Just wanted to get some opinions on this. As a general matter, are federal cases more profitable than state court cases for commercial litigation groups, or are clients willing to pay the same billing rates for both?
I've noticed some partners at my firm (usually the slower ones) don't seem to do much other than a few state court cases here and there. Wondering how profitable these actually are, and if they are good experiences for an associate (esp. mid level and sr level associates).
Litigation - Profitiability of State vs Fed Cases Forum
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Anonymous User
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PeanutsNJam
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Re: Litigation - Profitiability of State vs Fed Cases
Major institutional defendants largely (with some exception) prefer federal courts for a number of reasons, in no specific order:
(1) fed courts strictly follow FRCP/local rules/FRE, and it's easier as a defendant to get evidence excluded (or other motion practice wins) on procedural grounds;
(2) related to 2, fed courts are much more uniform, so you don't need as much specialized knowledge about court rules/state court procedure and thus can rely on your favorite biglaw partner/firm for litigation in a variety of courts; and
(3) there's a perception that federal judges (and their clerks) are smarter and thus more likely to reach the "right result";
(4) volume of citable precedent; and
(5) most fed courts are more defendant friendly than most state courts
At bottom, fed courts are a more knowable entity, and state courts feel more volatile (for those who do not litigate extensively within the same state court).
It's not that institutional clients will pay higher rates for someone litigating in federal court. It's that institutional clients who are willing to pay higher rates prefer to litigate in federal court.
(1) fed courts strictly follow FRCP/local rules/FRE, and it's easier as a defendant to get evidence excluded (or other motion practice wins) on procedural grounds;
(2) related to 2, fed courts are much more uniform, so you don't need as much specialized knowledge about court rules/state court procedure and thus can rely on your favorite biglaw partner/firm for litigation in a variety of courts; and
(3) there's a perception that federal judges (and their clerks) are smarter and thus more likely to reach the "right result";
(4) volume of citable precedent; and
(5) most fed courts are more defendant friendly than most state courts
At bottom, fed courts are a more knowable entity, and state courts feel more volatile (for those who do not litigate extensively within the same state court).
It's not that institutional clients will pay higher rates for someone litigating in federal court. It's that institutional clients who are willing to pay higher rates prefer to litigate in federal court.
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The Lsat Airbender
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Re: Litigation - Profitiability of State vs Fed Cases
Billing rates have more to do with how important and/or difficult the work is (edit: and as pointed out above, the MAIN factor is how deep-pocketed the litigant is). Federal litigation tends to be more important/difficult, because federal courts are the preferred venue for big corporations and they have have jurisdiction for certain important topics like patents. But plenty of blockbuster cases are decided in state courts, especially Delaware.
