Appeals Quote by Robert Pozen
“From the law firm's perspective, billing by the hour has a certain appeal: it shifts risk from the firm to the client in case the work takes longer than expected. But from a client's perspective, it doesn't work so well. It gives lawyers an incentive to overstaff and to overresearch cases.”
About This Quote
Hourly billing shifts risk to clients and can cause lawyers to overstaff or overresearch.
In simple terms: Hourly billing can misalign incentives.
Key Takeaway
Consider alternative fee structures.
Themes
law
billing
incentives
Mood
analytical
critical
Type
business
legal
When to use this quote
- contract negotiations
- law firm management
- client budgeting
Key Concepts
risk allocation
client‑lawyer dynamics
pricing models
Questions to Reflect On
- What fee structure aligns client and lawyer interests?
- How to balance fairness and profitability?
A Different Perspective
Alternative models may be complex to implement.
