City might dump hourly rates

More than 80% of the top solicitors' firms in the City are forecasting the demise of hourly billing rates, according to the results of a Gazette survey.

The survey, which canvassed the views of the leading firms, found that commercial law solicitors are preparing to dump their hourly bills in favour of fixed and success fees.

One-third of the respondents are already using a mixture of billing methods, ranging from hourly rates, fixed fees, annual retainers and conditional fees.

'We don't care [what we use] as long as we get paid,' said one managing partner of a magic circle firm.

A finance director at another leading practice suggested billing options were market-driven, with fixed fees being the preference of commercial property clients, while litigation clients still preferred hourly rates.

The survey also revealed that top law firms have joined the growing band of businesses that charge in euros.

Slaughter and May, Eversheds and Berwin Leighton, Nabarro Nathanson and Wragge & Co are among the increasing number of law firms that accept payment in the European currency.

Birmingham-based Wragges introduced euro-payment options three months ago.

Its managing partner, Quentin Poole, said his firm added euros to its billing portfolio because it was 'facing reality'.

He gave two reasons for the decision: 'Whether we like it or not the euro is the prevailing currency all over Europe.

And, somewhat cynically, if you take a view on the euro as a currency, you don't have to be a rocket scientist to see it's undervalued.'

But he emphasised: 'We are genuinely not currency speculators.'

Mr Poole, whose firm does not have a euro bank account, added: 'We do not want to be paid in euros, because all we are really doing is taking the currency risk ourselves.'

Berrymans Lace Mawer is one of the few firms which responded to the survey that does not accept payment in euros.

None of the respondents said that they accepted credit card payment, although Wragges and Nabarros clients have a direct debit option.

Anne Mizzi