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2010.03.08

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Jay S. Fleischman

The question is whether the firm's drive for constant profitability was the real reason behind the overbilling, or whether it was inherent dishonesty. Either way there's no excuse, but it makes one wonder whether GT's policies are somehow complicit in wrongdoing.

GAL

Jay:

I completely agree. It's hard to justify the conduct at issue here. However, law firms in general have to take responsibility for the cultures they create. Is the culture one of providing maximum value for the least cost? Does the culture make it clear to all employees that they should never bill for time which isn't providing true value to the client? Obviously, one of the fundamental flaws in hourly billing is it creates incentives which are so anti-client if matched with a culture which drives billable time above all else. While firms can't be responsible for "one bad apple", this is a great opportunity for firms to revisit their mission and culture in order to reinforce that it is the client - not billable hours - which comes first.

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