Weird Question: Insurance Defense Related. Started at a new firm about a year and a half ago. The partner insists that the paralegal he has bill for discovery. I find this incredibly odd as I’m not “killing it” with billable hours. This seems odd…… do any other insurance defense firms work like this?

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There are some carriers that will only pay a paralegal rate for certain tasks, even tasks that an attorney typically handles. That’s why the paralegal has to bill some things.

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Carriers have all sorts of weird quirks discounts. This could be one such concession, 75% of routine disco billed at paralegal rates (so they can overload other items at attorney rates). Or if your paralegals have billing requirements it could be the Partner taking care of his own

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My paralegal bills for preparing routine discovery (some clients require this, others don’t. Our paralegals do it for all clients except for the rare cases where the client doesn’t allow for it.)

I typically only bill for reviewing the discovery for sufficiency and for any bespoke discovery.

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At my id firm, paralegals bill for drafting initial discovery to the plaintiff as it does not need to be specifically tailored for individual cases. I get to bill for talking to the insured and preparing their responses to plaintiff's disco.

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One thing I've learned in ID, if you don't ask the partner why, you'll never learn. Its likely a billing thing, but its on you to ask that. The sooner you learn about billing issues and how to have those conversations with both other attorneys and clients, the sooner you'll figure out the game that is ID

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ID firms basically treat paralegals as underpaid associates 🙂 if the paralegal can do it, they will probably have them do it because of the rate difference.

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Carriers have different rules and guidelines about what they will pay for and who the work is done by. This may be a carrier rule that they don’t want to pay attorney rate for disc. but they will pay the paralegal rate. ID is notorious for this.

Not in ID, but of course my paralegal bills all of her time spent on a matter. It is in the retainer agreement.

So in my ID firm, internally I get the billing credit for my paralegal work. If an associate does it they get the billing credit. Could be a greed thing.

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