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Category: Hourly Rate Survey

ABA Journal Covers NALFA’s Annual Hourly Rate Survey

July 19, 2024

A recent ABA Journal story, “This City Has the Highest Billing Rates for Litigators, Survey Shows,” by Amanda Robert reports on NALFA’s 2023 Litigation Hourly Rate Survey & Report.  The story reads:

Litigators in the national’s capital outpaced all other litigators on billing rates in 2023, according to a recent survey from the National Association of Legal Fee Analysis.

A quarter of full-time litigators in Washington, D.C., who responded to the survey reported billing rates of $951 to more than $1,300, which is the highest tier tracked by the association. In comparison, only 13% of litigators fell into the highest tier in San Francisco, the city with the second highest billing rates last year.

“It’s top [litigation] billing city, and it’ll probably be so for the next several years,” Terry Jesse, executive director of the National Association of Legal Fee Analysis, told Law.com.  “I mean, no one comes close to Washington in terms of billing and litigation.”

More than 24,000 litigators in 24 cities participated in the National Association of Legal Fee Analysis’ annual survey of hourly billing rates, according to Law.com.

More than 2,000 litigators from D.C. responded to the survey. Nearly 200 of them reported billing rates of at least $1,201 an hour, Law.com says.

In addition to those in the highest tier, 51% of D.C. litigators reported billing rates between $701 and $950. Another 22% reported billing rates between $451 and $700.

Jesse told Law.com that the large presence of large law firms in D.C., and higher starting salaries for associates could be two factors influencing the city’s high billing rates.

NLJ Covers NALFA’s Annual Litigation Hourly Rate Survey

July 12, 2024

A recent NLJ story by Abigail Adcox, “DC Litigators Outpaced All Other Cities on Billing Rates in 2023” reports on NALFA’s 2023 Litigation Hourly Rate Survey & Report.  The story reads:

Washington, D.C., ranked as the city with the highest billing rates for litigation in 2023, according to a new survey from the National Association of Legal Fee Analysis.

A quarter of survey respondents in D.C., which included full-time equivalent litigators, both defense and plaintiffs counsel, fell within the highest tier, tier 4, with billing rates in the range of $951 to over $1,300, the highest percentage out of the 24 cities tracked.

Comparatively, in San Francisco, which had the second highest litigation billing rates last year, only 13% of respondents fell in tier 4, according to the survey.

“It’s top [litigation] billing city, and it’ll probably be so for the next several years. I mean, no one comes close to Washington in terms of billing and litigation,” said Terry Jesse, executive director of the National Association of Legal Fee Analysis, a nonprofit that undertakes fee analyses for courts and private clients.

A little over 2,000 attorneys in D.C. responded to the survey, including litigators practicing at large law firms, midsized law firms and solo practitioners. Overall, roughly 24,000 litigators participated in the survey across the U.S.

In D.C., of the 2,000 respondents, 101 reported billing rates between $1,201 to $1,300 and 97 reported billing rates over $1,300.

Overall, 2% of D.C. litigators fell within tier 1 billing rates (less than $450); 22% fell within tier 2 billing rates ($451-$700); and 51% fell within tier 3 rates ($701-$950).

Jesse indicated that the large presence of major law firms in D.C. was likely one reason for the region’s high billing rates. And the small percentage of billers in tier one may be attributed to higher associate starting salaries.

“Starting salaries have gone up. And thus there’s a correlation between compensation and rates. So what I think is going on is that first-year associates are starting their rates higher, more on the second tier,” said Jesse.

Overall in 2023, billing rate increases and demand helped D.C. firms end the year with a strong financial performance.

Average billing rates in the D.C. region rose 8.8% compared with the industry average of 8.3%, according to Wells Fargo’s Legal Specialty Group’s year-end survey results. Those results included eight firms headquartered in the D.C. region. That came as demand picked up in litigation and regulatory practices in the region.

Billing rate hikes aren’t expected to slow down in the near-future either. A recent survey showed that 86% of large firms in the U.S. and U.K. expect to increase billing rates over the next 12 months, with nearly a fifth of respondents expecting them to increase between 41% and 60%, according to reporting from The American Lawyer.

Study: Washington, DC Outpaces Peer Cities on Hourly Rate Growth

February 15, 2024

A recent Law.com story by Abigail Adcox “ ‘D.C. Was Our Best-Performing Region’: Billing Rate Increases and Demand Growth Drive Strong Year in the Beltway”, reports that law firms based in Washington, D.C., finished out 2023 with a strong financial performance, propelled by billing rate increases, expense control and robust demand within regulatory and litigation practices, according to results from a bank survey.

Among D.C.-based firms, gross revenue was up 7.6% in 2023 over the previous year, higher than the industry average of 6%, as the average billing rates in the region rose 8.8% compared with the industry average of 8.3%, according to Wells Fargo’s Legal Specialty Group’s year-end survey results.  Those results included eight firms headquartered in the D.C. region.

“D.C. was our best-performing region,” said Owen Burman, senior consultant and managing director with the Wells Fargo Legal Specialty Group.  “When talking to firms to really find out what drove it, the regulatory side was on fire for so many firms. And litigation overall has been supporting many firms this past year.”  In average revenue growth, D.C. firms exceeded peers in New York City (7%), California (6.6%), Texas (6.3%), Florida (5.9%), Chicago (5.2%), Philadelphia (4.7%) and Atlanta (4.4%), according to Wells Fargo data.

“The practice mix was very much in favor of D.C.-headquartered firms” in 2023, Burman said, citing robust demand within restructuring, antitrust and litigation practices, as other firms saw the impact of slowdowns in the transactional market.  It follows a lackluster 2022 for D.C. firms, which “underperformed,” as anticipated enforcement activities under the Biden administration didn’t come to fruition as expected, according to Burman.

However, in 2023, as demand picked up within regulatory and litigation practices, D.C. firms were able to control expenses and were less aggressive in hiring, contributing to their revenue growth.  Profits per equity partner were up 10.7%, compared with the industry average of 4.9%.  The number of full-time equivalent lawyers at D.C. firms also grew by 2%, slightly below the industry average of 2.8%. However, productivity at D.C. firms was down 1%, still better than the industry average (down 2.1%).

Demand among all lawyers was also slightly better at D.C. firms (0.9%) than the industry average (0.7%), but fell short of peers in New York City, which saw a 2% increase in demand.

Controlling Expenses

Meanwhile, total expenses grew 4.1%, the best out of all eight regions tracked, and above the industry average of 6%.  “They were able to control the expense growth much better than peers,” Burman said.  “Last year they were able to control the lawyer compensation pressures a bit more than other markets.”

Billing rate increases were in large part able to compensate for increases in lawyer compensation at D.C. firms last year.  “All together the rate increases are covering it.  The problem is that they were hoping it would cover other investments and now they have to redirect that money into supporting the lawyer compensation,” said Burman, adding that artificial intelligence and innovation investments are other top priorities for firm expenses.

Because of these expenses and other priorities, in 2024, D.C.-based firms may see more expense pressure, and they may be more in line with the industry averages in expense growth, he said.  Still, entering the year, D.C. firms are “optimistic,” Burman added, expecting strong demand within litigation and regulatory practices to continue.  “Their growth estimates are quite optimistic,” Burman said.  “Litigation, restructuring practices are still quite strong.  So those haven’t tailed off as we’re anticipating this rebound in transactions.”

ALM Covers NALFA’s 2023 Litigation Hourly Rate Survey & Report

February 2, 2024

A recent Law.com story by Michael Mora, “Where Miami Ranks in States Litigators Charge Highest Attorney Fee Rates,” reports on NALFA's 2023 Litigation Hourly Rate Survey & Report.  The story reads:

The National Association of Legal Fee Analysis released new intelligence providing micro and macro data of hourly rate ranges for both defense and plaintiff lawyers, which one attorney-fees expert said is the confluence of the coronavirus pandemic changing the geography in which people are living and working and the emergence of Miami on the national scene.

And that expert, Edward Mullins, a partner at Reed Smith in Miami, is not involved in the study.  The Am Law 100 firm attorney said he was surprised by the portion of all rates in Miami being at 18% in the most expensive tier and suspected that it is due to the influx of major law firms entering into the market in the last few years.

“Many of the new lawyers coming in are working not on local work, but more likely are doing work that is based in other areas like New York or other areas from where they are emigrating,” Mullins said.  “These new lawyers are integrating their N.Y. rates into the market and increasing the rates, but I don’t think that the rates charged for local work are increasing at the same pace.”

The NALFA empirical survey and report provides that micro and macro data, which, in addition to ranging from defense and plaintiff attorneys, does so at various experience levels, from the largest law firms to solo shops, in regular and complex litigation, and in the nation’s largest markets.  Over 24,800 qualified litigators participated in the survey.

Here, there are four categories: tier one, which ranges from $250 to $450; tier two, which runs from $451 to $700; tier three, which ranges from $701 to $950; and, tier four, which runs from $951 to over $1,300.

Nationally, Washington, DC, has the largest tier four percentage at 25%; then falling to a tie in second at 18% with Miami and New York.  For tier three, Washington has the highest percentage by far, at 51%; with San Francisco in second at 32%, and New York tied for third at 30% with multiple cities, including Boston and Los Angeles.

As for tier two, New Orleans and Las Vegas garnered the highest percentage at 44%; followed by Phoenix, Arizona, and San Francisco, at 43%; and, several cities fell closely behind, including Dallas and Denver with 42%.  And, for tier one, New Orleans has the most, standing at 39%, while Phoenix sits at 35% followed by Las Vegas at 33%.

NALFA Releases 2023 Litigation Hourly Rate Survey & Report

December 27, 2023

Every year, NALFA conducts a survey of prevailing market rates in civil litigation in the U.S.  Today, NALFA has released the results from its 2023 hourly rate survey.  The survey results, published in the 2023 Litigation Hourly Rate Survey & Report, shows billing rate data on the factors that correlate to hourly rates in litigation:

City / Geography
Years of Litigation Experience / Seniority
Position / Title
Complexity of Case / Practice Area
Law Firm / Law Office Size

This empirical survey and report provides micro and macro data of current hourly rate ranges for both defense and plaintiffs' litigators, at various experience levels, from large law firms to solo shops, in regular and complex litigation, and in the nation's largest markets.  This data-intensive survey contains hundreds of data sets and thousands of data points covering all relevant billing rate categories and variables.  This is the nation's largest and most comprehensive survey or study of hourly billing rates in litigation.

This is the fourth year in a row NALFA has conducted this hourly rate survey.  The 2023 Litigation Hourly Rate Survey & Report contains additional categories and more accurate variables.  These updated features allow NALFA to capture new and more precise billing rate data.

Through its propriety email database and digital infrastructure, NALFA surveyed over 495,000 attorneys from thousands of law firms and law offices from across the U.S.  Over 24,800 qualified litigators participated in this hourly rate survey over a 10-month period.  This data-rich survey was designed to aid litigators in proving prevailing market rates in court and comparing their billing rates to their litigation peers.