Does Use of Paralegals Save or Cost More in Legal Expenses?

Reese Morrison in an article posted in Inside Counsel on March 24, 2011, states that “available data suggests that having more paralegals correlates with more legal spending, not less as some might expect.”   http://insidecounsel.com/Exclusives/2011/3/Pages/Morrison-on-Metrics-Paralegals-and-Total-Legal-Spendingg.aspx?utm_source=ic&utm_medium=email&utm_campaign=iccommentarya

Morrison, a management adviser to general counsel and the founder of General Counsel Metrics LLC, was writing about in-house use of paralegals.  Interestingly, though, Morrison’s research parallels what I have found in reviewing legal bills for insurers.  By far and away, the number one billing problem I see with outside counsel bills is the use and mis-use of paralegals.  In checking some of my past reviews, I note that overbilling and misbilling by paralegals can easily add 5% to 6% to legal bills.

[Complete copies of this blog post are available to clients of LegalBillAudit.com. To request a copy, please contact clientservices@legalbillaudit.com.]

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