Legal Definitions - billable time

Billable time refers to the hours and minutes that legal professionals, such as attorneys, paralegals, and legal assistants, spend working on a client's specific case or matter, for which the client will be charged. This time is meticulously tracked and forms the basis for the legal fees a client pays.

Here are some examples to illustrate how billable time applies in different legal contexts:

• Example 1: Business Contract Negotiation

  A small business owner hires a law firm to draft and negotiate a complex partnership agreement. The attorney spends two hours researching relevant business statutes, three hours drafting the initial agreement, and one hour participating in a conference call with the other party's legal counsel to negotiate terms. A paralegal spends 30 minutes organizing and reviewing supporting documents. All these activities—the research, drafting, negotiation, and document management—are considered billable time because they are direct tasks performed on behalf of the client's specific legal matter, and the client will be charged for each professional's time spent on them.

• Example 2: Estate Planning

  An individual seeks legal assistance to create a comprehensive estate plan, including a will, a trust, and powers of attorney. The attorney meets with the client for an hour to understand their assets and wishes. Subsequently, the attorney dedicates two hours to drafting the various legal documents, and a legal assistant spends 45 minutes preparing the documents for signing and coordinating with the client. Each segment of this work—the initial consultation, the drafting of legal instruments, and the administrative preparation directly related to the client's plan—constitutes billable time, as these are services rendered specifically for the client's estate planning needs.

• Example 3: Personal Injury Litigation

  A person involved in a car accident hires an attorney to represent them in a personal injury lawsuit. The attorney spends four hours reviewing accident reports and medical records, two hours preparing a demand letter to the insurance company, and one hour communicating with the client about case progress. A law clerk spends 90 minutes conducting legal research on similar cases to support the claim. All these actions—the review of evidence, drafting of correspondence, client communication, and legal research—are categorized as billable time because they are essential steps taken by the legal team to advance the client's lawsuit and seek compensation.