Times are tough for Biglaw.  Layoffs.  Firms folding.  Offers rescinded.  Bonuses cut in half.  So what's the deal with this?

Judge Chin, in a polite and judicious order, asked Dewey [& LeBoeuf] to provide a bit more information on its fees:

It is difficult to evaluate the reasonableness of the hourly rates for most of the lawyers listed. For example, [five attorneys] — all simply described as “Associate” — have substantial hours billed at hourly rates of, respectively, $605, $605, $550, $605, and $605. Without knowing anything about their backgrounds, it is difficult for the Court to determine whether the requested hourly rates are reasonable. While I do not need descriptions of the backgrounds for all the lawyers, it would be helpful to have them for the lawyers who spent substantial amounts of time of these matters.

While I accept the representations that the requested hourly rates are D&L’s standard hourly rates for the individuals involved, I wonder whether the rates are high for legal services rendered in connection with a securities receivership proceeding. Is it reasonable to bill at hourly rates of $700 to $950 to $950 for partners and $425 to $550 to $605 for associates in the context of a securities receivership? Is it reasonable to bill at hourly rates of $285 for summer associates & $175 to $275 for paralegals?

Now I can well understand why Biglaw needs to bill out summer associates at $285 an hour, particularly.  The lunches and parties thrown in their honor aren't free, you know.  But what's with the $605 for associates?  How did that extra $5 get in there?

Yes, I know that they have student loans to pay off.  All the public defenders and assistant district attorneys, all the small firm lawyers, all the public service lawyers, must have gotten their education for free.  Lucky bastards. 

Lest anyone think that Dewey is taking advantage of the situation, consider this:

Dewey submitted an application to collect compensation and expenses for the first twenty or so days it served as receiver. Dewey’s tab? Approximately $2.2 million.

It's not like it billed $2.2 million per week or anything.  That would be greedy.

And what if the bill isn't paid?  There is always the Geeklawyer method of bill collection.  They could probably use a drink.  Bottoms up!