Legal Fees Increased, While Demand for Hours Dropped in First Half of 2014
Summary: TyMetrix recently found that even though legal fees increased, the demand for hours dropped in the first six months of 2014.
TyMetrix recently released its latest version of the Legal View Legal Market Index, which found that even though legal fees increased, the demand for hours dropped in the first six months of 2014.
The demand for hours dropped by 4.4 percent when compared to 2012 as fees paid increased by 2.9 percent.
TyMetrix tracked purchases of legal services by 70 large corporate clients, of which 21 are in the Fortune 500 and 12 are in the Fortune 1000.
The companies are found in eight industries, including health care, financial services and technology.
TyMetrix tracked the spending of these 70 companies for 10 quarters. During this period, $6.4 billion was spent on legal fees.
The Index shows that the 70 companies bought four million hours in the first half of 2012. In 2013, the companies bought 3,982,393hours of legal work and just 3,902,359 hours this year.
TyMetrix also tracks billings by practice area and geography for the Index. The geographic and practice areas that brought in the largest amount of fees for the second quarter of 2014 were corporate associates in New York.
The group was paid $16.6 million collectively. The second-place group was New York finance and securities, which brought in $13.6 million in fees.
Corporate partners in Washington D.C. topped the partners list with $11.9 million in legal fees for the second quarter of 2014. Corporate partners in New York came in second with $9.6 million in legal fees.