How law lost its soul – the epidemic of over-charging clients by City law firms

Over-charging by major City law firms could be as high as £5bn over the last five years. I estimate that the flawed system that lawyers continue to use to produce bills has led to charges that are, on average, 5%-10% higher than they should have been across the board. And I believe that when the fundamentally flawed system finally unravels, it will make the MPs expenses scandal look like children taken a few loose sweets from a corner shop. The background to these comments comes as a result of having compiled what is considered the definitive survey of hourly rates charged by the profession for the last 13 years.

Costs lawyer Jim Diamond (pictured) argues major law firms have over-charged their clients by £5bn in the last five years

Over-charging by major City law firms could be as high as £5bn over the last five years. I estimate that the flawed system that lawyers continue to use to produce bills has led to charges that are, on average, 5%-10% higher than they should have been across the board. And I believe that when the fundamentally flawed system finally unravels, it will make the MPs expenses scandal look like children taken a few loose sweets from a corner shop.

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