Full Story
Lawyers' Fees - Someone Do The Maths
THE recent fuss over lawyers' fees should be evaluated not so much on what is a reasonable tariff for "perusal", but rather, does the amount of work done justify the payment calculation? What exactly is "perusal"? How is it defined in the tariff structure? I would assume that it means at the very least, reading through a folio to understand the content, and a contemplation thereon as to the significance of the content.
Or can it also mean a two-second glance and a decision, "Not
interesting"? And would both cases be justifiably charged at N$120?
I am sure that the tariff structure giving N$120 per folio must be
based on an estimate of an average x minutes required to consider
and absorb the folio content.
The alternate tariff of up to N$750 per hour indicates to me
that the profession considers perusal to proceed at a pace of about
6 to 7 folios per hour.
One of the lawyers at the centre of the controversy has
reportedly admitted that the total job was the equivalent of eleven
days of work.
Now the perusal of the 4 024 folios made up only part of the
account submitted.
Let's be generous and assume that the other chargeable work was
only two days' worth, leaving a full nine days for the folio
perusal.
This gives us 449 folios perused per day.
Let us again be generous and assume not an eight-hour day, but
nine to 10 hours per day.
We end up with almost 50 folios per hour (chargeable rate of
just under N$6 000 per hour!) Now the client should ask, "What was
the objective of the perusal?" Was it just to peruse - to look
through and nothing else? Or was it meant so that the documents
could be analysed; to give an understanding leading to a report and
recommendations? Why peruse a document unless you are to utilise
the information so gained? Does this not imply a careful reading
coupled to a thorough thought and analysis process? So the ultimate
question for the client is, "Could EVERY ONE of 4 024 folios
(charged at N$120 each) have been perused at an appropriate
intensity at a rate of 45 to 50 per hour, justifying a charge
equivalent to about N$90 - 100 per minute?" If the answer is "Yes",
so be it.
Case closed.
If not, time to negotiate.
Alan Hattle Via e-mail
The alternate tariff of up to N$750 per hour indicates to me that
the profession considers perusal to proceed at a pace of about 6 to
7 folios per hour.One of the lawyers at the centre of the
controversy has reportedly admitted that the total job was the
equivalent of eleven days of work.Now the perusal of the 4 024
folios made up only part of the account submitted.Let's be generous
and assume that the other chargeable work was only two days' worth,
leaving a full nine days for the folio perusal.This gives us 449
folios perused per day.Let us again be generous and assume not an
eight-hour day, but nine to 10 hours per day.We end up with almost
50 folios per hour (chargeable rate of just under N$6 000 per
hour!) Now the client should ask, "What was the objective of the
perusal?" Was it just to peruse - to look through and nothing else?
Or was it meant so that the documents could be analysed; to give an
understanding leading to a report and recommendations? Why peruse a
document unless you are to utilise the information so gained? Does
this not imply a careful reading coupled to a thorough thought and
analysis process? So the ultimate question for the client is,
"Could EVERY ONE of 4 024 folios (charged at N$120 each) have been
perused at an appropriate intensity at a rate of 45 to 50 per hour,
justifying a charge equivalent to about N$90 - 100 per minute?" If
the answer is "Yes", so be it.Case closed.If not, time to
negotiate.Alan Hattle Via e-mail
