Legal Fees on the Rise

Legal Fees on the Rise

The recession doesn't appear to have stopped legal fees increasing, LawFuel reports

It may be surprising in a recession, but legal fees may be on the rise according to recently released figures.

The last quarterly Producers Price Index, released last month, show that for the quarter up until March 2009 "legal services" (which includes corporate and personal fees) were up by 6.6 per cent. By contrast, accounting fees, which are normally ahead of legal costs, were up by 4.8 per cent.

For the year legal fees took a significant leap, growing by 8.7 per cent, which is surprising to many who considered that legal costs may have slumped with the recession.

The 2008 figure, by contrast, was less than half that amount at only 3.9 per cent.

While some of the major law firms have been busy with a variety of insolvency, litigation, regulatory and compliance work, many smaller practices have found the going relatively tough with the property market slowdown. However it is also apparent that many smaller practitioners, including barristers, are busy with a variety of work that comes with a tougher environment.

"I did well in the last recession," one litigator from a small firm, told LawFuel. "And it's looking to be exactly the same with this one. The phone doesn't stop ringing."

 
ends

© Scoop Media