Fee vs. Hourly Rate

A recent post by Toby Brown in 3 Geeks and a Law Blog - When Raising Rates - discusses the difference between increasing hourly rates and the final fee for the work performed. Brown says:

"Have conversations with clients about pricing, versus rates. At the end of the year, or end of a case, what really matters to a client is the fee. How much did the case or deal cost them? Your rate could be $10 per hour, but if you took 100’s of hours to complete a task, the fee is going to be high. A challenge here is that clients tend to compare pricing on a rate level, instead of a fee level. Use the price conversation to help the client shift their thinking towards fees. In the long-run this will greatly benefit them and solidify your relationship with them."

And, he's right. What really counts is the final bill for services. The hourly rate is just a benchmark on the way to the final fee. Lawyers with a niche specialty can charge a higher rate because the depth and breadth of their expertise will justify the final fee. There is no profession (except, perhaps medicine) where the final result justifies the price of services so much as the legal profession. If an attorney can obtain the right result in a complex case with a minimum of effort the fee, if not totally out of line, is secondary. The result justifies the fee.

GOP Candidates Ready to Dismantle Federal Judiciary

The GOP primary contenders appear ready to tear the federal judiciary apart:

- Perry wants to have term limits on the USSC justices.
- Bachman and Paul want to forbid to the USSC from considering cases involving same sex marriage (although for different reasons, of course).
- Gingrich and Santorum want to abolish the 9th Circuit Court of Appeals.

An article by Adam Liptak and Michael Shear in this morning's NY Times - Republicans Turn Judicial Power Into A Campaign Issue - details the GOP's opposition to some or all of the federal judiciary.

Criticism of “activist judges” and of particular Supreme Court decisions has long been a staple of political campaigns. But the new attacks, coming from most of the Republican candidates, are raising broader questions about how the legal system might be reshaped if one of them is elected to the White House next year.

The complaints are in line with the candidates’ general opposition to federal authority. Like the elected branches of the federal government, they say, the federal judiciary has become too powerful and intrusive.

Liptak and Shear take pains to outline why many of these anti-judiciary positions are completely out of the question. Perry's suggestion about term limits would, of course, require amending the Constitution since Article III, Section 1 confers lifetime tenure on the federal judiciary. Perry's proposal that Congress would have the right to overturn a USSC decision by a 2/3 majority would mean the abrogation of Marbury v. Madison - something Gingrich thinks would be a good thing.

Still, there may be a way for Congress to limit the power of the federal judiciary. Article III, Section 2 of the Constitution provides that the USSC, “shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make.” These and other Constitutional waters remain untested.

ABA Begins Action to Curb Law School Reporting Abuses

In the wake of the scandals at Illinois and Villanova, reported here, an article in the online ABA Journal reports that the ABA Legal Education Section has decided to consider rules designed to penalize misrepresentation of admissions data by accredited law schools.

The Section recently announced a change in the questionnaire designed to elicit more accurate information regarding placement and employment data. For a sample of commentary about the misrepresentation of placement and employment data read the post here in Balkinization.

Westlaw on the Ropes?

The Three Geeks and a Law Blog has made a provocative post about the economic viability of Thomson Reuters. Westlaw is, of course, a subsidiary of Thomson Reuters. There has been speculation about this before. See an earlier post on this possibility. One potential reason for the possible demise of Thomson is competition from Bloomberg.

More on University of Illinois Law School Ethical Challenges

Readers of this blog may recall an earlier post regarding the misbehavior of the administration at the University of Illinois School of Law. Here's a follow-up post from the ABA Law Journal. And, here's more on story with some insightful commentary from Law Librarian Blog and from Above the Law.

When the USN&WR rankings begin to drive admissions policy you know there's something wrong with the system. The rankings are a useful tool for one school to measure itself against its peers. But it should not become the raison d'etre for any school.

Kindle Loosens Library Policy

Readers of this blog may recall two earlier posts regarding the ability of library patrons to borrow both Kindles and the eBooks that are in the library's collection. The first post addressed issues concerning the restrictive license that Amazon, maker and distributor of the Kindle, puts on eBooks downloaded from their site. The second post dealt with Amazon allowing libraries to check out the electronic reader i.e., the Kindle itself. In both cases it was argued that market forces, rather than legal action, would encourage Amazon to allow use of the Kindle in a traditional library setting.

Now, according to a NY Times article by Julie Bosman - Kindle Connects to Library E-Books - it appears that Amazon is on the way to allowing public library patrons to use their own Kindle or borrow a library Kindle, and to download ebooks that are in the library's collection. The conditions are not overly restrictive and are in line with typical library practice; for example, if a library buys 5 copies of a particular ebook it can only lend 5 copies. Just like lending print books.

There are two major problems that have yet to be resolved:

1. The new Amazon program is limited to 11,000 libraries. Great. But there are 122,000+ libraries in the United States. So, less than one percent of all US libraries will be affected.

2. Some publishers are still reluctant to get with the program. These publishers fear that library usage will cut into their traditional business model (a concern that has been around since the advent of the book iself). Perhaps it is time for publishers to change their business model. One possible business model publishers can adopt is the Netflix model. Unlimited views (think Netflix Instant) for a monthly fee.

PACER Fees Go Up

According to Ericka Wayne and a US Courts press release, the price per page to retrieve a document from PACER has just gone up from 8 cents a page to 10 cents a page effective November 1st. (The price increase is noted in paragraph 5 of the press release. Talk about burying the lead.) This may not seem like a lot until you begin downloading some of records and briefs from a federal district court web site. PACER has slowly morphed into a valid legal research tool. A 25% increase in fees may actually affect download statistics.

Pressure From The Rankings Leads To Cheating By Law School Administrations

Most know by now that some law school administrations have an unhealthy obsession with the US News & World Report Law School Rankings. Paying attention to the rankings is one thing. They do, after all, serve as a way for schools to compare themselves with others and to catch trends. Cheating in the pursuit of higher rankings, however, is beyond the pale. Past cheating scandals include the miserable attempts by at least one school to cook their stats via late admissions of candidates with lower GPAs and LSATs.

Just when you thought it was safe to go back to paying attention to the USN&WR rankings, Villanova was caught taking their GPA and LSAT admissions scores last February. Now, it may be Indiana's turn. A lengthy quote from the Law.com article -

The law school world was scandalized in February when Villanova University School of Law announced that its former dean and admissions officials had for years inflated the Law School Admission Test scores and grade-point averages of the school's incoming classes.

On Sept. 11, officials at the University of Illinois announced that they were investigating the veracity of the same statistics reported by its College of Law after getting a tip that the numbers released for its new class were wrong.

It remains to be seen whether Illinois did, in fact, report bogus numbers this year or in the past, or whether it was done on purpose. But the fact that a second law school had fallen under suspicion within a year raised questions. How widespread is the inflation of the academic credentials? What is being done to ensure law schools are honest?

What indeed? You can and should read the whole story here.

Searching for a Comment/Note Topic? Try US Law Week

If you are faced with the age old problem of finding a topic for a journal comment or note you might consider using the Circuit Split feature in BNA's US Law Week. This week's Circuit Splits section notes nine new circuit splits encompassing antitrust to the Establishment Clause. That could translate into nine different comments/notes.

Not interested in writing something for a journal? This could still be fertile ground for any upper class writing project.

Regardless, BNA US Law Week is a great way to stay in touch with what is happening in the law across the nation.

Rutgers students can sign up to get email alerts by going to the Rutgers BNA page here. Just scroll down, click on the US Law Week link. You can sign up for email alerts by using the link on the right side of the page. It's the last link in the right hand column - could they make it any more difficult to find? Make sure you sign up for email alerts while you are on campus. It just works better that way.

Delayed Birth Certificate in New Jersey - Bureaucratic Overkill?

Here's a heartwarming story about how Chief Judge Alex Kosinski of the 9th Circuit Court of Appeals helped an attorney who was looking for a judge to witness the signing of an affidavit in aid of filing a Certificate of Delayed Birth for a child born in New Jersey. The story is reported in Above the Law and on the ABA Journal site.

The form requires that if the affidavit in support of the Certificate is being signed in a state other than New Jersey it must be signed before a judge. The New Jersey statute that imposes this requirement, of course, is NJSA 26:8-32 (b)(2). According to the ABA Journal and Above the Law, this requirment was deemed either "perplexing" or "unusual."

Justifiable or bureaucratic overkill? You be the judge. So to speak.