A recent article in the DRI’s For the Defense, “Using Regional Fee Scales as Evidence of Reasonable Rates (pdf),” by John E. Zulkey, provides a comprehensive look at the hourly rates of independent counsel. The article concludes:
The matrices described above are no silver bullet against runaway rates for independent counsel, and it would be folly for any coverage counsel to argue that a court or an arbitrator is bound by them. But as the chief judge of the U.S. Court for the Northern District of California explained in applying the Laffey Matrix, “[T]he court must find some objective source for setting counsel’s hourly rates; the court cannot simply look at a lone out-of-context dollar figure and pronounce it ‘reasonable.’” In re HPL Tech., Inc. Sec. Litig., 366 F. Supp. at 921–22.
At present, courts and arbitration panels are frequently without such an objective source. Panel counsel rates have been rejected as benchmarks in most states, and the opinions of even seasoned experts on the issue may encounter skepticism. Accordingly, even if these matrices are not strictly enforced, they may be of use in anchoring a court or a panel to a reasonable range of rates.
John E. Zulkey is an associate with McCullough, Campbell & Lane LLP in Chicago, with experience in a wide range of coverage issues, including a specialization in coverage for professional liability claims. In addition to being a member of DRI and author of the Illinois and Missouri chapters of the DRI Professional Liability Compendium, Mr. Zulkey was the chair of the Chicago Bar Association Civil Practice Committee and was formerly a captain in the U.S. Army. He has been cited by state and federal courts for his numerous publications on Related and Interrelated Acts Provisions.
This article was posted with permission.