Law firm representing PR in bankruptcy cases seeks 3% hike in hourly rates

If the federal Title III court approves the requested increase in hourly billing rates, some 60 Proskauer Rose lawyers will be making $1,038 per hour and some 10 paraprofessionals about $355 per hour. (LinkedIn)

By THE STAR STAFF

Proskauer Rose LLP, the law firm at the center of Puerto Rico’s historic bankruptcy restructuring, has asked the federal court overseeing the case to approve a 3% increase in its hourly billing rates starting Jan. 1, 2026.

If the court approves the hike, some 60 Proskauer lawyers will be making $1,038 per hour and some 10 paraprofessionals about $355 per hour.

The request was disclosed in a filing Thursday under the court’s Additional Presumptive Standards Order, which governs rate adjustments and the retention of expert witnesses in the Title III proceedings. The increase applies to individual timekeepers and is detailed in an exhibit attached to the notice.

New York City-based Proskauer is the leading law firm representing the Financial Oversight and Management Board for Puerto Rico, the federally appointed entity charged with steering the island through its multi-billion-dollar debt restructuring under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act, commonly known as PROMESA. The case, which began in 2017, is the largest public-sector bankruptcy in U.S. history.

Legal fees have been a point of contention throughout the process, with critics arguing that professional costs have ballooned while the island continues to face economic challenges.

Proskauer’s filing emphasizes that the adjustment is consistent with its engagement letter and industry norms for annual rate increases. The firm also submitted a certification, as required by the court, affirming compliance with the presumptive standards.

Proskauer is among several major law firms involved in Puerto Rico’s restructuring, alongside firms such as O’Melveny & Myers and Paul Hastings. According to previous fee applications, top partners at the firms have billed rates exceeding $1,000 per hour, drawing scrutiny from watchdog groups and local stakeholders.

The 3% increase, while modest compared to some past adjustments, underscores the ongoing cost of managing Puerto Rico’s complex financial recovery. Since 2017, professional fees in the Title III cases have surpassed $1.8 billion, according to court filings.

The court will review Proskauer’s notice and certification, but under the Additional Presumptive Standards Order, such annual adjustments are generally permitted if they meet the established criteria. The new rates would take effect on Jan. 1. So far, the only active bankruptcy case is that of the Puerto Rico Electric Power Authority, which has been unable to reach an agreement over its $9 billion debt.