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Red Flags of Excessive or Unreasonable Attorney Fees

November 30, 2009 | Posted in : Billing Practices, Coverage of Fees, Defense Fees / Costs, Litigation Management


Before agreeing to pay or reimburse an insured for defense costs incurred by it, the carrier is advised to look for a number of indices that typically portend unreasonable defense costs. These indices are often referred to as the "red flags" of excessive billing and include the enumerated items set out below:

•  Insufficient Detail/Vague Time Entries
•  Undisclosed Timekeepers
•  Block Billing
•  Minimum or Formula Time Charges
•  Unusual Number of Long Days
•  Multiple Billers/Duplication of Effort
•  Inefficient Staffing/Improper Delegation

Source: The Insurance Handbook On Insured-Selected Independent Counsel, Meckler Bulger Tilson Marick & Pearson