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ECONOMICS

The Real Cost of a Reviewer's Hour

A page-turning hour and a strategy hour cost the same on the timesheet but are worth nowhere near the same to the firm. What the math looks like once you separate them.

A defense firm's rate sheet treats every billable hour the same: an associate's hour costs what it costs, whether they spent it arguing apportionment or hunting a date of injury across four thousand pages. But those two hours are not the same asset, and pricing them identically hides where the money actually leaks.

Two hours, one rate, very different value

A strategy hour — evaluating a defense theory, prepping cross, weighing settlement posture — is the hour a client is paying for and the hour that took a law degree to produce. A page-turning hour — sorting a scanned bundle, re-reading a file to confirm a fact a paralegal already found — required none of that training and produced no judgment a client can point to.

  • A strategy hour scales with the attorney's skill; a page-turning hour scales with the page count of the file.
  • Clients push back on the second kind on the invoice, correctly — it is not what they hired a lawyer for.
  • The second kind is also the kind most vulnerable to being wrong, because tired, repetitive reading is where facts get missed.
  • Every hour spent on the second kind is an hour not spent on the first, on a caseload that is not shrinking.

What the math looks like

Take a firm where a reviewer spends half of a 20,000-page file's review time on splitting, sorting, and re-finding facts rather than evaluating them. Remove that half and the same reviewer either closes the file in half the time, or spends the recovered hours on the analysis the client actually wanted. Either way, the rate stayed the same — the ratio of value to cost inside that rate is what moved.

The rate on the timesheet never changes. What changes is how much of that hour was worth it.

Why this is the argument, not the pitch

This is also why we do not price like a seat license. If the value is in recovering strategy hours, the fee should track the outcome those hours produce — not the number of people who happen to be logged in. A firm should be able to look at its own numbers, not ours, and see exactly which hour got more expensive to lose and which one got cheaper to keep.

See this on your own files

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