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High Times for Bankruptcy Counsel

ABA Journal

Are you paying your bankruptcy lawyer enough? Not according to this piece posted Jan 28 in the ABA Journal by Debra Cassens Weiss :

Kirkland & Ellis Seeks Fee of $18.50 a Minute for Bankruptcy Work

Kirkland & Ellis has requested a fee of $1,110 an hour in a corporate bankruptcy [which] breaks down to $18.50 a minute … for its representation of titanium dioxide-maker Tronox Inc. Two other law firms are seeking nearly as much, requesting hourly rates in excess of $1,000… They are Sidley Austin, in the restructuring of the Tribune Co., and Skadden, Arps representing Circuit City. Bankruptcy law professor Lynn LoPucki of the University of California at Los Angeles told the wire service that fees for lawyers and other professionals in bankruptcy cases are growing at four times the rate of inflation. “As the economy gets worse, the bankruptcy lawyers are charging more,” LoPucki told Bloomberg.

Ed. Note: Members of the firms in question could not be reached for comment. I was informed by staff that they were having a money fight.

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