Learn · block billing

Block billing reduction: why a typical amount is the wrong answer

Block billing reductions in the court fee awards discussed here run from 5% to 40%, and appellate courts have vacated the ones that were picked rather than reasoned. A reduction the firm can answer names the entry, the rule, the calculation and the way to resubmit; this guide shows how, and how Botminds' Legal Bill Review writes one.

Updated · 12 min read

The typical block billing reduction people quote is a flat percentage of the block-billed time, and in the federal decisions discussed below it runs from 5% to 40%. That spread is the problem. In January 2025 the Eleventh Circuit vacated a 40% cut to block-billed entries because the trial court had picked an "arbitrary percentage", and the Ninth Circuit has held that a court may trim up to 10% without explaining itself, but must give specific reasons for anything more. Block billing, one time charge for several tasks, makes the time per task unknowable; the reduction that survives says which entries, under which rule, by how much, and how the firm can fix it. For an insurer reviewing panel counsel's invoices, the same discipline decides how fast an appeal is answered. Botminds' Legal Bill Review writes each block-billing reduction that way, entry by entry.

A typical-amount block billing reduction against a line-specific one

Flat percentage cutLine-specific reduction
Base

Flat percentage cut: A share of all hours, or of all block-billed hours

Line-specific reduction: The named entries that lump tasks under one time charge

Reason given

Flat percentage cut: "Block billing" in general

Line-specific reduction: The tasks quoted from each entry, and the guideline section they break

Calculation

Flat percentage cut: One percentage, chosen

Line-specific reduction: Shown per entry: 8.7 h × $210 = $1,827.00, paid at the agreed share

What the firm can do

Flat percentage cut: Argue about the percentage

Line-specific reduction: Resubmit the entry with time per task, to be reviewed again

On appeal

Flat percentage cut: Reversed as arbitrary when nothing ties it to the over-billing

Line-specific reduction: Checked against the entry and the rule, line by line

Left: the pattern appellate courts have vacated in fee awards (Eleventh Circuit 2025; Ninth Circuit 2007). Right: as Legal Bill Review writes a block-billing reduction, using one entry from its fictional sample invoice.Source: U.S. Court of Appeals for the Eleventh Circuit, Smith v. Commissioner of Social Security, No. 24-11233 (22 Jan 2025, unpublished); U.S. Court of Appeals for the Ninth Circuit, Welch v. Metropolitan Life Ins. Co., 480 F.3d 942 (2007)

What is block billing?

Block billing is recording several tasks under one time charge, so that nobody can tell how long each took. The Ninth Circuit adopted the Tenth Circuit's definition: "the time-keeping method by which each lawyer and legal assistant enters the total daily time spent working on a case, rather than itemizing the time expended on specific tasks." A federal court in California put it more briefly in an order on fee records: one time charge covering several activities is not acceptable.

The Eleventh Circuit's 2025 case gives an ordinary example: "Continue reviewing administrative record, conduct research, continue drafting arguments." The court agreed this was block billing, rejecting the argument that the three tasks happen at once: whatever the connection between reviewing, researching and drafting, counsel must keep records that let a reviewer identify distinct claims.

How much do courts reduce block billing?

Anywhere from a few percent to 40% in the reported cases, which is why a single "typical" figure misleads. The amounts in the chart all come from federal fee disputes, where a court decides what the losing side pays the winner's lawyers; the outcomes beside them matter more than the numbers.

Block billing reductions in five federal fee decisions, and what happened to them

Molina (S.D. Fla. 2024): applied with a thorough explanation
5%
Moreno (9th Cir. 2008): most a court may cut without specific explanation
10%
Farrat (S.D. Fla. 2024): applied with no explanation
20%
Welch (9th Cir. 2007): 20% of all hours, in effect 40% of block-billed hours, vacated
40%
Smith (11th Cir. 2025): 40% of block-billed entries, vacated as arbitrary
40%
The two S.D. Fla. orders are as the Eleventh Circuit described them in Smith, footnote 2; Welch's 40% is the Ninth Circuit's own arithmetic on a 20% cut to all hours when barely more than half were block billed. Fee-shifting decisions, not insurer bill reviews.Source: U.S. Court of Appeals for the Eleventh Circuit, Smith v. Commissioner of Social Security, No. 24-11233 (22 Jan 2025, unpublished); U.S. Court of Appeals for the Ninth Circuit, Moreno v. City of Sacramento, 534 F.3d 1106 (2008); U.S. Court of Appeals for the Ninth Circuit, Welch v. Metropolitan Life Ins. Co., 480 F.3d 942 (2007)

The Eleventh Circuit drew the lesson itself. Counsel had pointed to recent orders in the same district cutting block-billed fees by 20% and 40%, with no explanation for either; the court wrote that "This inconsistency also highlights why we believe the reduction to be arbitrary." The same footnote praised a judge who declined a recommended 20% cut as excessive, because the block billing in that case was "far less egregious than other cases", and applied 5% instead.

The range people cite as typical has a source. In Welch, the trial court took its 20% from a California State Bar fee-arbitration advisory which concluded that block billing "may increase time by 10% to 30%", and chose the middle. That is an estimate of how much block billing may inflate time in general, not a measure of what happened on any invoice.

Why a typical percentage is the wrong answer

Because it is not tied to the over-billing it is meant to correct. The courts' objections come in three forms, and each applies to a bill reviewer as much as to a judge.

[A] district court ‘must do more than eyeball the request and if it seems excessive cut it down by an arbitrary percentage.’

U.S. Court of Appeals for the Eleventh Circuit, 2025, quoting its own 2022 decision

First, the base. Welch's trial court applied 20% to every hour requested, not only the block-billed ones; because barely more than half were block billed, the Ninth Circuit found the cut "effectively served as a 40 percent penalty on those hours actually block billed, well above the range justified by the Fee Report." A reviewer who applies a block-billing percentage to a whole invoice repeats the error.

Second, the connection. In the same case the Ninth Circuit upheld a separate 20% cut for billing in quarter-hour increments, because "the district court expressly correlated its reduction for quarter hour billing to Kantor & Kantor’s actual over-billing": it had found phone calls and emails billed at fifteen minutes that likely took a fraction of that. The same percentage survived where it was tied to evidence and fell where it was not.

Third, the explanation. The Ninth Circuit's Moreno decision allows a court to "impose a small reduction, no greater than 10 percent—a “haircut”—based on its exercise of discretion and without a more specific explanation." Beyond that, the reasons must be specific enough to review. The Eleventh Circuit asks a court to "articulate the decisions it made, give principled reasons for those decisions, and show its calculation."

Block billing vs task billing: one entry, two ways

Task billing gives each task its own line and its own time; block billing gives several tasks one. The difference is easiest to see on the same day's work. Both entries below come from Legal Bill Review's fictional sample data: the first is a block-billed deposition-preparation entry; the second is a mediation entry a panel firm resubmitted with time per task after it was reduced.

Block billing vs task billing, on two sample entries

Block-billedTask-billed
The entryPrepare for deposition of driver Curtis Dunmore; review ELD logs and dash-camera stills; draft outline; telephone conference with client safety director; email to G. LindqvistPrepare for and attend mediation; travel to and from Wichita mediation center
Time recorded8.7 hours, one charge5.4 hours, split on resubmission: preparation 0.9, attendance 3.7, travel 0.8
What a reviewer can tellNot how long any of the five tasks tookThe time on each task, so each can be tested against its rule
Result in the samplePaid at 50% under the guideline’s block-billing section: −$913.50 of $1,827.00Appeal reader recommends accepting: preparation and attendance in full, travel at 50% under the travel section
Fictional sample data from Legal Bill Review (Hargrove Lindqvist LLP on Torres v. Brayford; Calder & Voss LLP on Hale v. Parkline). The 50% share and the travel rule are the sample carrier's guideline terms.

The second entry shows why task billing is worth asking for rather than penalising its absence. Once the firm split the 5.4 hours, the travel time could be paid under its own rule and the rest in full. The block-billed version could only be paid at a guessed share.

How should a block billing reduction be explained?

So that the firm can check it and fix it without asking a question: the entry, the rule, why the time per task cannot be known, the calculation and the way to resubmit. Each element below answers a ground on which a court has set a percentage aside.

Seven parts of a block billing reduction a firm can answer

  1. The entry, identified

    Invoice, line number, date, timekeeper, and the description quoted in full.

  2. The tasks lumped together

    Listed from the description, so the firm sees what the reviewer counted.

  3. The rule, quoted

    The guideline section and its words, not "block billing" as a label.

  4. Why the time is unknowable

    One charge for several tasks; the reduction rests on that, not on the work.

  5. The base and the calculation

    This entry’s hours × rate, the share applied under the agreed rule, the amount.

  6. The route to payment

    Resubmit with time per task, and the entry will be reviewed again.

  7. The deadline to answer

    The window the guideline or agreement gives; 30 days in the sample.

Our checklist, built from the reasons the Eleventh and Ninth Circuits gave for vacating percentage cuts.Source: U.S. Court of Appeals for the Eleventh Circuit, Smith v. Commissioner of Social Security, No. 24-11233 (22 Jan 2025, unpublished); U.S. Court of Appeals for the Ninth Circuit, Welch v. Metropolitan Life Ins. Co., 480 F.3d 942 (2007); U.S. Court of Appeals for the Ninth Circuit, Moreno v. City of Sacramento, 534 F.3d 1106 (2008)

Is a 50% block billing rule in an insurer's guideline different?

Yes, in law, because it is a term the panel firm agreed rather than a judge's discretion; but it still has to be applied entry by entry. The sample carrier's guideline in Legal Bill Review says entries combining two or more tasks under one time charge "will be paid at 50% of the amount billed". That is a contract price for a defect, known in advance. The fee-shifting cases above do not govern it.

What the cases still teach is where such a rule goes wrong in practice: applied to the wrong base, or to entries that were not block-billed, or announced as a total. In the sample invoice, five entries by three timekeepers lump four or five tasks each: 35.6 hours, $6,800.00 billed. The reviewer applies the rule to those five and no others, and they fold into one reduction of $3,400.00, with each entry still listed and the firm free to resubmit with time per task.

Block billing applied in Legal Bill Review: five named entries, one rule, one reduction the firm can answer

The Review screen after the block-billing rule is applied: a row reads 5 block-billed entries, 35.6 hours, combined into one reduction; Nora Pell 16.6 hours, Tobias Reyes 14.4 hours, Ana Whitlock 4.6 hours; each entry lumps 4 or 5 tasks under one time charge; paid at 50% under section 5.2; the firm can resubmit with time per task; $6,800.00 billed, $3,400.00 paid, reduction −$3,400.00, with a link to show the 5 entries. Below, four vague-description entries are listed under section 5.1 to be held until described, such as Attention to file by Graham Lindqvist and Work on discovery by Nora Pell.
Fictional sample data. The 50% share is the sample carrier's guideline term and a setting; changing it creates a new guideline version for claims legal counsel to approve.

A percentage written into the guideline also removes the argument about the number, which leaves only the question a firm can resolve: was this entry block-billed or not? That is the argument a reviewer wants to have, because the entry answers it. Whether the guideline itself may contain such a rule, and which rules bar opinions say it may not contain, is in insurance defense billing guidelines: what courts and bars forbid.

Is block billing allowed?

It is not unlawful, but courts discount it and insurer guidelines such as the sample carrier's discount or forbid it. The federal court order quoted above calls it inappropriate. The LEDES Oversight Committee's standard list of e-billing errors gives it its own code, number 53, "Bulk Billing", with the note "Multiple services or expenses must be itemized as separate entries". A firm billing an insurer under such a guideline has agreed not to do it.

Why it is bad is the courts' reason: the fee claimant carries the burden of documenting hours, and block billing "makes it more difficult to determine how much time was spent on particular activities." It also hides tasks that are separately disallowed, such as clerical work inside a block of legal work, or travel billed at a full rate.

Can a law firm appeal a legal bill reduction?

Yes; guidelines and auditors have long provided for it. New York's bar ethics committee described the outside-auditor version in 1999: a firm whose bill is reduced may ask for reconsideration, but is paid only once it sends further documentation and justification, a step described in the legal bill auditor's seat. For block billing the documentation is simple, the same entry with time per task.

A block-billing appeal in Legal Bill Review: the firm splits the entry, and the recommendation follows the guideline

The Appeals screen for Hale v. Parkline Apartments, Calder and Voss LLP: three appealed lines. The first, Ray Delgado's 5.4-hour entry to prepare for and attend mediation and travel, was reduced $729.00 for block billing; the firm says travel was 0.8 of the 5.4 hours and splits the entry into preparation 0.9, attendance 3.7, travel 0.8; the appeal reader recommends accept, paying 4.6 hours in full and 0.8 at 50% under section 7.3. The other lines are a clerical entry the reader recommends upholding and a research entry it recommends accepting because an approval email is on file.
Fictional sample data. The reviewer accepts or upholds each line; appeals above the carrier's threshold go to claims legal counsel.

A reduction written with all seven parts turns most appeals into resubmissions, which are quick to check. Where reductions are a bare percentage, appeals become arguments about the percentage, and they wait for someone to pull the guideline and the file. How appeals and their outcomes belong on a legal spend scorecard is in the KPIs that show legal spend management paid.

Questions people ask

Why is block billing bad?

Because nobody can tell how long each task took, so nobody can test whether each was reasonable or separately payable. Courts put the burden of documenting time on the lawyer claiming it, and block billing defeats that.

Does block billing increase the time billed?

A California State Bar fee-arbitration advisory, as quoted by the Ninth Circuit in Welch (2007), concluded it may increase time by 10% to 30%. That is a general estimate; the reasoned course is to judge the entries in front of you.

Is a 10% haircut always safe?

In the Ninth Circuit, a court may cut up to 10% on its own judgment without a more specific explanation (Moreno, 2008). That is a rule about judges' fee awards in one circuit, not a licence for an insurer's reviewer to cut every invoice by 10%.

Can a block-billed entry be fixed after it is reduced?

Yes, if the firm resubmits it with the time for each task. In Legal Bill Review's sample, block-billed entries resubmitted that way are reviewed again, and a resubmitted mediation entry is recommended for payment with only the travel at the guideline's travel rate.

What is the difference between block billing and vague billing?

Block billing lumps several described tasks under one time charge; vague billing describes one task too thinly to judge, such as "attention to file". The sample carrier treats them differently: block-billed time is paid at a set share, vague entries are held until described.

Legal Bill Review.
See it on your own files.

An agentic solution from Botminds. Every line of every defense invoice checked against your billing guidelines and the agreed budget before it is paid. Book a demo, or explore how it works.