, L. Kinder Cannon III,
ing up the business. The article cites the New York Law Journal’s website at the firm’s general counsel stated: “The
troubles of a couple of firms. It does not say http://www.law.com/jsp/nylj/PubArticleNY. amount billed by Holland & Knight in the
what any of the firms, large or small, charge jsp?hubtype=TopStories&id=115530332 litigation was reasonable and appropriate.”
for their services. 5775 The billing partner declined to comment.
I have written before about how large Later that same month, the Wall Street The legal pundits did not seem to be
law firms sometimes offer their clients — Journal reported that Matthew Farmer, a surprised by this kind of egregious behav-
instead of excellence — wasted time, junior partner in Holland & Knight’s ior. According to an article by Nathan
padded bills and gobs of lawyers. For Chicago office, had quit the 1200-lawyer Koppel in the Wall Street Journal on the
instance, I have pointed out how one mega- international firm after reviewing the topic (August 30, 2006), William Ross, a
firm put seven lawyers on one case I was billing records connected to a month-long law professor, calls the practice of law firm
involved in, and all they did was trip over trial he had won, after working almost full- billing-padding “the perfect crime,” and
one another. Their only coordinated act was time on the case for over two years. The NYU legal ethics professor Stephen Gillers
signing a motion to withdraw when their problem: According to Farmer, the partner says “there is a general consensus that
exasperated client replaced them. I also in charge of billing had grossly padded the billing fraud has increased.”
wrote about a pair of mega-firms that sent client’s bill. Farmer reported this to others But why are some large firm attorneys
approximately sixteen lawyers to a two- in the firm, but they did nothing. Farmer over-billing – and to such a large extent?
hour claim construction hearing, while we resigned. Perhaps it has something to do with the
sent two. Yet another put six lawyers on the According to a letter Farmer wrote to a extreme pressure that exists in large firms
telephone for a conference about claim con- Minneapolis judge, Janet N. Poston to generate billings, leading to profits for
struction; we had one lawyer on the phone. (http://www.sptimes.com/2006/08/30/imag the equity partners. There are too many
mouths to feed. Associates at well-known