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U.S. District Judge Sounds Off on Law Firms’ High Billing Rates

Banking - investing - money - advisorsThe invisible hand of the free market hasn’t been able to exert much control over law firm billing rates, U.S. District Judge Jed S. Rakoff said at a Cardozo School of Law panel discussion about the high cost of the legal system, reports Bloomberg Law.

Rakoff cited a 2016 report that showed average hourly rates for partners rose from $122 in 1985 to $532 in 2012, as average associates rates grew from $79 to $370.

Reporter  quotes Rakoff as asking: “Why isn’t the free market operating?” The  answer, he said, lies in the fact that the legal profession operates much like a guild, with “substantial barriers to entry,” not least of which is the cost of a legal education.

Read the Bloomberg article.

 

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