As lawyer rates surge, US firm charges $4,000 an hour for top partners

By David Thomas and Mike Scarcella

WASHINGTON, Jan 26 (Reuters) - The topmost hourly billing rates at U.S. law firm Susman Godfrey have reached $4,000 an hour for 2026, surpassing already sky-high fees charged by the priciest lawyers last year.

Susman partner Neal Manne said the new rates apply to him and fellow litigator Bill Carmody.

"If there’s someone out there who bills at a higher rate than Bill and me on hourly cases, please let us know so we may raise our rates," Manne said in an email.

He said most of their work is handled on a contingency or fixed-fee basis, not billed by the hour. The pair charged hourly rates of $3,000 last year, putting them near the top of known rates for top U.S. lawyers.

Manne, a former managing partner at Susman, said rates are set by management at the firm but declined to say how the amount was determined.

"The process by which Bill's and my billing rates are set each year is as mysterious as a papal conclave," Manne said. Carmody, the firm's leaders and a Susman Godfrey spokesperson did not immediately respond to requests for comment.

Susman Godfrey, founded in Houston, is known for plaintiff and defense-side litigation, and competes with large corporate firms. The firm touts above-average attorney compensation, especially for associates.

Billing rate increases are key revenue and profit drivers for law firms, and major firms typically raise rates each year. Hourly rates among large U.S. firms grew by an average of 7% in 2025, according to a 2026 report by the Thomson Reuters Institute and Georgetown Law’s Center on Ethics and the Legal Profession. The Thomson Reuters Institute and Reuters share the same parent company.

Law firms do not typically disclose rates, but they sometimes appear in public contracts and court records.

Federal bankruptcy court filings in the ModivCare Chapter 11 in Houston show top hourly rates for Latham & Watkins partners reached $3,050 this year, up 15% from $2,650 last year. Hourly rates for some associates reached $1,850 this year. A spokesperson for Latham did not immediately respond to a request for comment.

Top billing rates reported by Reuters last year included $3,250 an hour for leading appellate lawyer Neal Katyal at Milbank. Katyal did not immediately respond to a request for comment.

Quinn Emanuel partners William Burck, Michael Carlinsky and Alex Spiro each charged $3,000 an hour last year, according to court records. A spokesperson for the firm declined to comment.

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