Rock-Star Law Firms Are Billing Up to $2,500 per Hour. Clients Are Indignant.

The Wall Street Journal describes growing backlash from corporate legal departments against sharply rising outside-counsel costs. Lawyer hourly rates climbed roughly 9% in early 2024, following an 8.3% jump in 2023—far above historical increases near 4%, with headline rates reaching $2,500 an hour and expected to keep rising.

Clients are responding by seeking competitive bids, moving work in-house, steering matters to smaller boutiques, and adopting alternative fee arrangements such as caps, fixed fees, and success bonuses to control budgets and predict outcomes. Rate growth is fastest among the most elite firms, and litigation rates commonly span from hundreds of dollars to more than $1,000 per hour, depending on market and matter.