TyMetrix has produced the “Litigation Rate Snapshot,” based on its LegalVIEW data warehouse of billing and matter information. Covering $15 billion in fees submitted by 147,000 individual U.S. billers, a table shows average rates paid associates and partners in five industry groups. For three of them (Finance, Investments and Banking; Manufacturing; and Retail), the increment from associate to partner rate is about $100 an hour.
For Insurance and Health Care, both rates are noticeably lower than those paid by the other industry groups and the associate-to-partner gap is half as much. Reversing that, for Technology and Telecommunications the average rates are considerably higher and the gap is nearly twice as much, $200.
Now, draw on some other metrics. In the Fifth Release of the GC Metrics benchmark survey, external spend as a percentage of revenue for Manufacturing (112 companies, about 60% US) is twice that of Retail (44 companies), yet the TyMetrix average litigation rates are nearly the same. Since litigation accounts for 50-70 percent of all external spend, these two streams of data suggest Manufacturing companies face twice as much litigation expense as Retail companies. That sounds right.