Oh, Great: 21% Of Lawyers Are Stealing From Their Clients.

This should be a shock, but it isn’t. When the screenwriters for the film adaptation of “The Firm” changed the ending to focus on the fact that the mob’s law firm was over-billing clients, lots of lawyers and legal ethics specialists squirmed. Widespread over-billing in the legal profession has been a scandal waiting to break for decades.

The ABA journal reveals that a recent study by  CEB Inc. and Wolters Kluwer NV’s ELM Solutions, companies that work with corporate legal departments to manage their budgets, examined legal invoices from about 100 companies, and found that 21% of lawyers “upbilled” for their time in 2015. Upbilling is the practice of rounding up legal hours hours worked to the next hour or half hour. This could raise the annual legal bill for a partner billing 2,000 hours a year by about $29,000. Spread over all the clients and all the lawyers charging by the hour, the 21% figure translates into millions of dollars taken by fraud, and maybe billions, every year. You can read summaries of the reports  here and here. Continue reading

Occupational Hazard: Those Annoying, Hair-Trigger Ethics Alarms

cab metter

The danged ethics alarms start ringing loudly at the oddest times.

On Thursday afternoon, I was completing a cab ride from Houston’s Bush airport to the downtown law firm where I was to participate in an elaborate Inn of Court presentation, when I noticed some fine print on the window to my left. In its wisdom, the state of Texas had a)  designated me a senior before my time, and b) decreed that such newly-minted seniors were among those guaranteed  a 10% discount on their can fares. I had two disparate reactions to this stunning development in rapid succession.

First, in the tradition of Shirley MacLaine in “Terms of Endearment” when she raged at her daughter (Debra Winger) for becoming pregnant and thus making it imminent that she would be a grandmother, I was ticked off. Then I thought, “Well, what the hell. If Texas wants to save me money (this was going to be a hefty fare), why should I stop it?” Then the ethics alarms started ringing. Continue reading