The Parable of the Billable Hour

And while I'm at it today, there is a great billable hour parable on Jay Shepherd's terrific new blog, The Client Revolution.

Jay relates the story of the big firm associate who spent dozens of hours researching a possible argument for a summary judgment brief, only to find at the end of her research a recent case that blew away her argument. Then the next morning, while thinking about the case in the shower, the case-winning argument came to her in a flash of inspiration. She bills the client the 0.2 hours she is in the shower developing that winning argument.

Setting aside for the moment the issue of her billing a client for time spent in the shower (though all of us former hourly billers could probably confess to having done something similar), Jay asks the question -- which time was more valuable to the client? The dozens of hours spent researching an argument that a more recent opinion ultimately rejected? Or the 15 minutes in the shower? Or, as Jay puts it, "explain to me why the online-research work was worth 12 times more than the brainstorm in the shower."

Interesting question. Anyone care to play the role of the BigLaw firm and justify that?

Jim Hassett's Series on Alternative Fees

I also recommend to everyone today Jim Hassett's excellent four-part series on alternative fees in his Legal Business Development blog. Jim does a great job summarizing the issue to date with links to all the important articles and experts on the subject. I'm honored that he mentioned this blog in part three.

I would also draw your attention to his Guide to Alternative Fees, which includes some great "how to" advice on how to get started.

The Move to Alternative Fees Makes the New York Times

There is an article in today's New York Times on the issue of whether the down economy will force more firms to offer alternative fees.

The article does not break any new ground. I simply think it is noteworthy because the issue of law firms offering alternative fees made the New York Times.