Commercial Lawyers Forced to Reduce Rates

Tue, 29 Sep 2009

Leading commercial lawyers are being forced to reduce their rates in the face of stiff competition. The economic downturn has seen legal costs for London’s top commercial lawyers driven down by as much as a third, as solicitors scramble for the available work. Lawyers at London’s five elite law firms charged an average of £450 per hour, down from £675 a year ago.

The figure is a five year low, according to independent legal costs consultant Jim Diamond. Mr Diamond collated the figures from law firms and their clients, and reveal the cost of instructing a partner at Allen and Overy, Clifford Chance, Freshfields Bruckhaus Deringer, Linklaters and Slaughter and May.

Banks were found to be particularly successful in achieving discounted rates, with the large volume of business they provide valuable to legal firms in the current climate. They have been able to secure discounts of around 30 per cent, while Mr Diamond claims he knows of an instance where one company undercut another by 60 per cent.

Other industries have had similar success in achieving lower legal costs, but on a lesser scale. Deepak Malhotra, from American drinks company Constellation, revealed they were able to secure a 15 per cent cut on costs.
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