I have been planning to further examine/ponder the reasons we’re stuck in our progress for global e-billing (i.e. Global E-Billing Disconnect: Part 3), but I’m going to take a break for now. Instead, I’d like to examine this interesting, passive aggressive war that’s going on under the radar between the corporate clients and their outside counsel firms.
I had a very interesting conversation with a very senior manager at one of the largest time and billing, software company.
I’m paraphrasing, but he basically said:
Corporate clients do everything they can to reject invoices from their law firms.
OH MY! I was shocked!
Until March ’08, I headed up technology strategy for Morgan Stanley’s law department globally and managing the e-billing effort was one of my responsibilities. During my tenure, I had never heard anyone say or imply anything of the sort. Many complained how large the invoices were, and we’ve seen some interesting disbursements come through (e.g., $24,000 for weekend air-conditioning; $700/night hotel charges; $2.50/copy where the line item for copies totaled $8,000, etc.), but they were all okay with being fairly charged and paying for services rendered under their request . Since I left Morgan Stanley, I’ve consulted to several corporate law departments, and the attitude has been similar across the board.
Yes, corporate law departments issue Outside Counsel Policies containing guidelines on attorney and disbursement rates, but the purpose is not to create an obstacle for the law firms to bill. So let’s dispel this notion.
On the flip side, though most law firms are reasonable and fair with their billing practices, why would a law firm charge for air-conditioning which should be part of overhead; or charge $2.50/copy when it should be a pass-through cost? When corporations are tightening T&E, is it smart for outside counsel to stay in a $700/night hotel? Perhaps it’s those few law firms that have caused corporations to question their integrity; implement Outside Counsel Policies; and police invoices.
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