An earlier post referred to defense costs paid on behalf of an in-house counsel (See my post of Jan. 18, 2011: GlaxoSmithkline lawyer’s defense paid for.). What are the odds that legal defense costs on behalf of an employee lawyer make their way into calculations of fully loaded costs per lawyer hour?
The same situation might cause the Board of Directors to retain independent counsel to look into the situation. Fees for that retention, likewise, are not in the calculated cost of the law department and might not even hit the legal budget at all.
As a third instance, does the budget of a law department include the costs of commuting and accommodation for its chief legal officer who chooses to live in a distant city (See my post of Jan. 12, 2011: Arizona to Nevada weekly commute.)? Herewith another expense item that probably finds no place in calculations of fully loaded costs per attorney hour.