CC fury at 'padding' story

BILLING: leaked memo on fees from US associates sparks off damage-limitation exercise

The world's biggest law firm, Clifford Chance, hit back this week at front-page allegations in the national press that it pads its fees.

The firm contacted many clients to reassure them that the stories - taken from a leaked memo from the firm's US associates expressing dissatisfaction - are untrue.

The associates, at the behest of US partners, produced the memo after the firm was placed bottom in a recent associate satisfaction survey by American Lawyer magazine.

Leaked last week, it said that associates found the stress on billable hours 'dehumanising' and that it 'encourages "padding" of hours, inefficient work, repetition of tasks, and other problems'.

The assignment of work was also the focus of resentment.

Comments quoted by the memo described the assignment system as 'an old boy's club', and said work was 'doled out on the basis of favouritism'.

One associate said: 'If the assigning system isn't corrupt, ask yourself: why aren't attractive female associates ever out of work?'

It painted a poor picture of partner/associate relations and communication: 'Being told "we own you" was also a winning moment,' one associate lamented.

A Clifford Chance spokesman said: 'There is no suggestion in the report that bills are actually padded or that work is misallocated.

Some associates said that the system encouraged padding but we have checks and balances in place to guard against that happening.'

In relation to the other remarks, he said: 'You can't extrapolate from these specific remarks to the general.

These remarks come from people with specific concerns, I'm not saying that these are not relevant or that they will be ignored.'

Although it was not a priority, the spokesman said questions would be asked about how the leak had happened, and he refused to rule out possible disciplinary proceedings against those responsible.

Clifford Chance merged with US firm Rogers & Wells from the beginning of last year.

A recent survey by careers Web site TheVault.com found the firm enjoyed rising prestige among top US associates, but had an 'obsession' with billable hours (see [2002] Gazette, 8 August, 8).

Jeremy Fleming