Was the recession/depression (whatever economic term you care to use for such a downturn) enough of a catalyst to make alternative billing arrangements into commonplace? Well, it depends. Curiously, it appears to depend in part on geography.
This fairly recent article examines the use and acceptance of alternative billing arrangements in Northeast Ohio: http://www.cleveland.com/business/index.ssf/2010/03/the_billable_hour_slips_in_use.html
The gist of the article is that the billable hour tends to promote inefficiency and lead to an acrimonious relationship between attorneys and their clients. A simple proposition. If this is the case though, then why are lawyers and firms so slow to adapt? Any lawyer worth his salt will be quick to remind you that this is a service industry. Client relations are of the utmost importance. Nevertheless, you don't see a lot of fixed or flat fee agreements here in the New England area. Are clients not requesting alternative billing arrangements or are firms not offering it? Was the economy so bad in Ohio that this was the only option?
My inclination is that the firms of Northeast Ohio were ahead of the game. Fixed and other alternative billing arrangements will gain traction again as companies look for new ways to reduce costs and increase predictability on their books.
