Exactly, that's the most profitable line-item. Paralegal's take-home pay varies considerably, between $15/ and $30/hr, with a few commanding much more. And do most of the work and get paid the least.
Well, there are also a lot of real costs over and above salary. Benefits, office space, computers, telephone, utilities, toilet paper, expenses of all sorts, really.
Think of them like AWS instances, with a partner being an XL and an associate being an M. Big firms can spin up a lot at once to hammer the other side with legal paperwork, but it starts costing you quite a lot per month. Sometimes there are jobs you really need an XL for for maximum concentrated firepower (like negotiating in person, where someone even slightly better can be worth millions/hr in outcome), but oftentimes a M can be a better fit for the task (paperwork, legal motions, almost everything else).
A case like this, you'll have several doing research, poring through contracts, writing motions, etc. It's part of the reason why the judge gave such a big award. The other being that judge's really don't like being jerked around, and withholding evidence like this is just wasting everyone's time. Had Acacia provided the documents when they were requested, the case would have been settled years ago.
Each attorney billes their rate. So ona conference call with 5 attorneys you might get billed 3k an hour. M
Junior and mid level associates (400-650 an hour) do most of the heavy lifting. Partners are more supervisory, but will be do a lot for depositions, hearings, negotiations and trials.
Even a relatively small case against Acacia costs like 1.5-2 mil.
Those are kind of high. Did they actually charge those rates? Or retroactively bumped up the rates once they knew the case was dismissed?