Time billing has lawyers counting the cost

The financial incentives of racking up billable hours are behind what has been described as “perverse behaviours” by lawyers in the US who have been accused of overbilling, a legal consultant has claimed in an article reported in lawyersweekly.com.au.

The billing practices of some lawyers are under scrutiny after internal company emails between firm lawyers emerged in a court filing this month. One email indicated that a lawyer was creating unnecessary billable work, with his approach described as “churn that bill, baby! mode”.

John Chisholm told Lawyers Weekly that time-based billing creates incentives for lawyers to drive up a client’s bill.

“Incentives do matter,” he said. “If I am primarily measured and rewarded by billable time, then you can expect some perverse behaviours ... nothing startling there, [it’s] basic human nature.”

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