Resolving Disputes 101:
How to Resolve a Billing Dispute with an Attorney
Ever received a bill for legal services that takes your breath away? It's a common
experience. These tips can help you prepare for successful resolution, and let you
know where PeopleClaim can help in the process.
First: Know your rights.
Client billing rights vary according to state laws, and it's a good idea to ask
your state bar association which laws apply to your situation. In most cases a client
has more rights than are identified in a lawyer's legal fee agreement. Here are
some of the rights you could reasonably expect:
- A written fee agreement, including
- fee basis (e.g., hourly, retainer, flat fee, or contingency)
- if hourly, what rates you'll be charged for lawyer time vs. paralegal
time vs. clerical time.
Tip: be sure to clarify whether the attorney intends to charge you for the
time spent preparing your bill. Legitimately this is lawyer overhead, not your expense.
- any incidental expenses you'll be responsible for (e.g. copies, faxes,
courier or messenger service, postage)
- an estimate of anticipated costs before signing a contract for services
- prompt billing
- an honest and accurate accounting of work performed on your case
- an itemized breakdown of any hourly charges on your statement (A bill that
says "Professional Services: 12.2 hours @ $280" is called "block billing" and could
be inflated.)
- an explanation of any activities and charges that are unclear (e.g., for
research orphone calls, what was the purpose and how did these add value to your
case?) Note: time spent explaining or disputing a bill should not be billable.
- advance notice of any increase in fees Tip: Examine January billing
closely; traditionally, January is when law firms apply any fee increases. Note:
In some states fee increases are not legal unless both parties agree.
Remember: In most states you are guaranteed more rights than are specified
in a typical legal fee agreement. For detailed information about client billing
rights contact your state bar association.
Next: Review your fee agreement and talk to your lawyer.
Examining your fee agreement may explain what's puzzling about your bill.
If not, you need to talk with your lawyer directly. He or she may be able to solve
your problem quickly if it’s an easily recognizable mistake such as double billing.
If not, and you believe the charges are inaccurate or unfair, you'll want to put
your complaint in writing and seek resolution.
Important: If you think your lawyer is stealing from funds intended for you,
you need to report this to your local bar association, and possibly your state attorney
general's office.
How PeopleClaim can help: Filing your complaint online at PeopleClaim.com
is an effective way to document details and get it to your lawyer, and it can add
some pressure and urgency: you can choose to have your complaint post publicly if
the problem is not resolved within ten days. Besides being an incentive for the
lawyer to fix your problem quickly, public posting opens the door to communication
with other claimants who may have valuable experience dealing with lawyers' charges.
PeopleClaim's negotiated process of settlement allows exchange of offers
and counteroffers, a practical alternative to additional legal expenses (which could
easily exceed the amount you’re disputing). For example, a Florida man used PeopleClaim
to challenge a lawyer’s bill for $3,275, and was able to settle within 10 days for
$1,190, an adjustment of nearly two thirds of the billed amount.
Do’s and Don’ts
Do:
- Act quickly after receipt of a bill you question.
- Put your complaint in writing if you're not able to resolve it with a phone
call. Be specific: refer to line items in the bill.
- Make a good-faith attempt to reach a negotiated settlement before suing
your attorney (expensive), or seeking mediation or arbitration services through
your local bar association.
- Keep a record. Write down dates of meetings and phone calls—start time
and end time and what was discussed—and save all documents, canceled checks, and
email or hardcopy correspondence.
- Make it clear that you know your rights.
- Act in good faith and be constructive.
- Be polite and reasonable; try to understand the other side’s position.
How PeopleClaim can help: PeopleClaim's online process helps you state your
complaint and assemble all relevant facts: you can attach text documents or photos,
and even have the system make a timeline for you.
Above: Stating your complaint clearly
Don't:
- Don't use legal terms unnecessarily. You won't impress the lawyer, who
knows his language better than you do, and you may say something that weakens your
case.
- Do not threaten or overstate your case.
- Do not defame the lawyer or his/her profession. Be truthful and avoid inflammatory
words like "liar," "shark," "shyster," or other words that aren't necessary to your
complaint.
Add some extra oomph to your complaint
Let your attorney know you’re serious by bringing your case to the attention
of relevant professional associations and government regulators. PeopleClaim
makes this easy for you.
For example, if you were to choose this option, your complaint could be sent to
your local and/or state bar associations; also to your state's Supreme Court and/or
attorney general if larceny or other illegal activity is involved. Note:
Filing a claim through a bar association or government agency will require a separate
process, which you'll need to follow through on your own if you're not contacted
by the agency directly.
If you feel enough is at stake to sue your lawyer, you can invite a free consultation
from other lawyers through PeopleClaim. (This is voluntary,
and any further engagement would be between you and the lawyer. PeopleClaim is not
an attorney referral service and does not participate in any fees you may agree
to.)
Above: CC your complaint to the bar association.
Try PeopleClaim to resolve your dispute. You can file a claim for free or
add premium options.