I'm not buying it. There are a lot of reasons that reporting could be just as devastating as not reporting, except it's more likely to happen.
Imagine a James Lawyer at your prestigious $1000/hour partnership. He finds out Joe Partner is up to no good. What are his options?
Blow the whistle, get Joe Partner in trouble, get black-balled (if not outright fired [but, of course, not for whistle blowing]) and eventually (or immediately) have to find a new job. In trying to find other jobs, James finds nobody is interested in him in any capacity remotely near his previous level of employment, because, like any close professional community, everybody knows James is a whistle blower. He eventually has to settle for a position in a local law firm, make 1/3 what he was making before.
Or, don't blow the whistle. If Joe Partner eventually gets caught, James might get caught up in it, or he might be able to skate around it.
Do you really think no lawyers knew about Bernie Madhoff or World Comm or Enron? To say this ethical code of conduct justifies the high prices is laughable.
Lawyers regularly get in very severe trouble for breaches of legal ethics. The Enron, etc, examples aren't availing. Lawyers are required, legally, to rat out other lawyers for violations of legal ethics. They are not required to rat out their clients (and indeed are ethically prohibited from doing so). I'm sure lots of lawyers knew about Bernie Madoff and Enron, etc. But they were legally obligated not to disclose their clients' crimes.
Moreover, in your hypothetical, it's not just James Lawyer who can report the business practice. A judge reviewing a claim of attorneys fees could find something suspicious. An in-house guy reviewing bills could find something suspicious. Somebody at another law firm working jointly on a case could find something suspicious. Those people have no disincentive to report that conduct, and indeed their ass is on the line if they do not.
Do lawyers charge you for time while thinking about your case in the shower? Probably. Like any contractor, there is some margin for estimation while remaining ethical. But is there some grand conspiracy to systematically over-bill clients? There are just too many people who would have access to that knowledge, and who could only get in trouble for not ratting it out for that to be likely.
Imagine a James Lawyer at your prestigious $1000/hour partnership. He finds out Joe Partner is up to no good. What are his options?
Blow the whistle, get Joe Partner in trouble, get black-balled (if not outright fired [but, of course, not for whistle blowing]) and eventually (or immediately) have to find a new job. In trying to find other jobs, James finds nobody is interested in him in any capacity remotely near his previous level of employment, because, like any close professional community, everybody knows James is a whistle blower. He eventually has to settle for a position in a local law firm, make 1/3 what he was making before.
Or, don't blow the whistle. If Joe Partner eventually gets caught, James might get caught up in it, or he might be able to skate around it.
Do you really think no lawyers knew about Bernie Madhoff or World Comm or Enron? To say this ethical code of conduct justifies the high prices is laughable.